Experts predict that YG Entertainment’s company growth, sales and profits will decrease next year. The newly launched group is currently not capable of replacing BlackPink.

When BabyMonster debuted on November 27, Yuanta Securities lowered YG Entertainment’s target stock price from 75,000 won to 65,000 won.

Lee Hwan Wook, researcher at Yuanta Securities, said that YG’s expected revenue and profit next year are 369.3 billion won and 46.1 billion won, respectively, a decrease of 32.7% and 51.5% over the same period last year.

“Kpop idol album sales next year will be about 4.26 million copies, down 18.7% compared to 2023. Except for BlackPink, the decline is inevitable,” experts said.

BabyMonster can hardly save YG Entertainment.

The expert said performance growth in the streaming sector in 2024 increased slightly by 0.5% or remained unchanged compared to this year. However, the total number of visitors is expected to be about 600,000, sales of 29.5 billion won, a decrease of 73%.

Yuanta Securities lowers the target stock price by reducing its performance estimate, assuming BlackPink’s contract is not renewed. The above predictions show that it will be difficult for BlackPink’s replacement group to save YG in the face of continuously falling stocks.

As of the morning of November 30, YG Entertainment’s shares were trading at 51,800 won on KO SDAQ, down 0.77% compared to the previous trading day.

Currently, YG is quite optimistic when BabyMonster’s debut song Batter Up topped the global YouTube chart for two consecutive days. On the MV charts in the US and UK – the two largest music markets in the world, the song ranked 3rd and 7th respectively.

There is no sign of BlackPink re-signing a contract with YG.

BabyMonster is YG Entertainment’s first girl group since BlackPink debuted. As a girl group that is supposed to replace BlackPink, the company’s investment in the group is quite superficial. YG Entertainment announced that the company has no plans for BabyMonster to perform on music shows. This is a controversial decision.

“BabyMonster is currently not scheduled to appear on music shows. The detailed plan will be announced once we complete it. Currently, our focus is on preparing the next promotional activities and songs,” YG responded to the media.

Meanwhile, some people think that YG still regrets BlackPink, wants to re-sign the contract, and spend money to invest in the “chicken that lays golden eggs”, which has a larger global fan base than BabyMonster.