AfreecaTV Reports Operating Profit of 88.8 Billion KRW in 2021, Up 76% Year-on-Year

[Asia Economy Reporter Seungjin Lee] AfreecaTV announced on the 10th that its consolidated annual revenue and operating profit for 2021 reached 272.3 billion KRW and 88.8 billion KRW, respectively. Compared to the previous year, revenue increased by 38.5% and operating profit by 76.2%. Net profit for the period rose by 95.4% to 70.9 billion KRW.

Revenue for Q4 2021 was 75.4 billion KRW, operating profit was 24.6 billion KRW, and net profit was 16.8 billion KRW. These represent increases of 25%, 43.4%, and 74%, respectively, compared to the same period last year. Compared to the previous quarter, the figures were 6.1%, 6.4%, and -14.8%, respectively.

The annual performance growth was driven by steady growth in donation economy gifts (such as Star Balloons and subscriptions) revenue and a sharp increase in advertising revenue. Advertising revenue grew significantly by 82% year-on-year, supported by the successful establishment of the newly launched advertising management platform 'AfreecaTV Ads Manager (AAM)' and increased demand for content-type advertisements.

In Q4 2021, steady growth in donation economy gifts (Star Balloons, subscriptions, etc.) revenue and increased advertising revenue continued to drive performance growth. In particular, the peak season effect and expanded demand for content-type advertisements led to a 23% increase in total advertising revenue compared to the previous quarter, maintaining a continuous growth trend.

Jung Chan-yong, CEO of AfreecaTV, stated, “In 2022, we plan to secure long-term growth engines that will support the next 10 years through not only growth in existing businesses such as live streaming and VOD but also the active execution of new businesses that can maximize synergy effects. We will focus on expanding our base by evolving into a 'media commerce platform' based on a community ecosystem composed of BJs and users, creating an ecosystem as a ‘virtual platform’ where users become the owners of the economic ecosystem through the metaverse platform Freeblox, and expanding into a ‘global platform’ based on e-sports and various content.”

Meanwhile, AfreecaTV decided on a 2021 year-end dividend of 730 KRW per share. The total dividend amount is approximately 8 billion KRW.

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