Soop (067160) investor relations material

Executive summary

• Q3 revenue was KRW 105,687m, up 1.8% QoQ but down 16.0% YoY; operating profit and net profit rose QoQ but remained sharply lower YoY.

• Advertising growth partly offset declining platform revenue; priorities include restoring streamer engagement and platform competitiveness while expanding advertising and global growth.

Financial highlights

• Q3 operating profit was KRW 14,522m, up 15.0% QoQ and down 59.9% YoY; net profit was KRW 10,583m, up 21.0% QoQ and down 64.0% YoY.

• Q3 operating costs were KRW 91,164m, down 0.1% QoQ and up 1.7% YoY; higher depreciation and content production costs were offset by lower labor and network line costs.

• 9M revenue was ₩315.5bn, operating income ₩48.4bn and net income ₩42.2bn, all below the prior-year period.

• Parent-attributable Q3 net income was ₩10.2bn versus ₩28.9bn a year earlier; 9M advertising and content revenue rose to ₩94.6bn from ₩91.6bn.

• QoQ profit improvement reflected easing prior-quarter one-time costs and growth in advertising; lower one-time tax expenses supported net profit despite foreign-currency translation losses.

Outlook and guidance

• From Q4, execution will focus on streamer ecosystem competitiveness; recovery in competitiveness and business performance is expected to become evident in 2027.

• Platform recovery and advertising expansion will proceed in parallel; advertising is expected to supplement the recovery period, while platform competitiveness is key to restoring prior operating margins.

• SOOPHERE organizational setup is planned by year-end, with launch in Q1 2027 to support advertiser acquisition and ad business expansion.

• The platform UI/UX overhaul is slated for unveiling at year-end streamer awards, followed by phased rollout in H1 2027.

• Priorities include global expansion, AI recommendations and translation, and expanded short-form, VOD, esports and sports content; new payment, AI/software and streamer-IP commerce initiatives remain under review.