Webtoon Enter, 2Q Sales Up 8.5% YoY... "Will Continue to Grow"

[Financial News] Naver Webtoon headquarters Webtoon Entertainment achieved a performance with a 8.5% increase in 2Q sales compared to the same period last year, as all business sectors such as paid content, advertising, and IP business grew evenly.
Webtoon Enter announced on the 12th (local time) that it recorded 2Q sales of 348.27 million dollars (approximately 488.9 billion won, based on the average exchange rate of 1,403.82 won per quarter), and an operating loss of 8.76 million dollars (12.3 billion won).
Sales increased by 8.5% compared to the same period last year. The deficit was reduced by nearly 90% as fixed costs in management and operation sectors decreased.
Sales of paid content increased by 5.4% to 274.9 million dollars (385.9 billion won), driven by growth in the Japanese market. Advertising and IP business sales were recorded at 45.2 million dollars (63.4 billion won) and 28.1 million dollars (39.4 billion won), respectively, growing by 11.9% and 41.8% compared to the same period last year due to strong performance in Korea and Japan. On the same exchange rate basis, advertising grew by 10.2% and IP business by 42.6%.
Japan's Line Manga continues its growth by ranking first in total app market sales in Japan for the first half of the year. The app restructuring effect, such as the introduction of AI recommendations and trailer videos (New & Hot), led to a 19% growth in monthly active users (MAU) of the English webtoon app for two consecutive quarters.
The webtoonization of popular works by North American representative comic publishers such as IDW Dark Horse Comics continues, increasing the influx of new users.
Webtoon Enter released IDW's 'Godzilla: Unnatural Disasters', 'Sonic the Hedgehog', and plans to release five works from Dark Horse Comics, including 'Critical Role: Mighty Nein Origins', 'The Legend of Korra', and 'The Witcher' in the second half of the year.
In Japan, the vertical scroll webtoon release of 'Fullmetal Alchemist', 'Country Bumpkin Uncle Becomes a Sword Saint', and 'Country Bumpkin Uncle Becomes a Sword Saint' recorded the top sales on the English webtoon service on the launch day.
In particular, the global content partnership with The Walt Disney Company was signed on this day, further strengthening the global market position. Through the Disney exclusive section within the global platform 'Webtoon' English service, Disney, Marvel, Star Wars, and 20th Century Studios representative works will be produced as vertical scroll webtoons. 'The Amazing Spider-Man', 'Avengers', 'Star Wars', 'Alien', and 'A Very Old Story' can be enjoyed first. In addition to the existing comics webtoonization, about 100 new original webtoon series will be released sequentially.
Japan's 'Line Manga' is achieving results in the Japanese market and expanding global IP into dramas and animations. The Japanese drama 'Marry My Husband', based on Naver Web Novel, recorded the highest number of viewers among Amazon Original dramas in Japan, including both English and non-English. In Japan, 20 animation projects, including 'Omniscient Reader's Viewpoint', 'Mercenary Enrollment', and 'Eleceed', are targeted to be launched this year.
Kim Jun-koo, CEO of Webtoon Entertainment and Naver Webtoon, said, "Webtoon Enter provides the best digital platform to enjoy a variety of comics, from original series to the world's largest entertainment franchises," and "We will continue to grow by building a platform environment that allows users to easily discover their favorite works while providing a wide range of content."

yjjoe@fnnews.com Yoonju Cho Reporter