Sales Reach KRW 488.9 Billion, Operating Loss Reduced to KRW 12.3 Billion
Operating Loss Sharply Decreased Year-on-Year
Partnership with Disney Announced: Disney and Marvel Hits to Become Webtoons
Line Manga Ranks No. 1 in Japan's App Marke
Webtoon Entertainment, the operator of Naver Webtoon, significantly reduced its operating loss in the second quarter of this year compared to the previous year. Revenue also saw balanced growth across all business segments.
On August 12 (local time), Webtoon Entertainment announced that its operating loss for the second quarter of this year was $8.76 million (approximately KRW 12.3 billion, based on the average quarterly exchange rate of KRW 1,403.82 per dollar). This is a substantial decrease from the operating loss of $79.09 million recorded in the second quarter of last year. Webtoon Entertainment, headquartered in the United States, is listed on the Nasdaq market.
During this period, revenue reached $348.27 million (approximately KRW 488.9 billion), marking an 8.5% increase year-on-year. Net loss for the second quarter was $3.88 million (approximately KRW 5.5 billion), while adjusted EBITDA stood at $9.66 million (approximately KRW 13.6 billion).
All business segments contributed to revenue growth in the second quarter. Content revenue increased by 5.4% year-on-year, driven by the growth of LINE Manga in Japan. Advertising and intellectual property (IP) business revenues also performed strongly in both Korea and Japan, rising by 11.9% and 41.8% year-on-year, respectively.
On the same day, Webtoon Entertainment announced that it had entered into a global content partnership with The Walt Disney Company to strengthen its content competitiveness. Under this partnership, a dedicated Disney section within the global WEBTOON English service will feature vertical-scroll webtoons based on iconic titles from Disney, Marvel, Star Wars, and 20th Century Studios. In addition to adapting existing Disney works into webtoons, approximately 100 new original webtoon series will be released sequentially.
The monthly active users (MAU) of the English webtoon application grew by 19% for the second consecutive quarter, which the company attributed to app updates such as the introduction of artificial intelligence (AI) recommendations and trailer videos.
In North America, the webtoon service adapted popular works from leading comic publishers into webtoons. Webtoon Entertainment released webtoon adaptations of flagship titles from North American comic publisher IDW, such as "Godzilla: Unnatural Disasters" and "Sonic the Hedgehog." In the second half of the year, it plans to release webtoon adaptations of five titles from Dark Horse Comics.
Adapting popular Japanese manga into webtoons and releasing them on the English webtoon service also proved popular. "Fullmetal Alchemist" and "The Old Man in the Countryside Becomes a Swordmaster" were launched as vertical-scroll webtoons on the English service, with "The Old Man in the Countryside Becomes a Swordmaster" ranking number one in sales on its release day.
LINE Manga, the local webtoon service in Japan, ranked first in revenue in local app markets during the first half of the year. According to data.ai and Sensor Tower, LINE Manga recorded the highest combined revenue in Japan’s app markets (Google Play Store and iOS App Store) for the first half of the year.
In Japan, Webtoon Entertainment is expanding its IP beyond webtoons into various genres such as dramas and animations. The Japanese drama "Marry My Husband," based on a Naver web novel, became the most-watched original drama among Japanese viewers on Amazon Prime Video. Webtoon Entertainment aims to launch 20 animation projects in Japan this year, including titles such as "Omniscient Reader," "Mercenary Enrollment," and "Eleceed."
Kim Junkoo, CEO of Webtoon Entertainment and Naver Webtoon, stated, "Webtoon Entertainment provides the best digital platform where users can enjoy a wide variety of comics, from original series to the world's largest entertainment franchises. We will continue to drive growth by offering a broad range of content and building a platform environment that makes it easier for users to discover the works they love."
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