[Edaily Reporter Lee So-Hyun ] SOOP(067160)cited a mismatch between traffic and payments as the reason behind the decline in revenue from its core platform despite an increase in users in the third quarter of this year. The company explained that while the number of visitors rose due to games, esports, and an influx of global users, the conversion rate to payments was relatively low; additionally, the “Visual Radio” service—which contributes significantly to revenue through the donation-based economy—continued to be affected by the departure of some streamers.

SOOP noted that the recovery of platform revenue is taking longer than expected and plans to accelerate efforts to attract more streamers and revamp its services.

Lee Min-won, CEO of SOOP, stated during the third-quarter earnings conference call held on the 30th, “As streamers’ platforms diversify, competition to secure content is intensifying, and this is also affecting the donation-based economy, which is our core revenue base.” He added, “Although the advertising business has grown, a full-fledged recovery in platform revenue is taking longer than expected.”

Visitor Numbers Up, but Platform Revenue Down

SOOP’s third-quarter average monthly unique visitors (MUV), disclosed for the first time in this earnings report, stood at 6,618,000, a 2.0% increase from the same period last year. The average for January through September of this year also rose by 3.0% to 6,436,000.

In contrast, third-quarter platform revenue totaled 66.1 billion won, down 21.3% year-over-year and 10.8% quarter-over-quarter. This decline was driven by reduced revenue from the donation-based economy, resulting from a decrease in major crew broadcast activities and the departure of some streamers.

During its conference call that day, SOOP cited changes in user composition as the reason for the mixed performance of these two metrics. While the popularity of games and esports, along with an influx of global users, drove traffic growth, these users were relatively less likely to make in-platform purchases. Conversely, the “Visual Radio” segment—which contributes significantly to the donation-based economy—was affected by the departure of streamers.

In response, SOOP has been operating a “Partner Mentoring” program since October. Currently, approximately 20 major content partners are participating, and about 25% of partner streamers who qualify as mentors have joined the program. Under this initiative, MCNs and existing streamers support new and returning streamers with content planning and adapting to the platform.

Consequently, the company expects a significant influx of new streamers and their external audiences and communities to begin in earnest starting this November. The strategy is to reduce reliance on specific content and major streamers while expanding the streamer pool to restore revenue from the donation-based economy.

By the end of the year, the company will unveil its UI/UX redesign plan and begin implementing it in phases starting in 2027. The plan aims to improve content discovery and user convenience, making it easier for users to find the streamers and content they want.

Defending Earnings with Advertising… ‘Supier’ Integration Next Year

Advertising was the key to offsetting the platform’s slump. Third-quarter ad revenue reached 36.8 billion won, a 35.4% increase from the previous quarter. Driven by the expansion of gaming leagues and major events—such as FC Online and the Valorant VCT Busan Roadshow—content-based ad revenue rose 54.6% to 19.5 billion won. However, overall ad revenue decreased by 5.5% compared to the same period last year.

SOOP is expanding its client base to include non-gaming advertisers in addition to existing gaming advertisers. The company plans to officially launch “SOOPHERE,” an integrated brand combining the capabilities of SOOP and its advertising and marketing affiliates, in the first quarter of 2027 and begin integrated sales operations. CEO Lee emphasized, “There are limits to expanding the advertising business with our existing structure alone, so we will pool the capabilities of our sister companies to broaden our foundation for growth.”

Costs are also expected to rise as advertising expands. SOOP explained that its structure dictates that production costs increase in tandem with a rise in content orders—such as for gaming leagues and the AGF—and noted that if the upward trend in orders continues in the fourth quarter, content production costs could rise compared to the third quarter.

In the medium to long term, the company will maintain a dual-pillar strategy centered on the platform and advertising, but will prioritize the recovery of its core platform business. Since platform recovery will take time, the company plans to simultaneously expand its advertising business while enhancing the platform’s competitiveness to ensure profitability does not fall below previous levels.

Q3 Revenue of 105.7 Billion, Operating Profit of 14.5 Billion

SOOP’s consolidated revenue for the third quarter was 105.7 billion won, a 16.0% decrease year-over-year. Operating profit fell 59.9% to 14.5 billion won, and net income dropped 64.0% to 10.6 billion won.

However, compared to the previous quarter, revenue increased by 1.8%, operating profit by 15.0%, and net income by 21.0%. The operating profit margin also rose from 12.2% to 13.7% due to expanded advertising revenue and the easing of one-time cost burdens from the second quarter.

The company is also strengthening shareholder returns. SOOP will maintain its existing policy of paying cash dividends equivalent to at least 25% of consolidated net income, while implementing a dividend plan that meets the requirements for “high-dividend companies” under the Act on the Limitation of Special Taxation Benefits, starting with the 2026 year-end dividend.

Provided that the total cash dividend amount is not reduced compared to the 2024 fiscal year, the company plans to implement one of two options: either a dividend payout ratio of 40% or higher, or a dividend payout ratio of 25% or higher combined with an increase in the total cash dividend amount of at least 10% year-over-year.

Last September, the company canceled 306,375 treasury shares worth approximately 18 billion won. The medium- to long-term capital allocation plan, including the utilization of remaining treasury shares and dividends, is scheduled to be announced at the annual shareholders’ meeting in March 2027.

CEO Lee stated, “We will begin full-scale implementation of our key initiatives starting in the fourth quarter, and by 2027, we will demonstrate the results of these changes through the restoration of our platform’s competitiveness and improved business performance.”