Article: YG Entertainment records a huge gap in profits compared to FNC and Big Hit
Source: mediaus.co.kr
YG Entertainment that was once the most profitable entertainment agency is struggling.
Unlike other agencies that are reporting record profits, YG Entertainment recorded a 2.1 billion won deficit throughout the first and second quarters.
Even lower tier agencies like FNC posted an operating profit surplus of 800 million won in the second quarter. Compared to YG, FNC's operating surplus is four times greater than operating revenues posted by YG.
When compared to Big Hit, the gap is even greater. Big Hit reported a record first half operating profit of 39.1 billion won thanks to global achievements from its main group BTS. SM and JYP also generated profits of 6.7 billion won and 15.2 billion won, respectively.
Big Hit and YG once had something in common. They were a one-hit wonder agencies. Big Hit's main source of income was BTS and YG's was Big Bang. Analysts speculate that Big Hit will most likely suffer just like YG once BTS' submits to mandatory enlistment.