Webtoon Entertainment, headquartered in the U.S. under Naver Webtoon, saw a decreased loss in the second quarter of this year, thanks to growth in the U.S. and Japanese markets.
Webtoon Entertainment reported on the 12th (local time) that its second-quarter operating loss was estimated at $8.763 million (about 12.3 billion won, based on the quarterly average exchange rate of 1,403.82 won). This is a significant decrease compared to the operating loss of $79.09 million in the second quarter of last year.
Revenue reached $348.27 million (about 488.9 billion won), marking an 8.5% increase compared to the same period last year. The company noted that "all institutional sectors, including paid content, advertising, and intellectual property (IP) business, showed balanced growth."
The revenue from paid content, which constitutes the largest share, was $274.91 million in the second quarter, up 5.4% from the same period last year. The increase was significantly influenced by a 13.2% growth in sales in Japan, which is considered a major player in the global comic market.
Advertising revenue increased by 11.9% to $45.22 million during the same period, while IP business revenue surged by 41.8% to $28.138 million.
Webtoon Entertainment is focusing on the North American and Japanese markets.
A company representative said, "By revamping the English webtoon application and incorporating artificial intelligence (AI) recommendations and trailer videos, new webtoon users are being attracted." The monthly active users (MAU) of the English webtoon app grew by 19% for the second consecutive quarter.
According to mobile analytics firm Data.ai, the Japanese service Line Manga reached the top of the revenue rankings in the entire Japanese app market during the first half of this year. The Naver Web Novel-based Japanese drama "Marry My Husband" ranked first among all Amazon original dramas in terms of viewership from Japanese audiences, including both English and non-English speakers. There is also accelerated progress on a project to adapt 20 webtoons into animations, including "All Readers Perspective," "Entrance Mercenaries," and "Elixir."
They are also presenting webtoons tailored to local tastes through collaborations with U.S. and Japanese comic publishers. On the same day, Naver Webtoon announced a content partnership with Walt Disney, stating that it will transform popular works such as Spider-Man, Avengers, and Star Wars into webtoons. Representative works from Disney, Marvel, Star Wars, and 20th Century Studios will be produced in the vertical scrolling webtoon format.
Approximately 100 series will be gradually released through a newly established Disney exclusive section in Naver Webtoon's global platform 'Webtoon'. The first five works available for viewing will be "The Amazing Spider-Man," "Avengers," "Star Wars," "Alien," and "A Very Old Story."
They have adapted IDW's "Godzilla: Unnatural Disasters" and "Sonic the Hedgehog" into webtoons, and will also release five works including Dark Horse Comics' "The Witcher" and "The Legend of Korra" as webtoons in the second half of the year. Japanese comics such as "Fullmetal Alchemist" and "The Man from Nowhere" have also been adapted into webtoons in vertical scrolling format.
Webtoon Entertainment expects a sales growth rate of 9.4% to 12.2% (excluding exchange rate factors) for the third quarter of this year. The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) is projected to be between $2 million to $7 million.
Kim Jun-gu, CEO of Webtoon Entertainment, said, "Webtoon Entertainment provides a platform where users can enjoy a diverse range of comics, from original series to the world's largest entertainment franchises," and added, "We will build a platform environment that makes it easier for users to discover their favorite works, ensuring continued growth."