3rd Quarter Operating Profit: 23.9 Billion KRW, 9% Rise YoY
Despite Platform Boom, One-off Costs from Tmap Incident
Speeding Up Domestic and International Expansion with Rebranding Platform
“Holding Streamers Accountable Individually Is Excessive”
[Dailyan = Lee Ju-eun] Despite continued revenue growth in the third quarter, SOOP slightly missed market expectations due to one-off costs related to the Tmap incident. The company expressed confidence in their responsible platform management amid recent controversies involving the commercialization of sex and money laundering suspicions on Excelcast.
According to the Financial Supervisory Service’s electronic disclosure system on the 31st, SOOP’s operating profit reached 23.9 billion KRW in the third quarter, a 9% increase compared to the same period last year. Revenue for the same period rose 25% year-on-year to 110 billion KRW.
While the increase in new streamers, average concurrent broadcasts, and viewers contributed to the growth in platforms and advertising sectors, one-off costs surged, significantly increasing operating expenses. The third quarter operating expenses rose by 30.5% year-on-year and 17.6% from the previous quarter, totaling 86.1 billion KRW.
The rise in expenses was mainly due to one-off write-offs related to the Tmap incident and increased payment fees from acquiring broadcasting rights for the Paris Olympics and investing in AI technology.
As a result, the revenue slightly exceeded market expectations, achieving a record high, while operating profit fell short of expectations. According to financial information provider FnGuide, SOOP’s projected revenue for the third quarter was 109.3 billion KRW, with an operating profit of 28.2 billion KRW.
The company aims to solidify its position as the No. 1 operator in the domestic market and accelerate its entry into the global streaming market, spearheaded by its rebranded platform. On the 15th, SOOP announced a new beginning by changing its domestic streaming platform’s name from ‘AfricaTV’ to match the company name.
CEO Jeong Chan-yong stated, “Rebranding is a momentum to express the commitment to new services and features.”
SOOP is also speeding up the enhancement of its globally beta-launched platform, aiming to fully integrate P2P functionality and officially launch within the year.
Jeong emphasized, “Our primary goal is to secure a strong market share domestically, but global expansion is essential. By the end of this year and the first half of next year, we aim to demonstrate metrics that assure the capital market of our growing domestic share, after which we will focus more on global expansion.”
Regarding recent speculations and concerns raised during the national audit over Excelcast, Jeong pointed out that while these worries might be excessive, the company was committed to handling them responsibly. Excelcast refers to broadcasts on an internet platform where streamers are rewarded based on the amount of support they receive.
Jeong stressed, “Excelcast doesn’t have any illegality. It’s misguided to speak about its risks as confirmed facts when regulatory measures are being considered without any proven illegalities. If money laundering within Excelcast is proven, punishment and a strong company response will follow. Holding the platform accountable for personal issues of participating streamers is excessive. Nonetheless, we’re diligently monitoring these issues, and we ask for trust in our operational expertise and discretion.”