SOOP Q3 profit plunges as streamer exodus hits donations

SOOP reported a 59.9% drop in third-quarter operating profit to ₩14.5 billion ($10.9 million). Revenue fell 16.0% to ₩105.7 billion ($79.2 million), with net profit down 64.0% to ₩10.6 billion ($7.9 million). The core issue was a steep decline in donations and subscriptions, the digital 'star balloons' that are the platform's financial lifeblood. That revenue stream fell 21.6% year-on-year to ₩64.0 billion ($47.9 million), marking the lowest quarterly figure since late 2023 and a 22% drop from its peak in early 2025.

Co-CEO Lee Min-won stated that game and esports content drove a 2.0% rise in monthly unique visitors to 6.62 million. However, he noted that "payment behavior differed by content type," meaning the increased esports traffic did not sufficiently translate into donation revenue. The company acknowledged the drop was due to reduced activity by major streamer crews and the departure of key personalities.

Top streamer exits and the gambling scandal

The departure of several top-earning streamers accounted for a significant share of the donation decline. Data from Poong.today shows SOOP's 1,000 highest-earning streamers received 27% fewer balloons in Q3 2025 than a year earlier. Nearly 30% of that total drop came from a single channel: Cheolgu, the platform's top earner. Cheolgu, whose real name is Lee Ye-jun, received 144.5 million balloons in Q3 2024 but only 13.6 million in Q3 2025, all in July, before his channel went silent.

The collapse was spectacular. Cheolgu admitted to gambling over ₩1 billion ($749,000) in a single week in the Philippines and using illegal private lenders. In August, two fellow streamers filed fraud complaints against him over approximately ₩6.0 billion ($4.5 million) in loans. Two other former top-five earners also left. Kim In-ho wound up his crew Ino Label in early August, and former professional StarCraft player Yeom Bo-sung has not broadcast since August 17. Together with Cheolgu, these three accounted for about half of the decline tracked by Poong.today.

Ad revenue holds steady despite donor drop

While donor revenue faltered, advertising provided a counterweight. Advertising revenue rose 35.4% quarter-on-quarter to ₩36.8 billion ($27.6 million). This growth was credited to increased brand campaigns around major esports leagues and large events like FC Online and the Valorant VCT Busan Roadshow. Content-based advertising revenue, tied to tournament production and game company events, jumped 54.6% from the previous quarter to ₩19.5 billion.

SOOP plans to continue leveraging major esports content to drive engagement in the fourth quarter, focusing on events like the ASL, LCK, and the League of Legends World Championship. The ad revenue, however, remains 5.5% below the figure from a year earlier, highlighting that it has not fully compensated for the donor shortfall.

Platform rivalry and future moves

The competitive pressure on SOOP is intensifying. Its main rival, Naver's CHZZK, which launched in December 2023, is aggressively expanding. According to Mobile Index data, CHZZK's mobile monthly active users reached 3.71 million in August, surpassing SOOP's 2.33 million. SOOP still led in total viewing time, at 39.24 million hours to 34.16 million. CHZZK is now rolling out new incentives, including a 'Challenger' tier launching November 1 that will pay mid-level streamers up to ₩30 million ($22,500) annually in production support.

In response, SOOP is planning service revamps and new business initiatives. The company plans to unveil a user interface and user experience revamp by the end of this year, applying it in phases from 2027. For its advertising business, it aims to officially launch an integrated marketing brand called 'SOOPIER' in the first quarter of 2027. Co-CEO Lee Min-won said: "a full recovery in platform revenue is taking longer than expected." The larger strategic question remains whether a platform reliant on direct viewer payments can successfully convert its esports audience into sustainable donation revenue before its rival's incentives draw more paying users away. The company's immediate plan is to roll out its UI and user experience revamp in phases from 2027.