[Click eStock] AfreecaTV, Difficult Now but...

[Asia Economy Reporter Junho Hwang] DB Financial Investment lowered the target price of AfreecaTV to 125,000 KRW on the 31st.

First, it forecasted the operating profit for Q4 this year to be 20.4 billion KRW, a 16.9% decrease compared to the previous year. This figure considers one-time costs such as the World Cup broadcasting fees estimated at 2 billion KRW and offline events resuming like the BJ awards ceremony. On the other hand, advertising revenue is expected to increase by 63.2% year-on-year due to the expansion of content-type advertisements. Platform revenue is also expected to benefit from the recent migration of BJs and traffic to AfreecaTV following Twitch's quality restrictions.

Researcher Shin Eun-jung stated, "Reflecting the increase in commission fees due to the expanded proportion of advertising expenses and the rise in content production costs, we have lowered the annual performance estimates to '19% this year and 22% next year,' adjusting the target price to 125,000 KRW."

However, she added, "Despite the advertising market downturn, there remain positive investment points such as high top-line growth centered on platform and content advertising, traffic migration from competitors, and continuous expansion of average revenue per user (ARPU)."

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