[Market Focus] SOOP Faces Growing Doubts Over Growth... 'Weakness'

SOOP is experiencing a downward trend. This is believed to be due to securities firms' analyses, which have raised doubts about the company's growth after it did not disclose its Monthly Unique Visitors (MUV) in its first quarter earnings announcement.

As of 2:02 p.m. on April 30, SOOP was trading at 82,200 won, down 2,600 won (3.07%) from the previous trading day.

Lim Heeseok, a researcher at Mirae Asset Securities, stated, "It is concerning that SOOP did not disclose its MUV figures in this earnings report, which it has done for several years. SOOP's MUV growth rate declined by 17% year-on-year in the fourth quarter of last year, indicating that its negative growth trend has accelerated." He added, "The year-on-year growth rate of first-quarter Gift Economy Product sales fell below 10% for the first time in two years, and it is estimated that the growth of Average Revenue Per Paying User (ARPPU) is also slowing."

He emphasized, "There are possibilities of a sharp slowdown in the growth of Gift Economy Products, which previously drove revenue growth, as well as further domestic traffic declines due to intensifying competition. In addition, the gradual decrease in margin rate due to the shrinking proportion of high-margin segments, and the beginning of increased costs for global business, which is highly uncertain, make further de-rating inevitable."