K-pop agencies mostly struggled in third quarter — but 2025 may bring financial recovery

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K-pop agencies mostly struggled in third quarter — but 2025 may bring financial recovery
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All of the “Big Four” companies, except JYP Entertainment, posted falls in profits for the third quarter of 2024.

Three of the"Big Four" K-pop agencies have seen posted downbeat third-quarter results, mainly due to poor album sales.Citi forecasts a financial recovery in 2025 to 2026, with Hybe and SM Entertainment as their top picks.

Feeling out of the loop? We'll catch you up on the Chicago news you need to know. Sign up for the weekly While K-pop investors might want to put 2024 behind them, given dismal year-to-date stock returns and largely poor financial results, they can look forward to 2025, research firm Citi Research suggests.

Return of top groups BTS and Blackpink and improved monetization of fandom platforms will help shore up revenues, according to Citi.DearU is a fan communication platform known for its Bubble messaging service, where fans pay a monthly subscription fee to receive exclusive messages from artists. A foreign exchange tailwind is also expected due to the weakening of the Japanese yen, with Citi expecting JYP to benefit most due to its relatively higher revenue exposure to Japan.

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