AfreecaTV Reports 19.6 Billion KRW Operating Profit in 1Q, Up 137.3%

[Asia Economy Reporter Kang Nahum] AfreecaTV announced on the 30th that its consolidated sales and operating profit for the first quarter of 2021 reached 60.9 billion KRW and 19.6 billion KRW, respectively.

Compared to the same period last year, sales increased by 48.1% and operating profit by 137.3%. Compared to the previous quarter, they rose by 1% and 14.2%, respectively. Net profit for the period was 15.4 billion KRW, up 186.2% year-on-year and 59.5% quarter-on-quarter.

In the first quarter, revenue growth was driven by significant increases in donation economy gifts (such as Star Balloons and subscriptions) and advertising revenue compared to the same period last year. The increase in the number of paying users supporting BJs was analyzed as the cause of the sales growth.

Platform advertising revenue grew by 78.2% year-on-year and 12.2% quarter-on-quarter due to the expansion of new advertisers.

AfreecaTV has been expanding platform versatility by implementing user-friendly policies such as user clips, Ad Balloon (a user participation advertising service), and a user points system in the first quarter. In addition, in March, it launched a new advertising management platform called 'AfreecaTV Ads Manager (AAM)', establishing an advertiser-friendly platform.

Jung Chanyong, CEO of AfreecaTV, stated, "In the second quarter of this year, we plan to continue expanding in three areas: business, content, and technology. We will also strengthen not only live streaming but also the VOD service area and create meaningful momentum as an advertising platform."

This content was produced with the assistance of AI translation services.