SOOP Operating Profit Falls 59.9% YoY to KRW 14.5 Billion

Impact of Declining Platform Revenue

SOOP's third-quarter operating performance declined year over year due to lower platform revenue and increased costs.

SOOP disclosed on Oct. 30 that its consolidated operating profit for the third quarter of this year was tentatively tallied at KRW 14.5 billion, down 59.9% from the same period last year.

Revenue fell 16% from the same period last year to KRW 105.7 billion, while net profit dropped 64% to KRW 10.6 billion. Revenue from the platform segment was KRW 66.1 billion, down 21.3% from the third quarter last year and 10.8% from the previous quarter. Advertising revenue was KRW 36.8 billion, up 35.4% from the previous quarter but down 5.5% year over year.

SOOP said content-driven advertising revenue rose 54.6% from the previous quarter to KRW 19.5 billion, as game-related events such as tournament production and operations, showcases, and pop-up events increased.

Meanwhile, operating expenses rose 1.7% to KRW 91.2 billion.

In the fourth quarter, SOOP plans to respond to the return of major streamers and year-end demand for brand marketing, while expanding user engagement through key content such as ASL, the LCK and LoL World Championship, global esports, and women's professional volleyball. It also plans to expand opportunities for collaboration with external partners.

SOOP will also strengthen its support system to foster the streamer ecosystem. In September, it introduced the "Emblem System," which recognizes streamers' cumulative achievements and boosts their motivation. Since October, it has also been running "Partners Mentoring," in which MCNs and partner streamers participate.

In the service area, SOOP will share plans for a UI/UX revamp at the end of this year and begin implementing them in phases next year. In advertising, it will officially launch SOOPHERE, an integrated marketing brand that brings together the advertising and marketing capabilities of SOOP and its affiliates, in the first quarter of next year.

SOOP said it canceled 306,375 treasury shares in September, equivalent to approximately 2.7% of its total shares issued. The company plans to pay cash dividends of at least 25% of its consolidated net income while developing measures to maintain its status as a high-dividend company.

This content was produced with the assistance of AI translation services.