YG Entertainment Inc., the agent for South Korean rapper Psy, rose to the highest level in six months in Seoul trading as the popularity of the singer’s new music video boosted the company’s earnings prospects.
YG Entertainment rose 1.9 percent to 86,600 won at the close on the Korea Exchange, the highest level since Oct. 10, following a 13 percent gain yesterday. The Kosdaq Index, where the company is listed, added 0.9 percent.
Psy’s “Gentleman” music video has been viewed more than 86 million times on Google Inc.’s YouTube website, after it was released globally on April 13. It comes nine months after the singer’s release of “Gangnam Style,” YouTube’s most-watched video of all time with more than 1.5 billion views.
“The stock is rallying on expectations the latest single will become the next hit,” Han Sang Ung, an analyst with Korea Investment & Securities Co., said by phone in Seoul. Psy’s new album and concerts will boost the company’s earnings, Han said.
Advertising revenue from Psy’s YouTube clips is estimated at 200 million won ($179,000) a month, including the licensing fee that goes to Google, according to Han Youp Lee, an analyst at Samsung Securities Co. Psy also appears in TV commercials in South Korea for companies such as Samsung Electronics Co. and LG Uplus Corp.
The 35-year-old singer, whose real name is Park Jae Sang, will tour the U.S. in April, Europe in May and Asia in June to promote the new single, Hwang Min Hee, a spokeswoman for YG, said by phone today.
Gangnam Style, which featured satirical lyrics about the habits of wealthy South Koreans, propelled Psy to global fame, earning him appearances on U.S. television programs including “The Ellen DeGeneres Show” and NBC’s “Today Show,” and a nomination for Time magazine’s 100 most influential people.
Similar to Gangnam, Psy again makes himself the butt of the joke in Gentleman, which matches a throbbing electronic beat with catchy Korean lyrics climaxing in a chorus of “I’m a mother father gentleman.”
YG’s operating profit may rise to 38 billion won this year from 21.5 billion won, Korea Investment’s Han estimates. The company reports first-quarter earnings in May.
YG shares have surged 41 percent this year, compared with a 13 percent gain in the Kosdaq.