Analysts Expect 17LIVE Group Limited (SGX:LVR) To Breakeven Soon

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. The S$192m market-cap company announced a latest loss of US$248m on 31 December 2023 for its most recent financial year result. Many investors are wondering about the rate at which 17LIVE Group will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

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 expect the company to post a final loss in 2023, before turning a profit of US$12m in 2024. The company is therefore projected to breakeven around 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 144% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for 17LIVE Group given that this is a high-level summary, though, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. 17LIVE Group currently has no debt on its balance sheet, which is rare for a loss-making 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:

This article is not intended to be a comprehensive analysis on 17LIVE Group, so if you are interested in understanding the company at a deeper level, take a look at 17LIVE Group's company page on Simply Wall St. We've also compiled a list of key 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.