Soop Co., Ltd. (A067160) Earnings Call Transcript & Summary

Good morning everybody welcome to AfreecaTV Live Earnings Call. My name is BJ show host [ Cherry ] and I had the privilege of hosting this earnings call once again from last quarter. ALCON is open to those who are interested in AfreecaTV. However, please do understand that since it's an earnings call, only those who have signed up in advance will post questions via chat window. Today we are joined by Mr. Chan-Yong Jung, our CEO; Ms. Kim Jiyeon, Head of IR; and Ms. Chan Gyeong-Hui, IR Manager. Please say hello.

Good morning. My name is Chan-Yong Jung, CEO of AfreecaTV. We are going to discuss our first Q 2023 and also, we will be introducing and talking about the progress development of our plans for 1Q thank you very much.

And now moving on to Head of IR, Mr. Kim Jiyeon. And already, we have 1Q has passed. We have wonderful weather. I hope you enjoy this weather and also this earnings call. And now moving on to our IR manager, Ms. Jiyeon and it seems like one quarter has just passed by so fast. Today, I hope that you enjoy our earnings call and I wish that you will all enjoy this time. So I always reminded of that I will have to pay attention to every details until the end of this call. Now you have talked about the time we have already entered the final week of April and it seems like 3 of you look younger and more reinvigorated. It seems like what's the secret?

Nowadays, I have a lot on my mind. And in implementing our plans, there is the external environment that we are in so in order to stay ahead of others, we are really making all our efforts. I think because it's an earnings call, we are doing our best to stay positive and to do our best.

Today, how it is going to be the order of business this morning we will be discussing the earnings highlights of Q1 of 2023, and then we'll take questions. Okay, then now let us now move on to the earnings report. The floor is all yours now Ms. Jiyeon.

Hope you can put up the slide. Here are the business performance and earnings highlight of Q1 2023. Let us now start with platform business performance. We focused during Q1 on updating our platform services and as a result, we were able to update some services ahead of schedule. And as for resolution upgrade we completed the upgrade to 4000k high-resolution bit rate and also expansion of live broadcast, CCU to 100,000. Since we have a few live broadcast with over 100,000 concurrent viewership, this essentially means eliminating the need for relay rooms which was long requested by many BBs -- broadcast BJs. And also to enhance paying users convenience, we completed renewal of automatic charging of Star Balloons. We will be simplifying payment methods and add additional features to automatic charging for the number of shortage in Star Balloons within this year. On April 25, we launched platform personalization along with individual challenged mission as key updates in the first half of the year. AfreecaTV's personalization is currently centered around BJ recommendation and going forward, we will introduce advanced algorithm for recommended BJ's deep learning analysis, contents, automated tagging, et cetera. As per Q1 traffic, we saw a drop in traffic quarter-on-quarter due to the effect of World Cup. However, it is heartening and of significance is that traffic for gaming content, including LCK and Minecraft increased from Q3 numbers showing the growth of our gaming viewership community. Such quarterly traffic can vary depending on various factors. Hence, we will strive to post growth in traffic in annual terms over last year. And as it has been the first quarter 3 months into the year, we have been doing a lot of partnership with BJ's AfreecaTV signature contents have been in production. [indiscernible] these contents have been produced and released to add to the variety of the themes. We received positive feedback from subscribers. We will continuously expand such signature contents and strengthen partnership with our BJs through content production, cooperation and we intend to build these contents as our IPs to enhance our competitiveness and to solidify the ecosystem where AfreecaTV will grow alongside our BJs. As per ad sales, we witnessed conservative implementation of marketing campaigns by large game companies and delay in new title releases. However, as for platform ads, we are currently working to step up efficiency of ad products we provide and to expand the scope of new advertisers to reach out to other categories beyond gaming. We're striving to add our ads competitiveness, strengthen our competitiveness as well. This year, AfreecaTV is taking on more changes than any other time. We are carrying out tasks one by one to enhance service competitiveness which we promised to our platform subscribers and shareholders at the start of the year. We are committed to showing our progress on a longer-term basis. And we are going to show a better form of sales growth and now we move on to earnings highlights for Q1 2023.

Looking at sales. Sales in Q1 were KRW 72.7 billion Korean won, down 9% quarter-over-quarter and 3% from the same period last year. In the first quarter, platform sales was KRW 60.5 billion won, leading to higher broadcasting and viewing indicators, pushing up both paid users and ARPU 12% up QoQ and 0.8%, up YoY. And the advertising revenue for the first quarter recorded KRW 11.4 billion won with the advertisement peak season effect gone, large publishers tightening marketing funds and delay in new game releases dropping by 54% QoQ and 19% YoY. To offer some details, platform advertisement decreased by 18% quarter-over-quarter following off peak seasonality. However, thanks to continuous ad inventory efficiency improvement, more new ads landed nongame categories to grow by 20% YoY despite the trying times in the display advertising market. As for branded content of which ad sales were mainly driven by large-scale projects, they dropped by 60% compared to the previous quarter and 30% year-on-year as a result of delays in new game launches and the reduction of marketing funds. 1Q operating profit stood at KRW 18.4 billion won which was up by 19% QoQ, but down 20% YoY while recording 25.3% in operating profit margin. OP in the first quarter compared to the previous one was a result of high platform sales, lower ad sales and variable cost and also the elimination of one-off costs. 1Q net income was KRW 16.6 billion won, an increase of 429% quarter-over-quarter, but a 15% decrease YoY which can be explained by the increase in the value of securities held and the reduction in other losses due to the impairment loss impact on subsidiaries last quarter gone, pushing up net income before corporate tax expenses and the impact of additional corporate tax expenses incurred as per the previous quarter's accounting audit eliminated. The details of the operating expenses will be explained in the next slide. Next, moving on to the operating expenses which recorded KRW 54.3 billion won minus 16% QoQ and plus 4% YoY. The QoQ decrease is mainly due to a decrease in advertisement-related costs and following the elimination of one-off costs including Qatar World Cup broadcasting rights and BJ events. On the other hand, the YoY cost increase came from higher employment cost as per new business expansion and higher depreciation from server and infrastructure investment as well. Categorized by nature of the cost, the ad commission fee, which is a variable cost was KRW 5.7 billion won with fewer branded contents it recorded minus 63% QoQ and minus 26% YoY. Another variable cost, internet circuit expense stood at KRW 8.5 billion won as the platform sales quickly recovered recording, plus 19% QoQ and plus 11% YoY. And as part of fixed costs, employment costs increased by 29% QoQ and 11% YoY to KRW 17.9 billion won as a result of new hiring in 2023 and wage increase in the beginning of the year. Commission fees for content investment was KRW 5.7 billion won without broadcasting rights cost of the Qatar World Cup and the result of reorganization of the AfreecaTV esports team and Kwangdong Freecs players down by 34% QoQ and minus 6% YoY. In addition, content production cost was KRW 3 billion won which was down by 27% QoQ and up by 12% YoY, following less [indiscernible] production due to seasonality in the first quarter. Last but not least, event expenses of KRW 300 million won were executed without the event cost impact in the previous quarter which was 78% down compared to the previous quarter and 99% up year-over-year. And finally, as for the financial state, please refer to the financial statements for further details. Thank you very much.

Well, thank you for the presentation. It seems like overall it's pretty good a good result. What do you think? I think that we are off to a good start. Your thoughts?

We do see signs of positive signs. However, overall, from the stock market point of view, there are some room for improvement compared to the top line, compared QoQ didn't post a positive growth. Platform ecosystem will be on the rise again and for the Star Balloons, we did post the highest in our history. So we had the issue of Google in-app payment change and we do believe that we are overcoming that successfully. On the other hand, ad sales, ad sales if you think about it is that it's not really solid. It does go through a lot of volatility and so there was an unexpected environment and how we respond to it, I believe, will take some time. If we have a longer horizon of a year, I believe that it will show improvement.

So we have a question in the headroom. And thank you very much, BJ [indiscernible] for your Star Balloons so let me read the question. So nice to meet you. My name is Johnny. I am Yu Incheol from Citibank. So my first question is, can you give us your thoughts on the 1Q Star Balloon PU and ARPU trend? And also, what kind of prospects do you have for the second quarter and advertisement business and also for the annual guidance. So as for the first question, I think Ellen would be able to comment. So the Star Balloons in 1Q recorded the record high at AfreecaTV. So this is a very meaningful quarter for us. So ARPU, PU both has risen, the ARPU growth is higher than PU. QoQ, it has grown by 10% and game users compared to the last half of last year went down due to issues. However, it turned around to pick up. And as for paid users, QoQ 1% growth has been seen. And as for advertisement in the first quarter of this year, when we do annual planning, we do it based on the monthly performance of the previous year. And in 1Q, there were some figures that went down. And we are hoping that it will be able to pick up in the second and third quarter as well. However, the basis and the foundation was undermined and this might have to adjust the annual guidance as well accordingly. However, advertisement takes up a big portion in our AfreecaTV and also we are very committed. Within this year, we will be making efforts and additional actions to make up for what has been underachieved. Thank you very much for your answers.

So moving on to the next question. I am Kim Dong-Woo from Kyobo Securities. In the advertisement sector, there are existing domestic publishers, but I would like to know how you are making advertisement efforts to secure new advertisements. So we are sustaining the same opportunity or efforts within Korea and all the game companies have their different kind of strategies. So we're trying to be very accommodative to them. And as for the nongame categories, we are executing advertisement activities. And as for overseas published shares, I think it will take longer. Within this year, we have good plans to execute. However, it might not be possible within the first half of this year. In regard to nongame categories, branded content and large contents are not this case, but BTL or advertisements, HMG and also Samsung Electronics launched a lot of events when they have new releases. So we're trying to target these areas. And as our branded content, the gaming proportion is very high. However, the ad sales did not meet the expectations. However, the platform sales went up a lot. And the growth of the platform sales came from nongame categories and nongame companies or the nongame categories to be exact. Within the game categories, there are display advertisements, taking up the big pie. However, in the first quarter, the nongame categories did fairly well. The display advertisement efficiency has been secured and I think that's why more advertisers are advertising on our platform. In the game advertisers and the non-game advertisers also are landing more advertisements in the nongame categories. I think it's very meaningful. I'm also an avid watcher of AfreecaTV, and I'm seeing more and more a variety of advertisement. I think we're growing as a whole.

We'll take another question. It's from Mr. Kang Seoko of Shinhan Securities. As for esports traffic such as LCK, as a big competitor scaling back its Korea business, how much tailwind is AfreecaTV getting if you can put a number to it? Can we put some number to it? Yes, please go on. Overall I believe that there is a 70% to 80% increase. There has been a very positive effect to it. The portion of traffic from esports and gaming has increased. And I believe that Ellen will be providing with the numbers. The spring seasons viewership QoQ, LCK Spring Season has seen 85% jump in viewership. And not only that, we had Q4 World Cup and even compared to that we saw an uptick of 45% from last quarter. There has been a very positive effect from the competitors scaling back its Korea business. It's very interesting among that figure, we have seen new subscribers and compared to the last quarter, LCK Spring Season, there was 2.3% new subscribers. But this quarter we have seen new subscribers of 5.6% double new subscribers influx, so very impressive. Nowadays, we see many service expansion on AfreecaTV. I have seen lots of raw contents on my personalized screen. I have seen a lot of mission donations and various other features. Do we have other features currently under plan for us to provide on Afreeca TV? -- for our fans to enjoy lots of difference and engagement with BJ's, I think that's the key in games. The funding, there are -- the funding also have been contributing a lot. And game missions, the challenge missions also will affect the bottom line as well.

I was recommended with a lot of LoL contents. So I was thinking that all today I watch a lot of LoL contents, but from the user meeting, he said that what knows myself the best is data. So I think I'm trying to learn about myself through this recommended data through my service. So my service would be going on a continuous upgrading journey. For instance, if the basis is the recent 1 month or 3 months, the recommended contents would be different. We are looking at data that is actually being consumed to upgrade and update our data. I hope you continue your interest. I would like to know what is recommended as per your my service sit's a lot. It's so diversified. I get a lot of LoL content, and we also have a LoL league and also a lot of StarCraft and game-related contents are presented to me and it's also of variety because I only -- I enjoy many different kind of channels, not only for enjoyment purposes, but also for monitoring. Last time you said that I should also try a lot of different kind of content. And we also have another question. So I am Oh Dong Hwan from Samsung Securities. So led by publishers, the branded contents in 1Q went down. So what do you think is going to happen in the second quarter? And earlier a lot of BJs and streamers have been inflowing. So what is the trend on the inflow of new BJs and streamers? So there has been some undermining areas in the first quarter and it will not be able to recover right after in the following quarter. It might take more time. Some could be hold or if it's canceled, I think it would be too early to see the effect in the second quarter. So we will have to be more patient. However, in the second quarter, starting from the second quarter, we will be executing actions as per our plan. So if we look at the annual trend, we are communicating ambitious ambition. However, based on actual forecast, the target will be more conservative. And in these areas, still, we are confident that we would be able to achieve the set goals. And in the later half of this year, we will be able to have more accurate action plans, and we will be able to see the fruit of the efforts that have gone in. And also for the inflowing of new BJs and streamers, and I would like to talk about the trend of active BJs. As for new BJs, many have been migrated from Twitch. So I'm not in a place to share the exact number of new incomers however, it is gradually on the rise. So it's not like overnight, it's over 1,000 or 2,000. I have to say that the inflow is on the rise in a gradual manner, but what is more important is for them to route down on our platform, retention is more important for us. In terms of retention, starting from the last quarter of last year and the retention of the first quarter, I think we are seeing meaningful results. A case in point is the Minecraft indicators and virtual BJ's activity. We are looking at increasing traffic and also the BJs with Star Balloons and also migrated BJs we are seeing meaningful impact and phenomenon. We are looking into this trend very closely. We are trying to support them for them to stabilize and route down, and many of these are as per their requirements as well. We are providing as much technical as possible. And as for the trend of active BJ trend, QoQ, we are seeing a 3.5% increase. And [indiscernible] thank you very much for the Star Balloons. Thank you. I think you also sent a lot of Star Balloons for the last time. Thank you for showing your passion and commitment also this time. So it seems like you're everywhere and you are living up to your nickname thank you very much. And we also have a passionate fan as well.

And we also have another question. So I also have seen virtual BJs and some of my contents, they have been commenting on some of my content so it was really interesting and engaging. Our virtual BJs have been getting items from the character shops. Do you have any plans to come up -- have more -- add more features related to that? I believe we are going to provide the compatibility for shops or merchandises. We do not currently plan to jump right into getting profits from those merchandise sales. There's a company that's currently working on providing the diverse services. And they have their own avatar developments and also to use through increased compatibility to use the avatars that have been created outside. We will be focusing on those partnerships. And then we are going to move on to our next question from Mr. Lee Hyok Joong from Daiwa Securities. Can you please share with us the updates on the short-form content and user related endeavors. When it comes to VOD services, it's an area that not many analysts are interested in. But I have been purporting that VOD is an area where we will have to strengthen and it has always been one of my focal area which we have been working on. We do have strong competitors in terms of VOD. However, internally, I believe that we are seeing encouraging developments and in our cache service, we are seeing great traffic and in this update, we have on our main page, if we see the center, we have been uploading those short-form content. And I believe the numbers will be shared with Ellen. However, overall, our users our PU in terms of PUI, I believe that we are seeing very promising signs. Can I share the numbers? When it comes to MUV numbers, we calculate how many people are showing viewership, Originally, it has been 32%. However, now we are seeing a jump to 48%. We are seeing the number going up tremendously. It seems like half of the people who have come into AfreecaTVare watching our VODs. So whether it's cache or other forms of VOD -- so we have seen the uptick from 30 percentile to 50 percentile . I think -- I believe that it's going to go up to 70%, 80%. Now you have shared the numbers, indicators. I thought the weight would only go up, but the numbers are -- different numbers are going up that is which is very promising. And Ellen said that the Star balloon sales have posted record high. The current market is not really well. However, how was this possible? The sales of Star Balloons posting record high. I believe that there are various factors at play. 1Q -- if you take a look at more closely, all of the signs are very positive. The traffic, if you compare it with -- even with last quarter, if we eliminate seasonality, we are seeing traffic-wise figures very good and also the activity-related indicators for our BJs were very good as well. Viewership figures have also went up. We have seen loss of number of new content and the contents that have been preplanned by BJ's. Also, we have been supporting -- AfreecaTV has been supporting content, new contents along with BJ's. It's not just -- I believe that the overall quality of our contents have been going up. And the overall -- the key of the business is content and which would ultimately lead to more Star Balloons and as mentioned, not just with live streaming, VOD viewership is going up. So the time being lingered on our spend on our platform is also going up. There is a virtuous cycle that we're witnessing.

So if we are to talk about Star balloons, it's not only given based on a solid relationship. So lest for we are having a relationship like this. It's not like I'm going to keep on giving you Star Balloons and gifts and tips. However, based on the existing relationship, something new should be tried otherwise, the users would not be generous with Star Balloons. The 1Q BJ activity has also been improved because at the end of the day, if the BJs keep doing what they're doing, they will not be able to grow, they need to make new attempts and also we at AfreecaTV need to support this environment. And there's also another external inspiring that the Google market share has dropped to 64%. When I previously mentioned it in February was 69%. However, this dropped to 64%. And the first or preliminary target is to drop the dependency to 50%. And I think this also contributed to higher Star Balloons and circular routing payment and I think our efforts paid off -- so thank you very much for clarifying the situation. There are more contents and the quality goes up and as for this, people are more willing to pay. So I have -- I'm a fan of a singer if the sun doesn't talk to me, I will not do anything. So what the least that I could do would be to promote the singers that I love. We have another question in the chat room. Nice to meet you. My name is Choi Yong Hyun from KB Securities. My first question is, can you please comment on the April traffic trend and Q2 traffic forecast and also the 2022 quarterly content investment execution plan. The trend of the traffic. It's hard to forecast or predict traffic at all. But up to this point up to March, I think the atmosphere is very good and the traffic drop has been turned around and picking up. We are reassured and we're hopeful and in the second quarter up to April, the trend is in line with that of the first Q. And we have many incoming streamers and also very active star BJs depending on their activity, I think that will influence traffic, but we're optimistic. And the content investment execution plan, to comment on the investment plan. For investment, we are focusing on signature content production. So what I mean by signature contents would be in collaboration with BJ's to produce original content. Just last -- yesterday, the fighter MMA content would be the best example of signature content. So the fighter Kim Dae Han came back as a main title of the fighter. So it has set the scene this way. In StarCraft programmer, Action had trained for 3 months to participate as a fighter. And there are also mature fighters that have been invited to pull off 9 matches -- and the concurrent viewers were approximately 100,000. So Poong Joon who used to be a gamer also called out the fighter program so I think that also contributed to the high numbers of fuels, but the BJ [indiscernible] new attempt. It was entirely new from what he used to do so and not only to the fans and followers, but the other BJs rooted for him. Hong Gu will be doing a broadcasting today and I think he will receive a lot of congratulations from his followers. So I would like to say this, our BJs have a lot of passion areas of interest. The thing for me as well, so they have bucket list. I hope this would be able to be manifested in content and also be infused into signature contents. Investment to signature contents will be sustained. And this way, we will be able to have our hands on better quality contents as well. And as for signature content, if we pay a lot of broadcasting rights to purchase, right? And if we are to do it with existing professionals, that will not be the good idea. But we are looking into [indiscernible] it is not so difficult. And the concurrent viewers were 100,000 that is awesome. However, even with this high traffic, the resolution was still maintained. So I was very impressed -- then next, I think we should talk about resolution. Personalization and updating has been very prevalent. And some users are requiring for 1,400 picture resolution. They are very interested in better resolution. So this would be focusing on the casual games. But for 1,440 resolution, I think this might push up cost and this could not be the priority for our technical development. So as for 1,440 picture resolution, since it's within this year's business plan, it should be done, however, with less priority. So that's the current plan. There are priorities that we will follow. So please, I'll be patient. Thank you very much, Mr. [indiscernible] for giving us an added balloon, 27 well that is a lot so thank you very much. Mentioning add balloons, I remember it reminds me of the live commerce. So it's also depending on the BJ influence. However, the product itself needs to speak for itself. And it's very good that the conversation is very natural. So I tried it. I thought it was so good, and some people left comments. Terry, you should be more candid. I honestly thought that it was very good. So I personally would like to know how and in which direction the live commerce market would develop into. For live commerce, the volume is increasing as well as sales. The ongoing efforts on live commerce, AfreecaTV is working as an agent. So the commerce business will not be able to grow too big. And through [indiscernible], we have linkage service with added balloons and live commerce would be to set up the foundation. So we are making attempts, but personal brand could be monetized and we are trying to think of phase how to commercialize it. There has been many live commerce content and shows up to this point. And [indiscernible] will be doing or we'll be selling vehicles cars, but there were some issues so we will have to wait on this. However, the product of live commerce and the volume itself is growing. So if you have any questions, please leave them in the chat room. If not, I will ask my questions that are coming to my mind.

I am also a fan of baseball. I have a brother who plays baseball. So recently, I read an article there would be -- we will be broadcasting youth -- also, this is -- the presidential office has also shown interest on our efforts. So I believe that the intention was right and not only baseball, youth baseball but in other sporting events as well. And also billiards we have been taking over a company to collaborate on this aspect. And if I don't believe that spending lots of broadcasting rights to pay for the broadcasting right is not sustainable. Rather than having this one-off big effect, I believe that as a platform, we will have to have our original content. So we have to look into genres and business areas where we can have our own IP. So one of it would be billiards -- in that respect, we will have professional games, professional matches and amateur matches as well. Based on the fandom and supporters, we are going to expand on that. I also believe that if you provide more broadcast of amateur games, it would be very interesting. Do you also play the billiard? When I was attending college, I also have -- I did a part-time job at billiards. I can play the pocket ball of 150. And pocket ball is quite difficult, in terms of difficulty, it's pretty high. There's an entry barrier for the first time in newcomers to play and how, what angle, how hard you hit, to hit a ball and to have it to land at a specific spot so that it could go the way that's pretty interesting. So we are going to try -- also host one of these games as well. Years ago, I think in the past, we have seen more people trying our pocket ball. Additional question. Do you have any updates on Vietnam service launch? It is by KB Mr. Choi Yong Hyun we are currently also expanding in Vietnam, making efforts to make progress in our Vietnam expansion -- so I believe that our goal is to have the launch in the first half of this year. And other areas that we're looking into the Vietnam expansion is -- right now is currently in form of a publishing partnership contract. We also are looking into other joint partnership projects. Sporting is one of the area. I believe that within the first half of this year, we'll be able to launch the service and we will also be able to bring about new projects and areas to you. Last earnings call, you talked about business expansion and you're looking into fishing, fishing shows. Yes, I believe that we have made ways in fishing -- having more interest in our fishing content. We have created a league regarding fishing and those who are interested in fishing compared to the other sports is very limited. So we have -- that's why we started GFL. And with time, I believe that it will establish itself with a game -- with fishing league and fishing contents and we are going to keep pushing our efforts. And what about other countries expansion other than Vietnam? Other Southeast Asian countries, so for Vietnam, it's more of a publishing contract. In Japan and Thailand are countries that we are currently making efforts for expansion. Japan, we're seeing positive indicators, metrics, developing live commerce is also an area or e-commerce. Valorant is pretty popular. And so when it comes to Japan services, we are getting positive signals. Businesswise, we are having -- forming a close partnership in Thailand. Starting with Thailand and other adjacent countries are -- we are seeking partnership with.

We are not seeing any additional questions being on the chat room right now. Do you have any other comments.

Starting from Ellen. As a been mentioned, the Twitch streamers migration and onboarding on Afreeca TV. So I mentioned that the retention is very important and their activity and activeness is key. Let me give you some numbers as well. The retention is good, which means the new streamers are building a fan base higher traffic and also Star Balloons and better profit. And this will lead to better retention. So in terms of this or having said what I said, the migrated streamers from 4Q and also doing good in 1Q, the Star Balloons QoQ. The Star Balloon number has risen by 40% so that's why I think that it's a very positive meaningful situation -- that's why they will have to route down on our platform to monetize from it. This is a very important part, as you know. And the fan-based subscribers and having a community is also very important. And the evidence of this community is translated into higher Star Balloons. And the existing BJs, established BJs and new BJs have made requests, functionality, [indiscernible], donations and also random [indiscernible] and also [indiscernible] have been received. So we hear you. We executed -- we are executing them as per our strategy and also the elimination of relay room has been responded to. I think we are making very meaningful steps for BJs, existing BJs and the new BJs will be supported by us and we will make sure that we create an environment for that. I think the service is very improving and you're also focusing a lot on service. We also have another comment Lee Hyunji from Eugene Investment Securities. You said that the PU is higher. Did the PU go up from light users? Or was it from high-paying users. So as for the increase of paid users, it's not like we are able to track them individually. However, based on our overall analysis, ARPU is higher than the increase of PU so the high-paying user ARPU will also go up naturally. And the overall traffic, when we compare it to the new users, I think there are more paying users coming from the light users. So I think we received enough questions, so we should wrap it up. No, we shouldn't. It's so unfortunate that we're not getting more questions from the chat room. I should prepare more questions myself. So any last comments from [indiscernible]. Our BJs the activities on the platform is all different depending on who you are, and there's also a seasonal or periodic trend. So [ Cherry ] did not do any broadcasting starting from the end of February. So I was going to ask you, why don't you? But I know that there are all personal reasons, and it's not that you can do broadcasting 24/7, it's even impossible to do so. So as for all of our BJs and among our virtual BJs, I know that you might be exhausted so I hope that the BJs would be able to maintain a good functioning cycle and I think a lot will depend on us creating a good platform and an environment. And also 2 more things. In my case, in terms of the platform, the stable atmosphere and platform sales recovery is very eye-watering to me. After the World Cup, I thought or I was concerned that the traffic would plummet. However, fortunately, it has been sustained and it's very -- I'm very grateful. The Google market payment has been taken out, and I made a decision to do so. I wasn't able to sleep for a couple of days, I was thinking maybe I made the wrong decision. However, seeing the indicators recover, I'm very impressed. And as you know, in terms of the platform, it goes down and then it peaks or it gradually goes down, in most cases, more gradual. It gradually wanes or goes up. So platform recovery is a very optimistic signal that I'm happy to see. And last but not least I know that you have some concerns regarding the advertisement. However, I think if we take a look at it, the advertisement sales proportion among our total sales proportion is not so big. The sales should go up as high as 50%. And this is my ambition supported by our commitment and ambition could not be quantified. If I am to fight with someone, I cannot calculate every move. I just -- if the fight starts, I just fight, and I do my best. And it's the same for advertisement. As has been mentioned in relation to the guidance, KRW 10 million in sales, Korean won is a goal that we need to achieve and the advertisement business is very dependent and advertisers and it shows a lot of fluctuation. That's why we need to have a very precise plan. We need to make sure that we leverage existing sales, and we also have to have a plan B as to what should happen when it doesn't work out. And also, we also should have an expansion plan. So all of these different factors are moving in towards -- or moving towards our plan. Samsung Electronics S23 showcase has been done, and we are making new attempts, and we are seeing new results in the advertisement side. And in order to build it up, we are continuing M&A efforts as well. Advertisement business should not be evaluated on a quarterly basis. We need to look at the overall trend and also look into what really matters so I would like to ask for your continued support and patience.

And now I also promise I pledge that I'll do more broadcast AfreecaTV on AfreecaTV platform. Your last word. Thank you very much for your words. And I would also like to thank our viewers and investors and analysts and look forward to seeing you in our next earnings call.

And it was a tremendous opportunity for me to chat with you and also thank you so much for your support and donation. We had Q1 2023 earning calls. Thank you very much for your viewership. I was BJ [ Cherry ]. Goodbye.