YG Entertainment revealed their financial statements for 2016 on February 22 and the entertainment company superseded the 300 Billion KRW revenue mark for the first time in its history.
For the fiscal year of 2016, YG revealed an operating profit of about 31.9 Billion KRW ($28.2 million USD). This is a huge increase of 46.34% compared to the same period in 2015 when YG posted an operating profit of 21.8 Billion KRW ($19.2 million USD), increasing to a total of 10.1 Billion KRW ($9 million USD).
While in terms of revenue, YG leaps with an increase of 66.66% from 2015 to 2016. YG’s revenue in 2016 hit the 300 Billion KRW mark for the first time and posted 321.8 Billion KRW ($284 million USD). Within the same period in 2015, YG posted a revenue of 193.1 Billion KRW ($170.7 million USD).
With all these huge revenue gains, the net income of YG decreased 41.2% in 2016 compared to 2015. The net income of 2016 was only 14.1 Billion KRW ($12.4 million USD) as compared to 2015 which was 27.9 Billion KRW ($24.6 million USD).
A staff of YG stated, “With artists such as Big Bang and iKON having an increased workload overseas there was also an increase in revenue, it depends mostly on their activities.” The rep also revealed that YG PLUS also helped increase YG’s revenue, “The new artist and new media division also experienced successful revenue from sales.”
As to why the net income decreased despite the huge gains in revenue, the rep attributed this to the big increase in corporation and foreign taxes.
YG also revealed that they will be giving out dividends of 200 KRW ($0.18) per share to shareholders. The total dividend payout is 35.48 Billion KRW ($31.37 million USD). Furthermore, the agency will be having a shareholders meeting next month on March 24.