SOOP's operating profit for the third quarter of this year fell by approximately 60% compared to the same period last year, primarily due to a decline in revenue from its core platform business. Although advertising revenue rebounded from the previous quarter, the decrease in platform revenue and rising operating costs weighed heavily on the company's performance.
On October 30, SOOP announced that its consolidated operating profit for the third quarter was 14.5 billion won, a 59.9% decrease from the same period last year.
Revenue totaled 105.7 billion won, down 16% year-on-year, while net profit fell by 64% to 10.6 billion won.
The poor performance was particularly evident in the platform sector. Third-quarter platform revenue was 66.1 billion won, representing a 21.3% decrease compared to the same period last year and a 10.8% decline from the previous quarter. This decline is attributed to increased competition for users and content as more platforms become available for streamers.
Advertising revenue was 36.8 billion won, down 5.5% year-on-year but up 35.4% from the previous quarter. The increase in revenue was driven by a rise in content-related advertising, which grew by 54.6% to 19.5 billion won due to more events linked to game companies, including tournament production and operations, showcases, and pop-ups.
Conversely, operating costs rose by 1.7% year-on-year to 91.2 billion won. The continued cost burden amid declining revenue led to a widening drop in operating profit.
Lee Min-won, SOOP's co-CEO, stated during a conference call that the increased competition for content among streamers is also impacting sponsorship revenue. He added, "We believe it will take time for platform revenue to recover significantly."
SOOP plans to respond to the resumption of activities by major streamers in the fourth quarter and the demand for brand marketing during the year-end season. The company aims to expand user engagement through key content such as ASL, LCK, the League of Legends World Championship, global esports, and women's professional volleyball, while also seeking more collaboration opportunities with external partners.
* This article has been translated by AI.
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