[Click eStock] "AfreecaTV Reflecting Twitch Effect... Target Price Raised"

Yuanta Securities analyzed on the 16th that AfreecaTV's platform revenue will increase this year due to the migration of Twitch users. The investment opinion was maintained as 'Buy,' and the target stock price was raised to 140,000 KRW.

AfreecaTV recorded sales of 100.4 billion KRW and an operating profit of 26.4 billion KRW in the fourth quarter of last year. This represents increases of 26% and 71%, respectively, compared to the same period last year. Changyoung Lee, a researcher at Yuanta Securities, stated, "Platform revenue reached 68.5 billion KRW due to an increase in paying users and average revenue per paying user (ARPPU) following the migration of Twitch streamers and viewers," adding, "Advertising revenue amounted to 29.9 billion KRW due to a surge in content advertising such as offline events by game companies at G-Star and the effect of the consolidated inclusion of CTTD."

This year, platform revenue is expected to increase due to the termination of Twitch services in Korea. He explained, "Many of the viewers migrating from Twitch are loyal paying users, so platform and advertising revenue are expected to increase," and added, "This trend is expected to become more pronounced after the Korean operation ends on the 27th of this month."

He also said, "While Afreeca platform advertising revenue is steadily increasing, demand for new forms of advertising revenue such as recent esports events and offline promotional events by game companies is rising," and "As the overall game market is expected to see an increase in new releases this year, despite the slowdown in the advertising economy, the company's advertising growth potential is expected to increase."

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