17LIVE Group Limited (SGX:LVR) On The Verge Of Breaking Even

We feel now is a pretty good time to analyse 17LIVE Group Limited's (SGX:LVR) business as it appears the company may be on the cusp of a considerable accomplishment. 17LIVE Group Limited operates live streaming platform. On 31 December 2023, the S$142m market-cap company posted a loss of US$248m for its most recent financial year. The most pressing concern for investors is 17LIVE Group's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for 17LIVE Group

Expectations from some of the Singaporean Entertainment analysts is that 17LIVE Group is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$12m in 2024. Therefore, the company is expected to breakeven roughly a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 144%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of 17LIVE Group's upcoming projects, however, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that 17LIVE Group has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of 17LIVE Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – 17LIVE Group's company page on Simply Wall St. We've also put together a list of essential factors you should look at:

1. Valuation: What is 17LIVE Group worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether 17LIVE Group is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on 17LIVE Group’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com