[Edaily Reporter Lee So-Hyun ] SOOP(067160)saw its profitability deteriorate significantly in the second quarter of this year due to sluggish advertising revenue and one-time costs related to a tax audit. However, with donation-based revenue rebounding and traffic recovering to last year’s levels, the company plans to launch policies to revitalize the streamer ecosystem starting in the third quarter. By year-end, it plans to reignite growth in its core business by unveiling a user interface (UI) and user experience (UX) overhaul incorporating artificial intelligence (AI), as well as a unified advertising brand.

SOOP announced on the 31st that its consolidated revenue for the second quarter of 2026 was 103.8 billion won, a 11.2% decrease compared to the same period last year. Operating profit fell 57.9% to 12.6 billion won, and net income decreased 61.1% to 8.7 billion won. The operating profit margin fell by 13.5 percentage points to 12.2% from 25.7% in the second quarter of last year.

While both platform and advertising revenue saw double-digit declines, operating expenses rose 5.0% year-over-year to 91.2 billion won. Commission payments—including broadcasting rights fees—and streamer support funds increased, and one-time costs related to a tax audit also impacted profitability.

During a conference call held that day, SOOP explained that costs related to the tax audit had the greatest impact among the one-time expenses. Although the company did not disclose the specific amount, it stated that it was below the threshold requiring legal disclosure. The company projected that since these costs were fully reflected in the second quarter, the additional financial burden would be resolved starting in the third quarter.

Lee Min-won, CEO of SOOP, said, “Management is acutely aware of the situation the company currently faces,” adding, “It is time to take a sober look at the current situation—not only in terms of short-term performance but also in terms of the growth of the streamer and content ecosystem—and make the necessary changes.”

Donation-Based Economy Revenue Rebounds… “Traffic Recovers to Previous Year’s Level”

It is encouraging that, despite sluggish overall performance in the second quarter, key platform metrics showed signs of a rebound.

Second-quarter platform revenue totaled 74.1 billion won, a 12.3% decrease from the same period last year but a 0.1% increase from the previous quarter. As traffic rebounded due to the popularity of Minecraft server content and the return of major streamers, revenue from the donation economy—the company’s core revenue source—also increased by approximately 300 million won compared to the previous quarter.

CEO Lee stated, “Revenue from the donation economy began to rebound in the second quarter, and traffic has recovered to the level seen in the same period last year,” adding, “SOOP’s live streaming competitiveness, built up over a long period, and the foundation of its streamer ecosystem remain solid.”

Advertising revenue totaled 27.2 billion won, a 11.6% decrease compared to the same period last year. This was due to a slowdown in the advertising market during the first half of the year and advertisers’ conservative spending trends, compounded by schedule adjustments for major game leagues and large-scale events. Schedule adjustments for certain esports leagues and Nexon FC resulted in a revenue decrease of approximately 1.5 billion won compared to the previous quarter.

SOOP projected that advertising revenue will return to a growth trajectory in the second half of the year as game league schedules normalize and the peak advertising season begins.

Streamers Foster Streamers… New System Unveiled in Q3

SOOP presented its growth strategy for the second half of the year based on three pillars: △ traffic and revenue growth, △ service revitalization, and △ revenue diversification.

First, the company will introduce a system where existing streamers directly discover and nurture new streamers. The plan is to move away from the company’s previous model of directly supporting and developing creators, and instead create a virtuous cycle within the streaming ecosystem where new talent is attracted and grows.

The company is also preparing a “Performance Certification System” based on existing streamers’ activities and achievements. Designed to boost streamers’ motivation and expand content production, specific details will be announced within the third quarter.

CEO Lee stated, “The overall direction is to shift from a ‘structure where the company directly fosters growth’ to a ‘structure where the ecosystem grows on its own,’” adding, “We will focus on expanding the influx of new streamers and users while increasing the engagement of existing users.”

The service’s UI and UX will also undergo a complete overhaul. The company plans to restructure the platform beyond the existing feature-centric interface so that users can easily discover more streamers and content and enjoy new content experiences.

Regarding the rationale behind this first major UI/UX overhaul in two years, CEO Lee explained, “Although we conducted a large-scale UI overhaul during the 2024 rebranding, feedback from users and streamers indicated that usability had not significantly improved.” He added, “The existing service also suffered from a cluttered mix of information, pages, and features accumulated over a long period, making it difficult to navigate content.”

The platform will also implement features such as AI-based personalized recommendations, subtitles, and chat translation. The strategy aims to enhance convenience for both streamers and users while lowering language barriers for international users, thereby expanding the global user base. The updated UI and UX are scheduled to be unveiled at SOOP’s streamer-focused event later this year.

Consolidating Advertising Capabilities… Key Metrics to Be Disclosed

To diversify revenue streams, SOOP will also launch an integrated marketing consulting brand within the year by consolidating the advertising capabilities of SOOP and its three sister companies (PlayD Co., Ltd., TTL, and CTTD).

The plan is to maintain each company’s expertise while operating as a single brand in the advertising market to enhance purchasing power and sales capabilities. In the short term, the goal is to expand the advertiser base and the scale of the platform’s advertising ecosystem; in the long term, the company aims to establish an advertising structure that enables streamers, brands, and users to grow together.

The acquired volleyball team will also be utilized as a strategic investment to link sports content with advertising and e-commerce businesses. The team’s annual operating expenses are estimated at 5 to 6 billion won, and related costs began to be partially reflected in the financial statements starting last June.

SOOP plans to offset these costs through local government subsidies, sponsorships, and ticket sales, while leveraging volleyball content to drive platform traffic and generate advertising and commerce revenue.

The company will also strengthen communication with the market. Starting with the third-quarter earnings announcement, it has decided to disclose key metrics so that investors can assess the platform’s growth potential and business trends. It also plans to finalize and announce specific plans regarding the use of treasury stock by the end of the year.

CEO Lee emphasized, “It may take some time for the changes we are preparing to translate into actual results,” but added, “Rather than being swayed by short-term numbers, we will focus on restoring the competitiveness of our core business and building a SOOP that can grow again.”