[Click e-Stock] "Millie's Library's Web Novel Launch a Game Changer... Performance Expected to Rise in Second Half"

On July 21, Hana Securities evaluated KT Millie's Library, stating, "Thanks to the diversification of content such as web novels, performance is expected to trend upward in the second half of the year."

Choi Jaeho, a researcher at Hana Securities, explained, "KT Millie's Library launched web novels using various super IPs starting in June, and it plans to launch webtoons beginning in September. The company is currently diversifying its overall business revenue structure." He added, "The expansion of content centered on web novels and webtoons will serve as an opportunity to expand valuation, as it will strengthen the lock-in effect by increasing customer satisfaction, attract new customers, and provide original content and exclusive IP."

Choi further emphasized, "KT Millie's Library is exclusively supplying the audio web novel version of the representative super IP 'Omniscient Reader's Viewpoint,' and the film of the same name, scheduled for release on July 23, has already been pre-sold in 113 countries worldwide. This will be the first case to demonstrate the potential for improved profit fundamentals since the web novel launch in June." He also noted, "'Omniscient Reader's Viewpoint' is a top-tier hit, with a cumulative 240 million views, more than 1.28 million interested readers, over 260 serialized episodes, and a rating of 9.95. The release of the film based on this IP is expected to create a virtuous revenue cycle for the KT Millie's Library platform, as it will lead from Noble Comics (webtoons produced using popular web novel IPs) to the production of films, dramas, and animations, to increased presence and promotional effects for the original IP, and finally to greater demand and prominence for the audio web novel."

According to Choi, "In the case of DNC Media, the animation adaptation of the webtoon 'Solo Leveling,' based on a web novel, led to an approximately 110% increase in its stock price. KT Millie's Library is also securing growth drivers through the OSMU strategy for various super IPs."

Regarding performance outlook, Choi stated, "Second quarter sales reached 21.2 billion KRW (a 19% increase year-on-year), and operating profit was 4.1 billion KRW (a 10.8% increase), with performance expected to trend further upward in the second half of the year." He analyzed, "With a 20% increase in regular subscription fees in June, the company has entered a new phase of profit growth. In addition, side benefits from telecom hacking incidents, as well as the strengthening of webtoon and web novel IPs, are also driving up the number of subscribers (Q)."

Choi added, "In addition to overwhelming market share in e-books and achieving a combined operating profit of over 10 billion KRW, the launches of web novels in June and webtoons in September will contribute to new profit creation. In particular, the success of webtoons and web novels is expected to accelerate overseas expansion, which had been limited by the existing structure of the e-book service."