SOOP (formerly AfreecaTV) has pushed global business as a future growth pillar, expanding overseas bases and investing in localization, but it has struggled to deliver results. All three units in the United States, Thailand and Hong Kong have fallen into a state of complete capital erosion, with liabilities exceeding assets. SOOP said, however, that its overseas units are in an investment phase to expand region-specific content and user bases, and that it is focusing on laying a foundation for long-term growth rather than short-term profitability.
According to the Financial Supervisory Service's electronic disclosure system on the 1st, SOOP's three overseas units in the United States, Thailand and Hong Kong posted a combined 1.707 billion won in sales in the first half of this year but recorded a net loss of 5.159 billion won. The net loss was more than triple the sales.
By unit, the U.S. subsidiary logged 916 million won in sales and a net loss of 2.545 billion won. The Thailand subsidiary posted 612 million won in sales and a net loss of 1.607 billion won, while the Hong Kong subsidiary recorded 179 million won in sales and a net loss of 1.007 billion won. Overseas sales accounted for only 1.1% of SOOP's first-half sales (209.8 billion won).
Its financial structure also deteriorated. In the first half, the U.S. subsidiary's liability was 18.772 billion won, and the size of capital erosion reached 7.155 billion won. The liabilities of the Thailand and Hong Kong subsidiaries were tallied at 6.639 billion won and 4.495 billion won, respectively, with capital erosion of 3.533 billion won and 3.627 billion won, respectively. The three units' capital erosion came to 14.315 billion won, up about 5.8 billion won in six months. The three units' cash flow from operating activities was also -2.926 billion won in the first half, with net outflows roughly tripling from a year earlier.
SOOP, seeing limits to sustained growth in the domestic market alone, expanded overseas by establishing local subsidiaries in key markets starting with Japan in 2013, followed by the United States, Hong Kong, Vietnam and Thailand. More recently, it has taken Southeast Asia as a strategic base, reorganized its existing Thailand unit, and continued investing, including acquiring the local esports production company "FPS Thailand." Its strategy is to transplant to local markets esports content such as VALORANT and League of Legends, where it has built competitiveness in Korea, along with a streamer-centered fandom and sponsorship model.
However, as results failed to materialize, the company also moved to wind down overseas units. SOOP liquidated its Japan unit in 2024 and completed liquidation proceedings in the first half of this year for its Vietnamese grandchild company "Vina Afreeca Openstudio." Vina Afreeca Openstudio was a Vietnam unit established in 2019 by SOOP's subsidiary Afreeca Openstudio. SOOP invested about 10 billion won in 2018 to expand its esports business and secure offline cultural spaces, but performance deteriorated during the COVID-19 period.
SOOP says its overseas units are in an investment phase to expand content and user bases in each region. Early this year it integrated the domestic and global platforms and applied AI translated captions, and it is broadcasting major esports leagues such as the LCK and LPL and "Road to EWC" in multiple languages. The U.S. unit is focusing on expanding English-speaking users, the Hong Kong unit on Chinese-language localization and community operations, and the Thailand unit on local esports production and building a streamer ecosystem.
The company said it is also seeing results in attracting users. According to SOOP, Vietnamese streamer Minh Dien's billiards broadcasts recorded an average of 20,000 to 30,000 concurrent viewers in matches featuring a national athlete. The "Red Bull Dance Your Style Korea Final" held in Jun. saw 70% to 80% of total viewers come from overseas.
A SOOP official said, "Because the overseas units are in the process of expanding content and user bases in each region, we are looking at the business from a long-term perspective rather than short-term profitability," adding, "Instead of entering every country the same way, we will expand around content where demand is confirmed and streamer partnerships, and we will gradually apply various revenue models such as advertising and content businesses to strengthen our revenue base."