1. SOOP Q2 Earnings: Significant Miss, Earnings Shock

SOOP’s Q2 2025 preliminary results showed a decline across the board, with revenue at ₩116.9 billion (-3% vs. estimates), operating profit at ₩30 billion (-9%), and net profit at ₩22 billion (-19%). While revenue increased compared to Q1, the miss against market projections indicates a continuing trend of slowing growth.

2. Analyzing the Underperformance: Slowing Platform Growth, Weak PlayD Synergy

  • Intensifying Platform Competition: The emergence of competing platforms and market saturation are contributing to the slowdown in SOOP’s platform revenue growth. Securing differentiated content and strengthening platform competitiveness are urgent tasks.
  • Lack of PlayD Synergy: The anticipated synergy effects from the PlayD acquisition have been minimal. Challenges in post-acquisition integration and a lack of a clear synergy strategy are cited as contributing factors.
  • High Debt Ratio: Funding the PlayD acquisition has increased SOOP’s debt ratio, adding to its financial burden. This could constrain future investments and business expansion.

3. External Factors: Rising Interest Rates, Exchange Rate Volatility Add Uncertainty

External factors such as rising interest rates in the US and Europe, and fluctuations in the KRW/USD and KRW/EUR exchange rates, may have also impacted SOOP’s performance. Higher interest rates, in particular, could lead to increased financing costs and reduced profitability.

4. Action Plan for Investors: Proceed with Caution

Given SOOP’s weak Q2 performance and the uncertain external environment, investors should exercise caution. A thorough review of SOOP’s growth strategy, the potential for PlayD synergy, and its plans for improving its financial structure is recommended before making any investment decisions.