[Click eStock] "SOOP, One-Time Dip in Q3 Earnings"

Meritz Securities analyzed on the 1st that SOOP's third-quarter performance fell short of market expectations. The target price was lowered from the previous 120,000 KRW to 110,000 KRW.

In the third quarter, SOOP recorded consolidated sales of 110 billion KRW and operating profit of 23.9 billion KRW, increasing by 25.2% and 9.0% respectively compared to the same period last year.

Researcher Lee Hyo-jin of Meritz Securities explained, "The 6.5 billion KRW bad debt from Happy Money had an impact," adding, "Advertising and other sales were favorable due to the annual settlement effect of 'Gwangdong Freaks' in the LCK."

She continued, "This year, platform and content advertising sales are expected to reach 69.8 billion KRW, a 1.8% increase from last year," and added, "It has been proven that the core structure of SOOP's revenue is the donation economy."

Researcher Lee analyzed, "They are planning an official global platform launch," and "meaningful performance contributions are expected three years from now." She also emphasized, "Since initial services are being conducted mainly in Southeast Asia, it will take time to establish a revenue structure similar to that of the domestic market," and "While growth due to additional streamer transfers from competitors is possible, the impact will not be significant compared to the Twitch effect."