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[Alpha Biz=(Chicago) Reporter Paul Lee] AfreecaTV announcement of its third-quarter earnings showed solid sales of donated economic futures, but doubts are growing over stock prices as advertising sales plunge.
According to the financial investment industry on the 4th, AfreecaTV sales in the third quarter of last year were 87.9 billion won, up 7.4% from a year earlier, and operating profit was 29.1 billion won, up 6% from a year earlier.
Platform sales, including star balloons, rose 12.3% year-on-year to 64.9 billion won. Platform sales are divided into functional items such as donation economy gifts such as star balloons and subscriptions, and paid item products such as Quickview. Among them, sales of donated economic futures were KRW 62.5 billion.
However, due to the sluggish game industry, stock prices have plummeted since the earnings announcement as advertising sales fell 23% year-on-year to 21.6 billion won when excluding consolidation. Stock industry sources also pointed out that concerns about earnings are rising.
Korea Investment & Securities maintained its investment opinion on AfreecaTV, but its target price fell 20.8% to 95,000 won.
Samsung Securities also lowered its target AfreecaTV share price by 16.7% to 100,000 won.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
