Suseong Webtoon Reports Record-High Cash Generation Capability

K-webtoon company Suseong Webtoon announced on May 7 that its consolidated operating cash flow for the first quarter of this year reached KRW 7 billion, marking an all-time high.

This represents a 519% increase compared to KRW 1.13 billion during the same period last year. It is also more than eight times higher than last year's quarterly average of KRW 780 million.

The company explained that this achievement was driven by Suseong Webtoon's unique business model, which includes the direct operation of the global paid webtoon platform "Toomics," an overseas sales ratio exceeding 80%, a low-cost structure with minimal fixed costs, and a hybrid revenue model that combines regular subscriptions and advertising.

Suseong Webtoon directly operates its own paid webtoon platform, Toomics, in the global market, while also adopting a hybrid distribution structure by listing select major content on external platforms. Through web-based payments on its own platform, the company can reduce external app market fees and maintain high profit margins.

Distribution through external platforms contributes to attracting new readers and expanding the brand. The company is diversifying its revenue portfolio across platforms. This strategy reduces dependence on a single distribution channel and enhances the stability of revenue streams.

The high proportion of overseas sales is also noteworthy. Over 80% of Suseong Webtoon's total revenue is generated overseas. The company has established a base of paid users in major language markets such as the United States and Europe. With a purely foreign currency revenue base and the recent upward trend in exchange rates, the stability of actual cash inflows is also being strengthened.

The company is also demonstrating competitiveness in terms of cost structure. Based on outsourced content production and a platform-centered distribution structure, Suseong Webtoon bears less fixed costs and a lower proportion of production costs compared to its peers. The company enjoys a relatively low cost of sales and selling, general, and administrative expenses, resulting in a significant operating leverage effect. In addition, monthly subscriptions and advertising revenues are combined, and a revenue diversification strategy is being pursued to reduce dependence on specific revenue sources.

The cash generation structure is also positively impacting the company's financial stability. Since the second half of last year, consolidated results have steadily improved, and the surplus in operating cash flow has continued through the first quarter of this year. This cash inflow base provides a financial foundation to support long-term growth strategies such as securing content, expanding global marketing, and entering new markets.

A Suseong Webtoon representative said, "Our main revenue is generated from overseas paid subscriptions," and added, "We have established a structure that enables direct monetization from the point of payment through our own platform, Toomics."

The representative continued, "We are maintaining stable cash generation based on our paid user base," and added, "We plan to continue pursuing strategies to expand profitability."