A woman stands for a photograph near a staircase bearing the logo and release date of BTS’ 2026 album at Gwanghwamun Square in Seoul on January 14, 2026. The K-pop powerhouse is set to begin a comeback world tour in April, according to its agency. (Photo by Jung Yeon-je / AFP via Getty Images)
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Shares in Hybe, the entertainment company representing K-pop supergroup BTS, jumped 10% on Friday as investors responded to an optimistic third-quarter outlook driven by a surge in global concert activity.
South Korean brokerage iM Securities estimates that Hybe’s third-quarter revenue will climb 106% year over year to 1.5 trillion won ($1.11 billion). Operating profit is forecast at 172.2 billion won, while concert revenue could reach 717 billion won—nearly three times the figure recorded during the same period last year.
Hybe’s gains significantly outpaced the broader Kospi, which advanced 2.9% on Friday.
During the third quarter, BTS’ world tour included 16 stadium performances across North America and another eight in Europe.
The BTS dates, combined with expanding tours by newer acts such as Enhypen, Katseye and Cortis, helped push Hybe’s quarterly concert attendance close to 3 million, potentially setting a new company record, according to the report.
BUSAN, SOUTH KOREA – JUNE 12: Fans pose for photographs beside BTS images and character displays at Jonghap Undongjang Station near Busan Asiad Main Stadium, the venue for BTS World Tour ‘Arirang,’ in Busan, South Korea, on June 12, 2026. (Photo by Hwawon Ceci Lee/Anadolu via Getty Images)
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For the first time, venues in Western markets represented more than 70% of Hybe’s total concert attendance, highlighting the company’s widening international footprint. The brokerage said growing activity from newer artists in North America and Europe is helping fuel that shift. Even with unfavorable currency movements, concert, merchandise and licensing revenue are expected to reach record highs.
Concert margin outlook
Higher royalty payments to established artists and the upfront expense of touring newer groups are likely to pressure margins. However, iM Securities expects Hybe to preserve a double-digit operating margin, with BTS’ stadium-scale tour providing crucial support.
Jiwoo Oh, an analyst at CGS Securities, told CNBC after Hybe’s second-quarter results that concerts and artist appearances carry heavier costs because of increased revenue-sharing arrangements. At the same time, she said merchandise, digital content and fan-club operations contribute substantially to the company’s bottom line.
Hybe posted an 11.8% operating margin in the second quarter of 2026, Oh noted. Artist-related revenue made up 72% of total sales, with concerts alone contributing 45%.
“We believe this demonstrates that stadium-scale operating leverage can more than offset the higher cost base associated with concerts,” she said.
Hybe’s shares plunged after the company released its second-quarter earnings on July 28, erasing as much as $1.96 billion in market value in less than a day.
Analysts attributed the sell-off to weaker-than-expected profit margins, even though Hybe reported record revenue and operating profit.
Rookies step up
The iM Securities report said the performance of newer groups, particularly Katseye and Cortis in Western markets, will be critical to helping Hybe reduce its dependence on BTS.
SEOUL, SOUTH KOREA – APRIL 20: CORTIS members Juhun, James, Seong-hyun, Geon-ho and Martin attend a media showcase for the group’s second mini album, ‘Green Green,’ and its title track, ‘Red Red,’ at YES24 Live Hall on April 20, 2026, in Seoul, South Korea. (Photo by THE FACT/Imazins via Getty Images)
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iM Securities also said unexpectedly strong demand for additional BTS shows in Japan and the Middle East, along with potential encore concerts, could prompt analysts to raise their 2027 earnings forecasts for Hybe.
Kyobo Securities, which expects third-quarter concert revenue to reach 724.4 billion won, expressed optimism around Hybe’s newer acts, stating “growth among younger artists is becoming more visible alongside BTS’ tour.”
Cortis is selling around 600,000 albums per month on average, demonstrating strong fandom demand, the brokerage said, while Katseye is expanding its overseas presence on the back of global streaming and album performance.
