Suseong Webtoon, Q1 Sales 15.6 Billion KRW... 80% Increase YoY

Exterior view of Suseong Webtoon company.

Suseong Webtoon announced on the 9th that its sales in the first quarter of this year reached 15.6 billion KRW, an increase of about 80% compared to the same period last year. Additionally, both affiliated and subsidiary companies succeeded in turning profitable, marking a turnaround opportunity.

According to the company, the increase in demand for logistics equipment driven by benefits from the Serious Accident Punishment Act led the sales growth, and in February, it achieved sales of 4.3 billion KRW, recording the highest monthly sales. It is expected that government support projects related to electric forklifts will continue in the second half of the year, leading to steady sales in this area.

Furthermore, sales increased due to the rise in semiconductor deliveries for DDR5 by Future Hightech, a subsidiary specializing in semiconductor inspection equipment. This trend is expected to continue in the second half of the year, resulting in favorable performance. The company anticipates annual sales of 35 billion KRW and an operating profit margin exceeding 25% once the supply of HBM testers is confirmed next year.

It is also positive that the performance improved due to sales recognition from the airing of the 14-episode MBC drama "Wonderful World," starring Kim Nam-joo, an actor affiliated with The Queen AMC, a subsidiary in the entertainment division of Suseong Webtoon. The company expects increased sales from advertising orders in the future and is reportedly reviewing other new projects.

The stable sales and excellent profitability of Toomics, responsible for Suseong Webtoon's webtoon business, also positively influenced the sales growth trend. Toomics achieved an operating profit of 2.3 billion KRW in the first quarter of this year. The profit before corporate tax was 3.6 billion KRW, resulting in Suseong Webtoon recording an equity-method profit of 900 million KRW. Earlier this year, Suseong Webtoon held an extraordinary general meeting and approved the agenda to change its company name from "Suseong Salvation" to "Suseong Webtoon."

However, Suseong Webtoon recorded a net loss of about 1 billion KRW in the first quarter of this year. This was due to the reflection of a 2.2 billion KRW amortization of the convertible bond adjustment account. This is a non-cash expense under accounting regulations, and excluding this from non-operating expenses, the company recorded a profit exceeding 1.1 billion KRW.

A representative of Suseong Webtoon stated, "With the stabilization of the logistics equipment business this year and the expansion of webtoons into the global market, both revenue and profit growth will continue. As the semiconductor industry improves and the entertainment business linked to Suseong Webtoon IP is also planned, we will achieve the highest sales ever since the company's establishment."