[17LIVE] Achieved solid profitability in the first half of 2024; “17LIVE FORWORD
STRATEGY is launched to drive business growth; strategic initiatives are being developed to maximize shareholder value
*17LIVE Co., Ltd.*
Press release: August 13, 2024
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[17LIVE] Achieved solid profitability in the first half of 2024; “17LIVE FORWORD STRATEGY is launched to drive business growth; strategic initiatives are being developed to maximize shareholder value
・ Achieved high profitability with net profit of USD 1.9 million in the first half
・Operating income for the second quarter of 2024 was US$3.5 million ・Reflecting the resilience of the group’s business model, gross profit margin remained strong at 41.2% in the first half
・
With a strong financial position, with cash and cash equivalents of USD 85.6 million as of June 30, 2024, the Group is well positioned for growth through acquisitions.
・“17LIVE FORWARD” focuses on strengthening platforms, diversifying revenue sources, and strategic and business alliances to promote growth.
STRATEGY” announced
・Currently developing strategic initiatives to maximize shareholder value
17LIVE Group, an SGX listed company that operates the live streaming platform “17LIVE”
Limited (hereinafter referred to as “17LIVE”, “we”, or “our group”) today announced its financial results for the six months from January 1, 2024 to June 30, 2024 (hereinafter referred to as the “first half of 2024”). Net profit for the first half of 2024 was USD 1.9 million, compared to a net loss of USD 118.2 million in the same period last year (“H1 2023”), representing a significant revenue improvement and a significant milestone.
Furthermore, our group will continue to develop the 17LIVE Forward, which will be the driving force to the next stage of growth. We are formulating a capital market strategy to improve long-term shareholder value.
*Highlights of the first half of 2024*
* Financial Highlights *
In the first half of 2024, the Group posted operating revenue of USD 101.1 million and maintained a strong gross profit margin of 41.2%. Operating expenses decreased by 19.3% as a result of the Group’s continued efforts to optimize costs to improve operational efficiency, including optimizing IT infrastructure, marketing, and payment channels.
Operating profit for the first half of 2024 was recorded at USD 1.3 million, and the Group recovered from a net loss in the first half of 2023 to a net profit of USD 1.9 million in the first half of 2024. In the quarterly comparison, the operating loss for the three-month period from January 1, 2024 to March 31, 2024 (hereinafter referred to as the “first quarter of 2024”) was US$2.1 million, compared to the operating loss from April 1, 2024 to June 30, 2024. Operating profit for the three months leading up to the end of 2024 (hereinafter referred to as the “2nd quarter of 2024”) improved to USD 3.5 million. In addition to further strengthening the Group’s operating profit growth momentum, the Group’s cost optimization efforts yielded positive results.
As of June 30, 2024, the Group’s financial position remains strong, with US$85.6 million in cash and cash equivalents and a strong financial base with no borrowings. As of the fiscal year ended December 31, 2023 (hereinafter referred to as “FY2023″), we had cash and cash equivalents of US$102.7 million, which was due to the Group’s initial public offering (hereinafter referred to as This was due to fees and tax expenses attributable to one-time costs related to the IPO or De-SPAC.
“Thanks to our team’s dedication and the effectiveness of our strategic initiatives, we were able to achieve strong profitability. Particularly in the second quarter, we focused on our strategic focus on driving revenue growth and optimizing operational efficiency. This represents significant progress and fruition from months of work on this matter.”
(Comment from 17LIVE Part-time Chairman of the Board Joseph Hua)
Revenue from the Group’s V-Liver business more than tripled compared to the same period last year, from USD 1.5 million in the first half of 2023 to USD 4.8 million in the first half of 2024. This significant increase indicates the potential for the V-Liver business to grow as an important source of revenue.
*Business update*
The Group also announced the appointment and promotion of Zhang Honghui to Director and Chief Executive Officer (CEO), effective August 13, 2024, and the reappointment of Joseph Hua to Non-Executive Chairman of the Board. Jean has over 12 years of experience in venture capital investing and is a member of Vertex.
He has been with the Group for over 7 years. Vertex Technology Acquisition, the first special purpose acquisition company listed on the Singapore Stock Exchange
Corporation Ltd. Director and CEO, 17LIVE in December 2023
Led the successful management integration with Inc. He was then seconded to the Group from Vertex in April 2024 and has worked closely with Joseph and the team to drive operational improvements and various strategic initiatives.
In conjunction with his appointment as Director and CEO of 17LIVE, Jean joins Vertex.
He ends his role as Managing Director of Investments at Holdings. He joined Vertex Growth on August 13, 2024.
He was appointed as a part-time advisor as a venture partner of Management. As Non-Executive Chairman of the Board, Joseph will continue to provide guidance on the overall strategic direction of the Group and work closely with Jean to provide a range of advice.
“I am very pleased with the progress we have made as a company, delivering strong profitability and generating positive business growth momentum. I am pleased to announce that since joining us as a consultant, Jan has worked closely with me and the team, demonstrating outstanding leadership skills and contributing to our turnaround in the second quarter of 2024. Ta.
Given his deep experience in venture capital, business and investment management, and his familiarity with our business from De-SPAC, we are confident that our company will continue to maintain its strong momentum under his leadership. I’m sure. As non-executive chairman, I look forward to supporting him in our company’s continued success.” (17LIVE
Comments from Joseph Hua, Chairman and Part-time Director)
During the first half of 2024, 17LIVE will be partnering with Singapore’s leading media, entertainment and content company mm2 Asia. Limited (hereinafter “mm2”) and Taiwanese venture capital AppWorks Ventures Co. Ltd. (hereinafter referred to as “AppWorks”). The MOUs with mm2 and AppWorks were concluded with the aim of strengthening business in the entertainment field in Southeast Asia and increasing investment opportunities.
Within the group, we are optimizing our technology stack, reorganizing business units to develop core business pillars in high-potential and high-performing markets such as Japan, Taiwan, and Hong Kong, and reorganizing middle and top-level management within the organization. We have also focused on efforts to improve operational efficiency and promote profit growth through various operations and initiatives, such as strengthening our business.
*17LIVE FORWARD STRATEGY*
17LIVE FORWARD STRATEGY is 1.
To strengthen the platform with advanced technology and a strong community of streamers, 2. Diversify revenue streams by developing new products and businesses derived from the platform, and 3. To build a sustainable live streaming ecosystem across Asia. Our core focus is on building strategic and business partnerships. By focusing on these core areas, 17LIVE aims to solidify its position as a leader in the live streaming industry, delivering diverse, high-quality content that captivates both viewers and top talent. .
“17LIVE FORWARD highlights the strategic importance of these initiatives. STRATEGY is a balanced and comprehensive growth plan to take our Group to new heights. 17LIVE FORWARD
STRATEGY reflects our commitment to innovation and sustainable growth to maximize shareholder value. Through this strategy, 17LIVE will strengthen its unique value proposition, while reinforcing our commitment to seize new opportunities, deliver exceptional live streaming experiences, and create lasting value for our communities and partners. We are prepared.”
(Comment from 17LIVE Director and CEO Jiang Honghui)
Our group is 17LIVE FORWARD
Embodying the essence of STRATEGY’s three strategic pillars, its near-term growth will focus on core platform business through acquisition and retention of new users and streamers, development of a comprehensive V River business model, and more strategic and We believe that growth will be driven by key growth business drivers, including the establishment of business partnerships.
*V Liver Business: A catalyst for future business transformation* 17LIVE FORWARD
STRATEGY positions the V Liver business as one of its immediate growth drivers. Considering the dynamic growth of the V Liver market and the growth of the global and Japanese anime sector, 17LIVE’s deepening of its V Liver business makes strategic sense.
The global anime market, valued at US$31.23 billion in 2023, is steadily expanding at a compound annual growth rate (CAGR) of 9.8% (*1), with Japan accounting for over 40% of global anime revenue. (*2). At the same time, the Japanese V-Tuber (online entertainers who use CG-generated virtual avatars to broadcast videos and live streams on Youtube) market, which is a subset of the V-Liver market, is also rapidly growing, and the current market size is approximately This has grown to US$500 million (*3).
By entering this vibrant, high-growth virtual content space, 17LIVE leverages not only its established platform, but also Japan’s deep-rooted anime culture and rapidly growing interest in virtual content, to create a promising and evolving field. Our group can grow significantly in this market.
Additionally, in the process of growing the VLive business, the group’s established platforms will naturally be technologically enhanced to position 17LIVE as the most important platform for viewers and potential talent. This will expand our virtual character intellectual property (IP) portfolio and maximize the business potential of this rapidly growing industry.
*Improve shareholder value*
17LIVE FORWARD
In conjunction with STRATEGY, the Group is also exploring strategic initiatives to enhance shareholder value through innovative and advanced capital market initiatives. These efforts include partnering with various financial institutions and exploring strategic options to develop viable and sustainable capital markets strategies to drive long-term shareholder value. However, it is not limited to these.
“In our continued commitment to maximizing shareholder value, 17LIVE actively pursues a variety of strategic initiatives to generate strong returns for our shareholders. We are committed to taking comprehensive steps to identify and implement the most effective approaches to capital policy and ensure that our strategic decisions are consistent with the best interests of our shareholders. (Joseph Hua’s comment) Details of various strategic initiatives under the Capital Markets Strategy are currently being reviewed and evaluated internally.
*Outlook*
Analysts foresee continued growth in the global live streaming market, with the potential for significant growth expected to reach a CAGR of 23.0% from 2024 to 2030, driven by technological advancements and innovation. I think that sex is expected. In particular, augmented reality (AR) and virtual reality (VR) technologies will further advance the live streaming market and transform it into a new experiential journey (*4).
With the tailwind of these technology and consumption trends, our group has launched 17LIVE FORWARD.
We are confident that STRATEGY will allow us to capture the
ever-growing demand and make the most of growth opportunities (*1).
*1 https://www.grandviewresearch.com/industry-analysis/anime-market *2 https://www.researchnester.com/reports/anime-market/6101
*3 https://www.yanoresearch.com/en/press-release/show/press_id/3304 *4
https://www.grandviewresearch.com/industry-analysis/live-streaming-market-report
This press release is published by 17LIVE Group, available on the SGX-ST website and our website.
Please read this in conjunction with other disclosures issued by Limited on August 13, 2024.
*DBS Bank Ltd. and Vertex Technology Acquisition Corporation Ltd. and 17LIVE Inc., served as the sole issue manager during the business integration.
* ■About 17LIVE Co., Ltd.*
An entertainment company that operates 17LIVE (Ichinana), one of Japan’s largest live distribution platforms, with over 50 million registered users worldwide (as of February 2023). 17LIVE, whose mission is to “enrich connections between people,” allows anyone to express themselves as a live streamer anytime, anywhere, and listeners (live streaming viewers). We are developing an interactive live streaming platform that allows you to directly support the live streamers. Additionally, since 2019, we have been rolling out the live commerce solution “HandsUP,” which has been implemented by over 400 companies and brands.
“17LIVE” Official HP: https://jp.17.live/