SOOP will overhaul its platform in the second half with a focus on bringing in new streamers and expanding user engagement. It will introduce a system under which streamers directly discover new creators. It will also pursue an AI-based UI and UX revamp and build an integrated marketing brand by combining advertising capabilities across affiliates.

As second-quarter platform revenue rebounded slightly from the previous quarter, SOOP judged key indicators had passed their lows. Profitability fell sharply, however, as declining advertising revenue coincided with one-off costs related to a tax audit. It plans to focus its business on growing the streamer and user ecosystem again rather than cutting costs in the short term.

SOOP said on Thursday that second-quarter operating revenue on a consolidated basis was 103.8 billion won, down 11.2 percent from a year earlier and down 2.1 percent from the previous quarter. Operating profit was 12.6 billion won, down 57.9 percent from a year earlier and down 40.5 percent from the previous quarter. Net profit was 8.7 billion won, down 61.1 percent from a year earlier and from the previous quarter. The operating margin was 12.2 percent, down 13.5 percentage points from 25.7 percent a year earlier.

The revenue decline was affected by schedule changes for game leagues and large advertising projects. Costs reflected higher fees tied to large-scale ad production volume, labour costs, streamer support payments and one-off costs related to the tax audit.

SOOP Chief Financial Officer Byeong-ho Lee (이병호) said in a conference call, "There were revenue adjustments related to the Valorant Pacific League, the PUBG ninth anniversary league and Nexon FC compared with the previous quarter." He added, "This resulted in a revenue decrease of about 1.5 billion won."

Platform revenue rebounds; shift to a structure in which streamers develop streamers

Second-quarter platform revenue was 74.1 billion won, up 0.1 percent from the previous quarter and down 12.3 percent from a year earlier. A downward trend that had continued through the previous quarter stopped, and it achieved a quarterly rebound.

Traffic improved as Minecraft server content gained popularity and key streamers returned. Revenue from donation-based economy gifts also rose by about 300,000,000 won from the previous quarter. Platform other revenue fell due to the end of sales of functional items and some products, but SOOP judged core traffic and support indicators had passed their lows and entered a stabilisation phase.

SOOP Chief Executive Min-won Lee (이민원) said, "Donation-economy revenue began to rebound in the second quarter, and traffic recovered to the year-ago level." He added, "This is a time to review the current situation and change, not only in terms of short-term performance changes but also in terms of growth of the streamer and content ecosystem."

SOOP will change how it runs the streamer ecosystem to grow the platform in the second half. It is preparing a system that will enable existing streamers to discover and foster new streamers, beyond a model in which the company directly selects and supports streamers. It will also introduce a "performance certification system" based on broadcast activity and achievements. The goal is to shift from company-led support to a structure in which the streamer ecosystem itself discovers and fosters new participants. It plans to disclose the details during the third quarter.

Asked about concerns over the growth of rival platforms, Lee said, "Competition itself is not new in the platform business." He added, "Rather than responding to the moves of a specific competitor, it is important to make the service a better service by bringing in new streamers, growing existing streamers, and advancing UI and UX and AI functions."

AI to be incorporated into UI and UX revamp by year-end; ad affiliate capabilities to be integrated

On the service side, it will 추진 a UI and UX overhaul. It plans to fix a problem in which existing functions and information are dispersed across multiple pages, making it difficult for users to find content. It will reorganise the information structure so users can more easily discover streamers and content.

SOOP said it revamped the UI during its 2024 rebranding but assessed that perceived convenience improvements were not sufficient. This time, it will distinguish necessary and unnecessary functions and rearrange screens and features around the content discovery and viewing experience. It will unveil the first result of the revamp at a year-end event for streamers and then operate it as a continuous overhaul structure rather than a one-off effort. It will also apply AI-based personalised recommendations and strengthen subtitle and chat translation features to improve user convenience and global accessibility.

Advertising revenue was 27.2 billion won, down 10.9 percent from the previous quarter and down 11.6 percent from a year earlier. Platform advertising was 2.5 billion won, down 21.4 percent from a year earlier. Content-type advertising was 12.6 billion won, down 7.8 percent, and other advertising was 12.1 billion won, down 13.1 percent.

SOOP said conservative spending in the advertising market and changes in esports schedules affected the revenue decline, but it judged weak performance could not be explained solely by market conditions. It sees the task as improving the competitiveness of its advertising products and expanding synergies with affiliates such as PlayD to broaden its advertiser base.

To that end, SOOP will launch within the year an integrated marketing consulting brand that brings together capabilities across its advertising and marketing affiliates. It will keep each company’s expertise and corporate operations, but respond to advertisers in the market under a single brand. In the short term, it aims to secure buying power to expand the scale of the platform advertising ecosystem. Over the long term, it plans to build an advertising ecosystem in which streamers and brands grow together while increasing user benefits.

It will also use the recently acquired professional volleyball team as an investment to secure sports content rather than as a simple cost. Annual operating expenses are in the range of 5.0 billion to 6.0 billion won, and 일부 of the costs began to be reflected in the financial statements from June. SOOP plans to build a revenue structure that offsets the operating cost burden through local government subsidies, sponsorships and ticket sales.

CFO Lee said, "Operating the volleyball team is not a pure cost burden but a strategic investment to secure competitiveness in sports content and bring traffic to the platform." He added that it plans to use volleyball match content to drive traffic and, over the medium to long term, link it with its advertising and commerce businesses to secure additional revenue.

From Q3, to disclose key platform indicators; treasury-share plan to be announced within the year

SOOP will also change how it communicates with the market along with its business strategy. Starting with the third-quarter earnings release, it will disclose key platform indicators so investors can judge platform growth potential and business 흐름.

It will also finalise and announce within the year how it will use treasury shares. Along with disclosing key indicators and preparing a plan for treasury shares, SOOP presented the recovery of competitiveness in its core business as a key task for boosting shareholder value.

Lee said, "It may take some time for the changes we are preparing to translate into actual results." He added, "Rather than being swayed by short-term numbers, I will focus on restoring competitiveness in the core business and making SOOP grow again."