Soop (067160) Q2 2024 earnings summary

Executive summary

• SOOP completed a successful rebranding and expanded business efforts in H1 2024, including the installation of an ESG committee and a new audit committee, while maintaining strong momentum into Q3 and Q4.

• Operates a leading 1-person media platform with strong community engagement, diversified revenue streams, and ongoing global expansion, highlighted by the global SOOP beta launch in June and Thailand as a key base.

• Maintains a robust financial position, stable capital structure, and consistent dividend policy, supported by a strong credit rating (AAO).

Financial highlights

• Q2 2024 revenue reached KRW 106.5 billion, up 12% QoQ and 23% YoY; H1 2024 consolidated revenue was KRW 201.5 billion, up 26.4% YoY.

• Q2 operating profit was KRW 33.3 billion, up 17% QoQ and 41% YoY, with a margin of 31.3%; H1 operating profit was KRW 61.8 billion.

• Net profit for Q2 was KRW 28.3 billion, a 15% QoQ and 25% YoY increase; H1 net profit was KRW 52.4 billion.

• Platform revenue accounted for 80.1% of H1 total, advertising/content 18.8%, and other 1.1%.

• Cash and equivalents at period-end: KRW 118.6 billion; total assets: KRW 616.5 billion; equity: KRW 331.3 billion.

Outlook and guidance

• Momentum remains strong into Q3, with July performance on track with Q2.

• Focus on strengthening the ecosystem, expanding VOD and sports content, and accelerating global SOOP rollout, with Thailand as a strategic hub.

• Labor costs expected to remain stable; G-Star event costs to rise about 30% YoY due to inflation.

• Expects ongoing growth in digital content consumption and further market expansion, especially in mobile and global segments.