Miracle making BTS power: Will Big Hit surpass SM, YG and JYP?
No doubt, BTS is the most popular k-pop idol group now. Then do you know how much Big Hit Entertainment, home to the boy group, earned last year?
In 2017, Big Hit Entertainment earned a total of 92 billion won (about 81 million USD). Big Hit's earning was less than that of SM (216 billion won), YG (264 billion won) and JYP (96 billion won), but you know, Big Hit, which was a very small company, has achieved remarkable growth.
And what's most notable about Big Hit's growth is that the k-pop agency's operating profit to sales ratio (35%) was much higher than that of the big 3 k-pop agencies (SM: 12%, YG: 10%, JYP: 18%), which means Big Hit's business was very profitable. Basically, it is because of two reasons. First, Big Hit doesn't have as many musicians as the other 3 k-pop agencies, which means Big Hit doesn't need to invest as much money as them. Second, yeah, BTS alone earns so much money.
In this situation, Big Hit is receiving the most attention from investors. As you may know, Big Hit is preparing for a stock exchange listing. And investors love companies whose operating profit to sales ratio is high because, as I said, it means the companies' businesses are very profitable.
Some stock experts even expect that Big Hit's market cap will be more than 1 trillion won, which is much bigger than that of SM, the biggest k-pop agency. Years ago, Bang Si Hyuk and Big Hit couldn't even imagine such a thing, of course. However, yeah, a miraculous thing happened thanks to BTS. It's BTS power.