Soop (067160) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached KRW 127.4 billion, up 9% QoQ and 21% YoY, driven by strong advertising and global business growth, with net profit at KRW 25.5 billion, up 13.2% QoQ and 6.1% YoY.

• Virtual idol content, successful gaming events, and the PlayD acquisition fueled category and advertising growth.

• The PlayD acquisition enabled a hybrid ad model, enhancing campaign wins and value chain integration.

• Global business progress was notable in the Chinese-speaking market, with exclusive LCK broadcast rights and successful VCT Thailand League event.

• AI advertising technology commercialization began, generating first commercial revenue from AI video campaigns.

Financial highlights

• Q3 revenue was KRW 127.4 billion, up 9% QoQ and 21% YoY; nine-month revenue was KRW 350.4 billion.

• Advertising revenue surged 31.5% QoQ and 86.4% YoY to KRW 40.5 billion, mainly from branded content.

• Platform revenue was KRW 84.1 billion, down 0.6% QoQ but up 2% YoY; operating expenses were KRW 96.3 billion, up 11% QoQ and 18% YoY.

• Operating profit was KRW 31.2 billion (24.5% margin), up 4% QoQ and 31% YoY; net income was KRW 25.5 billion, up 13% QoQ and 6% YoY.

• Total assets at Q3 2025 were KRW 866.3–874.6 billion, with a debt ratio of 35%.

Outlook and guidance

• Focus on expanding global presence, especially in Southeast Asia and Chinese-speaking markets, and enhancing AI-driven personalization.

• Continued investment in R&D and digital transformation to support long-term growth.

• Branded content ad momentum expected to continue, though subject to market seasonality and game industry trends.

• Management expects stable revenue growth from both domestic and international markets, with digital advertising as a key driver.