[Click eStock] "DearU, This Year's Momentum is KakaoTalk Gift and Japan Expansion"

On the 7th, it was analyzed that KakaoTalk Gift Shop entry and expansion into the Japanese market are key momentum factors for DearU this year.

DearU announced in a disclosure the previous day that its sales and operating profit for last year were 75.69187 billion KRW and 28.59083 billion KRW, respectively, marking increases of 53.9% and 75.6% compared to the same period last year. It explained, "We continued our streak of strong performance by achieving the highest-ever operating profit margin, following the previous quarter."

Samsung Securities identified DearU's momentum this year as the entry into KakaoTalk Gift Shop and the launch of the 'Bubble for Japan' service in Japan through a joint venture.

Minha Choi, a researcher at Samsung Securities, said, "Recently, they started the KakaoTalk Gift Shop service, which means a new sales channel has been created. Previously, DearU Bubble subscriptions could only be purchased through Google Play Store and Apple App Store, but with subscription sales starting via KakaoTalk, we can expect improved 'accessibility' to subscription products due to the addition of a new channel."

Along with this, an expansion of the subscriber base among teenagers and light fandoms is also expected. He explained, "Through KakaoTalk Gift Shop, teenagers without credit cards can make payments linked to their bank accounts. They can start subscriptions by receiving 'subscription tickets' as gifts from friends and acquaintances, which is expected to be positive for securing new subscriber groups."

He added, "Since the sales contract was made under more favorable conditions than existing sales channels, it is also expected to contribute to profitability improvement."

He emphasized the need to pay attention to whether the 'Bubble for Japan,' scheduled to launch this month, can contribute as a new revenue source. He said, "The business is starting as a joint venture with M-Up Holdings, Japan's largest entertainment and fan platform company. There is a high possibility of quickly establishing a presence locally without massive initial marketing and investment costs."

He stated, "Starting with the girl group 'TWICE' in November last year, the 'Bubble Font' service began, allowing fans to receive messages in the artist's unique handwriting for an additional monthly subscription fee of 700 KRW. Although only TWICE has started this service on a trial basis, it is highly likely that other artists will be added sequentially this year."

He added, "Previously, the monthly subscription fee for Bubble subscription sales was virtually the only revenue source, but with the addition of digital items, we expect to enjoy a gradual increase in average revenue per user (ARPU) this year."