Webtoon Entertainment posts Q1 loss

Webtoon Entertainment posts Q1 loss

최초입력 2025.05.14 11:31:06

Naver Webtoon CI

Webtoon Entertainment, the U.S. headquarters of South Korea’s Naver Webtoon, recorded an operating loss in the first quarter of 2025 as currency headwinds and slower revenue growth weighed on its performance.
According to Tuesday’s disclosure, Webtoon Entertainment posted an operating loss of $26.63 million during the first quarter of the year. This is based on the average exchange rate of 1,451.20 won per dollar and represents a reversal from an operating profit of $14.19 million a year earlier.
Net loss came to $21.97 million while adjusted EBITDA was $4.1 million. Revenue fell 0.3 percent on-year to $325.71 million, marking the first time since its listing in June 2024 that the company saw a year-over-year decline in quarterly revenue.
Despite this setback, revenue in advertising and intellectual property (IP) businesses rose. Advertising revenue climbed 7.8 percent to $39.9 million, while IP revenue grew 11.8 percent to $25.6 million. However, paid content sales fell 2.5 percent to $260.2 million.
Japan remained a bright spot as monthly active users (MAU) in the country rose 3.7 percent from a year ago to 21.9 million. Japan also showed the highest average revenue per paying user (ARPPU) at $22.30 per person, which outpaced Korea ($7.50) and other markets ($6.50) by far.
Fueled by strong spending, Webtoon Entertainment’s Japanese-language platform Line Manga topped app store revenue in Japan during the first quarter of 2025.
“Japan accounted for 50 percent of our first-quarter revenue,” CEO Kim Jun-koo said. “Whereas we previously exported Korean content to Japan, we are now building a local content ecosystem and expanding Japanese IP overseas as part of a cross-border strategy.”
In North America, global app revisions helped increase MAU by 19 percent. The app added AI-based recommendations and short-form video features.
Although revenue growth weakened due to a weaker won and yen, the company said performance still aligned with internal expectations. On a constant currency basis, revenue in all business segments, including paid content, ads, and IP, grew evenly, up 5.3 percent year-over-year.
“We saw balanced growth across all segments at constant exchange rates,” Kim said. “We will continue to expand our storytelling content and reach more readers globally.”
In a shareholder letter, Kim also shared second-quarter guidance with projected revenue between $335 million and $345 million, and adjusted EBITDA between $500,000 and $5.5 million.
The company expanded its IP portfolio in the second quarter of 2025 to support growth, releasing webtoon versions of global comics such as “Godzilla: Unnatural Disaster,” “Sonic the Hedgehog,” and Japanese manga including “Fullmetal Alchemist” and “A village man becomes a swordsman.”
During an earnings call, Chief Financial and Operating Officer David Lee said recent U.S. tariff policies under the Trump administration had no direct impact. “Aside from exchange rate fluctuations that are already reflected in earnings, tariffs have not affected the fundamental health of our core business,” he said.
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Webtoon Entertainment posts Q1 loss

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