[Click e-Stock] "YLAB Accelerates IP-Based Expansion Strategy"

On December 19, Korea Investment & Securities analyzed that YLAB is accelerating its expansion strategy based on intellectual property (IP). The firm did not provide an investment opinion or target price.

YLAB is a content production company that owns the largest number of webtoon IPs in Korea. In addition to webtoon production, it has established a business model that expands into secondary and tertiary works utilizing its IPs.

In the third quarter, sales reached 35.8 billion won, up 109% from the same period last year. However, the company continued to post a loss, recording an operating loss of 6.6 billion won. Kang Sion, a researcher at Korea Investment & Securities, said, "All business divisions, including webtoon and video production and others, showed growth compared to the previous year," adding, "Further performance growth is expected depending on future sales expansion and the success of new releases."

The company is also expected to continue improving its performance next year. Kang noted, "A variety of video content, including 'Terror Man,' 'Reawakened Man,' and 'True Education,' are scheduled for release," and added, "Production revenue from multiple titles, including 'Study Group' Season 2, will be newly reflected."

He also emphasized, "Sales growth, organizational restructuring, and cost reduction through the Vietnam subsidiary are expected to work together, making a turnaround to profitability possible as early as the fourth quarter of next year."