YG Entertainment's Profit Plunges 56.8% Despite BIGBANG World Tour

YG Entertainment's operating profit fell by more than half in the third quarter of 2026 compared with a year earlier.

The company reported preliminary consolidated revenue of 156.7 billion won and operating profit of 13.5 billion won for the quarter in a regulatory filing released on Nov. 9. Revenue declined 9.4% from a year earlier, while operating profit dropped 56.8%. Net income fell 73.8% to 6.4 billion won.

As operating profit fell much faster than revenue, YG Entertainment's operating margin narrowed from approximately 18.0% in the third quarter of 2025 to 8.6% this year.

The decline may partly reflect a high comparison base from the previous year, when tours by BLACKPINK and other artists contributed to strong results. Operating costs associated with BIGBANG's world tour and distribution fees may also have weighed on the company's operating margin.

Results nevertheless improved quarter over quarter. In the second quarter, YG Entertainment recorded revenue of 127.8 billion won and operating profit of 11.0 billion won. Revenue rose 22.7% in the third quarter, while the operating margin remained at a similar level. Concert revenue and merchandise sales from major artists' world tours appear to have contributed to the improvement.

YG Entertainment continues to organize concerts and release music through its roster of artists. Girl group BABYMONSTER is currently on its second world tour, "2026-27 BABYMONSTER WORLD TOUR [CHOOM]." The tour has 31 scheduled shows across 18 cities, with additional stops planned in North America, South America and Europe.

Boy group TREASURE released its fourth EP, "NEW WAV," in June and completed a fan concert tour that included 22 shows in 10 cities. The group also released the digital single "SHOCK" on Nov. 2.

YG Entertainment is also preparing to debut new artists. The company previously announced plans for a five-member boy group and a four-member girl group, alongside the ongoing activities of its established acts.