April 26, 2024

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[THE INVESTOR] YG Plus’ earnings will begin to improve significantly, especially in its new business sectors, said Korea Investment and Securities on Dec. 26. 

Its revenue has jumped in the second and third quarters, surpassing 20 billion won mark for the first time, turning to black. Teaming up with Naver for music business has been its strongest momentum. Earnings of leading reservation site X-golf operator Green Works, which it acquired last year, was reflected as well, while losses of its cosmetics unit shrank. It is expanding through aggressive mergers and acquisitions, but earnings have been slow. However, its revenue and profits are improving, explained analyst Lee Yun-sang.

The company has begun proxy operations and music source distribution for Naver Music and Vibe. Thanks to the distribution of artificial intelligence speakers, music platforms are attracting more consumers. Vibe is an AI-based music platform equipped with Naver’s content recommending algorithm and will replace Naver Music next year. The company’s earnest marketing campaign will directly boost YG Plus’ music business. Its golf business is the second largest revenue generator. YG Sports organizes tournaments and manages golfers while Green Works is strengthening its market dominance, said the analyst.

By Hwang You-mee (glamazon@heraldcorp.com)