[Market Focus] SOOP Plunges Over 9% as Q2 Operating Profit Declines

The stock price of SOOP, an online video service (OTT) platform company, has plummeted following the announcement of its second quarter earnings this year.

As of 9:23 a.m. on July 30, SOOP was trading at 82,400 won, down 8,600 won (9.45%) from the previous trading day.

On this day, SOOP announced in a regulatory filing that its consolidated operating profit for the second quarter of this year was provisionally tallied at 30 billion won, a 9.9% decrease compared to the same period last year. Revenue increased by 15.2% year-on-year to 116.9 billion won, but net profit was recorded at 22.5 billion won, an 18.6% decrease, due to the decline in operating profit and the impact of a weaker exchange rate. By revenue composition, the platform accounted for 72%, advertising for 26%, and others for 1%.

SOOP stated that advertising revenue grew by approximately 76% year-on-year, driven by the growth of content-based advertising and the consolidation effect from the digital advertising agency 'PlayD', which joined in March. Operating expenses increased by 27% from the same period last year, totaling 86.9 billion won.

Among the expenses, labor costs rose by 33% year-on-year to 30.5 billion won. During the same period, payment commissions (14.6 billion won) increased by 6%, and advertising commission payments (9.5 billion won) rose by 38%.

SOOP announced that, in order to secure long-term competitiveness based on its platform, it plans to focus on advancing its artificial intelligence (AI) services, refining its technological framework, and expanding into global markets, thereby laying the foundation across all aspects of technology and operations.

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