SM, YG and JYP Entertainment, as publicly traded stock companies on Korea’s KOSDAQ, all recently submitted its 2011 audit report to the Financial Supervisory Service, providing the public with a glimpse inside the financial turnings of the three major entertainment agencies.
First, it was revealed that the combined income of the three major agencies for 2011 was a staggering 182 billion won (approximately 160 million U.S. dollars), an all-time record for the agencies.
SM recorded total sales of 109.9 billion won in 2011, making it the first time the company passed the 100 billion mark. The total sales for 2011 marked a 27.2 percent increase, or 23.5 billion won increase from 2010.
However, business profits were down 19.2 percent compared to 2009 as SM revealed its profit was 20.7 billion won for 2011. Net profits declined 32 percent from 2010 to 16.4 billion won for 2011. SM explained that the decline in profit was due to the rise in ratio of sales costs.
YG revealed its total sales for 2011 was 62.5 billion won, a 39.7 percent increase from 2010. Its business profit was 15.2 billion won and net profits 11.7 billion won to mark a 36.9 percent and 42 percent increase from 2010 respectively.
YG explained its sales increase were largely due to its artists activities in Japan and other royalties rising.
The case for JYP proves a bit trickier to assess. In 2010, Park Jin Young took over Rain’s former agency, J.Tune Entertainment which later became a separate agency, JYP. Though JYP Entertainment, which houses Park Jin Young, miss A, Rain and others, is a publicly traded company, JYP, which is currently home to the Wonder Girls, 2PM, 2AM and others, is not.
To get an accurate assessment, both companies need to be assessed but only JYP Entertainment, as a public company, disclosed its financial statements. JYP will be required to send in its financial audit report by the middle of April. Additional difficulties stems from the fact JYP Entertainment’s 2011 financial audit changed its financial settlement period from June to December providing only the financial statement for the July 1 to December 31 period.
A look at only JYP Entertainment’s six-month audit shows its total sales was 9.9 billion won, operating loss was 2.4 billion won and net loss during the term was 2.1 billion won.
K-Pop isn′t just for fun anymore - it′s a huge business!
Source: Enewsworld.com
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