Singapore-listed live streaming group 17LIVE Group has reported a significant net loss for the first half of 2025 (H1) despite the company’s aggressive cost-cutting measures.
A prominent player in the Asian live streaming economy, the firm saw its operating revenue tumble by nearly one-fifth, with substantial unrealised foreign exchange losses pushing it deep into the red. The results may raise questions about the long-term sustainability of its current strategy and the effectiveness of its diversification efforts amidst a challenging market.
Revenue woes and shifting sands
For H1 June 2025, 17LIVE Group posted an operating revenue of US$81.15 million, a steep 19.8 per cent decrease from US$101.16 million last year. The company attributed this primarily to a decline in “Liver live streaming” revenue, which fell from US$92.4 million to US$717 million. While “V-Liver live streaming” revenue grew 16.4 per cent to US$5.6 million, its relatively small contribution could not offset the broader decline.
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Geographically, the revenue slump was broad-based. Japan, the company’s largest market, experienced a significant drop from US$71.2 million in H1 2024 to US$56.51 million in H1 2025. Taiwan also saw a decline from US$25.5 million to US$21.4 million.
The “others” segment, comprising live-commerce and the Wave App, remained largely flat, indicating that current diversification efforts have yet to materially offset the contraction in the core live streaming business.
The cost-cutting conundrum
Despite the revenue contraction, 17LIVE improved its gross profit margin to 44.3 per cent in H1 2025, up from 41.2 per cent in H1 2024. This was largely a result of a disproportionately higher reduction in the “cost of revenue” compared to the revenue decline.
The company highlighted its “cost optimisation initiatives” across IT infrastructure, marketing, and organisational optimisation, which led to a 16.9 per cent decrease in total operating expenses, from US$40.4 million in H1 2024 to US$33.5 million in H1 2025. These efforts helped boost operating income by 79.4 per cent, from US$1.3 million to US$2.4 million.
While this sounds impressive, it is crucial to note that this improvement in operating income is primarily driven by rigorous cost management in the face of declining top-line performance, rather than robust revenue growth. This signals a defensive strategy to maintain profitability in a shrinking market, which might not be sustainable for long-term growth.
Unpacking the net loss
The company’s bottom line paints a more challenging picture. 17LIVE swung from a profit before income tax of US$3.3 million in H1 2024 to a loss before income tax of US$4.1 million in H1 2025. The shift was largely attributed to “other losses” of US$6.5 million in H1 2025, a stark contrast to “other gains” of US$2 million in H1 2024.
A key driver of these “other losses” was a substantial US$7.9 million in net foreign exchange losses in H1 2025, a significant reversal from a US$171,000 net foreign exchange gain in H1 2024. Specifically, unrealised exchange losses amounted to US$5.2 million in H1 2025, compared to nil in the previous period. Such a significant impact from currency fluctuations suggests high exposure to foreign exchange risk, potentially affecting their international operations in markets like Japan and Taiwan.
Consequently, the loss attributable to owners of the company for the period was US$4.6 million, a sharp decline from a US$1.95 million profit in H1 2024. This resulted in a negative basic earnings per share of US$(0.03) for the period.
Cash flow: A deceptive positive?
Despite the net loss, 17LIVE reported positive operating cash flows of US$4.1 million for H1 2025. The company highlighted a US$16.9 million increase period-over-period. However, the accompanying explanation states this was “primarily due to the absence of one-off payments related to the Group’s De-SPAC in 2023”. This clarification suggests that the improvement in operating cash flow is not necessarily a reflection of strengthened core operational cash generation in the current period, but rather the absence of specific large outflows that occurred in the previous year.
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For instance, trade and other payables saw a cash inflow of US$1.8 million in H1 2025 compared to a substantial cash outflow of US$22 million in H1 2024, significantly impacting the period-over-period comparison. The group’s cash and cash equivalents stood at US$82.2 million at the end of June 2025, which the company describes as “robust” and “ample liquidity”.
Strategic moves under srutiny
17LIVE has been actively pursuing acquisitions, notably acquiring 78 per cent of Japanese entertainment startup mikai Inc. in November 2024, and an additional 5.5 per cent in April 2025. The acquisition costs for mikai were approximately US$1.4 million in November 2024 and US$100,480 in April 2025. The purchase price allocation for mikai resulted in an upward adjustment of US$414,000 to provisional goodwill, bringing the total goodwill from this acquisition to US$1.9 million. Goodwill, which represents future economic benefits from acquisitions, is notoriously difficult to value and can be prone to impairment if the expected synergies do not materialise.
Furthermore, the acquisition of mikai includes a contingent consideration of US$364,000, obligating 17LIVE to acquire the remaining 22 per cent of outstanding shares if certain performance indicators are met. This represents a future cash outflow and continued acquisition risk.
The company also acquired N Craft Co., Ltd in July 2024 for approximately US$230,790.
While these acquisitions are part of the “revenue diversification” pillar of the “17LIVE Forward Strategy”, the flat performance of the “Others” segment suggests that these efforts have yet to yield significant revenue uplift, or are still in their early stages of contribution.
Shareholder returns: A capital question
In a curious move given the net loss, 17LIVE declared its first interim dividend of 1.5 Singapore cents per ordinary share (approximately US$0.011775). Notably, this dividend is stated to be “wholly a capital distribution out of the company’s share premium account,” meaning it is not paid from current or accumulated profits. Distributing capital while reporting a loss could be interpreted as a measure to maintain shareholder confidence in challenging times, but it also draws down the company’s equity base.
Adding to this, the company significantly increased its purchase of treasury shares, repurchasing approximately US$1.9 million worth of shares in H1 2025. This increased the proportion of treasury shares from 0.06 per cent at 31 December 2024 to 1.56 per cent at 30 June 2025. While treasury share repurchases can support share price and reduce share count, engaging in such activities during a period of net loss and capital distribution could invite closer scrutiny regarding capital allocation priorities.
Outlook vs. reality
17LIVE’s “group outlook” remains optimistic, focusing on “platform innovation, ecosystem expansion, and sustainable growth”. Initiatives like AI Co-Host, enhanced talent discovery and gifting algorithms, and the launch of “LiveCommerce Total Solutions” in Japan are highlighted. The company states it is “confident in achieving further revenue and profitability growth”.
However, the H1 2025 financial results present a stark contrast to this forward-looking statement. The significant revenue decline in core markets, the shift to a net loss driven by substantial forex impacts, and the reliance on cost-cutting to improve operating income suggest that these strategic initiatives have not yet translated into a tangible financial turnaround.
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The challenge for 17LIVE will be to demonstrate how these innovations and acquisitions can reverse the declining trend in its core business and translate into sustainable, profitable growth, especially in the volatile Asian tech landscape.
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