LOS ANGELES, Feb. 04, 2026 (GLOBE NEWSWIRE) -- WEBTOON Entertainment Inc. (Nasdaq: WBTN) (“WEBTOON Entertainment,” or “the Company”), a leading global entertainment company and home to some of the world’s largest storytelling platforms, today announced that it plans to report fourth quarter and full year 2025 financial results after market close on March 3, 2026. Following the release, the Company’s management team will host a conference call at 4:30 p.m. ET to review the results. A live webcast of the conf ...

WEBTOON Entertainment Conference Summary Company Overview - WEBTOON is a global storytelling hub with 24 million creators and 155 million monthly active users (MAU), primarily outside Asia, targeting Gen Z consumers aged 18-25 [3][4] - The company reported $1.35 billion in annualized revenue for 2024, with a 9% constant currency growth and positive adjusted EBITDA of 1.4% [4] Creator Engagement - WEBTOON attracts creators through its position as a category leader, offering an open-source user-generated content (UGC) platform called Canvas [5][6] - The platform has seen significant success stories, such as Rachel Smythe, who transitioned from an amateur creator to a New York Times bestselling author [8][9] - The company emphasizes a data-driven approach to identify potential hit stories, enhancing its attractiveness to new creators [9] Market Penetration and Growth - WEBTOON has a strong presence in Korea (50% market penetration) and is expanding in Japan, where it has become the number one consumer app [6][17] - The U.S. market is seen as a significant growth opportunity, with sub-5% market penetration and double-digit growth in English MAU [17][18] - The average revenue per user (RPU) in the U.S. and Korea is between $6-$8, while Japan shows much higher RPU, indicating strong potential for revenue growth [17] Partnerships and Content Strategy - WEBTOON has announced partnerships with Disney and Warner Bros. Animation, aiming to adapt popular stories into various media formats [20][21] - The company is focused on original storytelling, allowing creators to incorporate popular characters from partner franchises into new narratives [24] - The partnership with Disney includes a 2% investment stake and access to 35,000 stories from the Disney universe [23] Advertising and IP Adaptations - Advertising is seen as a secondary growth area, with a focus on expanding paid content first [33][34] - The company has a robust advertising business in Korea and is exploring rewarded video options in Japan [36] - IP adaptations from WEBTOON stories have proven successful, driving interest back to the platform and enhancing creator engagement [39] Financial Outlook and Investment Priorities - The company aims for significant growth in paid content, particularly in the U.S. and Japan, which is expected to improve revenue and bottom line [41][42] - WEBTOON plans to enhance its advertising business and leverage partnerships for long-term growth [43] - Investors are encouraged to monitor the success of partnerships and the engagement of Gen Z consumers with WEBTOON content [44] Key Takeaways - WEBTOON is positioned for growth in the digital entertainment landscape, leveraging its creator community and partnerships to expand its reach and revenue potential [3][4][20] - The focus on original content and data-driven storytelling is expected to drive user engagement and monetization [9][18][39] - The company is committed to long-term growth strategies, with an emphasis on geographic expansion and creator support [41][42]

Core Insights - WEBTOON Entertainment reported a third quarter revenue growth of 8.7%, with a constant currency growth of 9.1%, driven by Paid Content and IP Adaptations [1][6][3] - The company experienced a net loss of $11.1 million, a significant decline from a net income of $20.0 million in the prior year, attributed to lower other income and higher income tax expenses [6][3] - Adjusted EBITDA was $5.1 million, down from $28.9 million in the previous year, resulting in an Adjusted EBITDA Margin of 1.4% compared to 8.3% [6][3] Financial Performance - Total revenue for the third quarter was $378.0 million, with Paid Content and IP Adaptations contributing to the growth, while Advertising revenue declined [6][3] - The diluted loss per share was $0.09, compared to diluted earnings per share of $0.15 in the prior year [6][3] - Cash and cash equivalents stood at approximately $584.6 million, with no debt reported [1][6] Strategic Developments - The company is expanding its relationship with Disney, including a non-binding agreement for Disney to acquire a 2% equity interest in WEBTOON Entertainment [3] - WEBTOON announced plans to co-produce 10 animated projects with Warner Bros. Animation for global distribution [8] Future Outlook - For the fourth quarter of 2025, the company expects Adjusted EBITDA guidance to include $16.5 million in non-cash expenses [4]

Core Insights - WEBTOON Entertainment Inc. plans to report its third quarter 2025 financial results on November 12, 2025, after market close [1] - A conference call will be held at 4:30 p.m. ET to discuss the results [1] Company Overview - WEBTOON Entertainment is a leading global entertainment company known for its storytelling platforms and is a pioneer in the mobile webcomic format [3] - The company has transformed comics and visual storytelling for fans and creators [3] - WEBTOON Entertainment's CANVAS UGC platform allows anyone to become a creator, contributing to a diverse range of content [4] User Engagement and Partnerships - The company boasts approximately 155 million monthly active users across its platforms, including WEBTOON and Wattpad [5] - WEBTOON Entertainment has partnerships with major content distributors such as Netflix, Prime Video, and Crunchyroll, enhancing its reach [4] - Collaborations with brands like Discord, HYBE, and DC Comics further strengthen its position in the entertainment industry [4]

Financial Data and Key Metrics Changes - Revenue grew by 5.5% on a constant currency basis and reported revenue was up 8.5% compared to the prior year [10] - Net loss decreased to $3.9 million from $76.6 million in the previous year, primarily due to lower general and administrative expenses [10][23] - Adjusted EBITDA was $9.7 million, down from $20.4 million in the same quarter of 2024 [11][22] - Adjusted earnings per share was $0.07 compared to $0.18 in the prior year [23] Business Line Data and Key Metrics Changes - Paid content revenue grew by 2% on a constant currency basis, driven by strength in Japan, while declines were noted in Korea and the rest of the world [14] - Advertising revenue increased by 10.2% on a constant currency basis, with growth in Korea and Japan, but a decline in the rest of the world [15] - IP Adaptations revenue surged by 42.6% year on year on a constant currency basis, with significant contributions from Korea [16] Market Data and Key Metrics Changes - In Korea, revenue grew by 9.2% year over year on a constant currency basis, with MAU decreasing by 11.1% [18] - Japan saw revenue growth of 5.7% year over year, with MAU increasing by 2.8% [19] - The rest of the world experienced a revenue decline of 4.4% year over year, driven by declines in paid content and advertising [20] Company Strategy and Development Direction - The company is focusing on enhancing user experience through significant product updates and expanding its library with popular titles [6][7] - A partnership with Disney was announced to bring iconic comics to the platform, which is expected to drive user growth and engagement [7][31] - The company aims to maintain investment in marketing to drive future growth while improving product offerings [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong user engagement and the potential for monetization through new content and platform upgrades [9][24] - The company anticipates revenue growth in Q3 2025 in the range of 9.4% to 12.2% on a constant currency basis [24] - Management acknowledged challenges from external factors, such as government bans affecting user metrics, but remains focused on long-term growth strategies [12][68] Other Important Information - The company is experiencing a decline in overall MAU, primarily due to the impact of Wattpad, but is optimistic about future growth in this area [12][68] - Gross profit for the quarter increased by 5.1% to $87.3 million, with a gross margin of 25.1% [21] Q&A Session Summary Question: Impact of Disney partnership on user growth and monetization - Management highlighted the strategic significance of the Disney collaboration, emphasizing the potential for accelerated user growth and engagement without immediate financial impact [31][32] Question: Marketing arrangements related to the Disney partnership - Management noted the importance of reaching Gen Z consumers and attracting new users, but did not disclose specific marketing arrangements [34][35] Question: User trends and onboarding process impact - Management discussed the new onboarding process and product updates aimed at increasing user engagement and ARPU, with promising early results [39][40] Question: Advertising outlook for Q3 and beyond - Management indicated strong growth in advertising revenue, particularly in Korea and Japan, while acknowledging the need for foundational work in North America [44][46] Question: Strategy for user-generated content alongside established IP - Management stated that the collaboration with established IP complements the creator ecosystem, enhancing user acquisition and engagement [49][51] Question: Drivers of Q3 revenue growth and sustainability - Management clarified that the Q3 guidance does not include short-term impacts from the Disney collaboration, focusing instead on strong fundamentals in paid content and advertising [55][56] Question: Exclusivity of new original web comic series from Disney - Management expressed excitement about both original and existing series, noting that the collaboration acknowledges Webtoon as a leader in the format [60][62] Question: Advertising business performance excluding Wattpad impact - Management acknowledged the challenges posed by Wattpad but remains optimistic about the long-term potential of the rest of the world advertising market [68]

Core Insights - WEBTOON Entertainment reported strong second quarter results, with revenue and Adjusted EBITDA exceeding the top end of guidance ranges [1][3] - Total revenue for the second quarter was $348.3 million, reflecting an 8.5% increase year-over-year, while revenue growth on a constant currency basis was 5.5% [1][6] - The company experienced a net loss of $3.9 million, a significant improvement compared to a net loss of $76.6 million in the same quarter last year [1][6] Financial Performance - Adjusted EBITDA for the second quarter was $9.7 million, down from $20.4 million in the prior year, resulting in an Adjusted EBITDA margin of 2.8% compared to 6.3% [1][6] - The diluted loss per share was $0.03, compared to a diluted loss per share of $0.70 in the prior year [6] - Cash and cash equivalents stood at approximately $581.5 million, with no debt reported [1][6] Revenue Breakdown - Revenue growth was driven by all three revenue streams: Paid Content, Advertising, and IP Adaptations [3][6] - Paid Content revenue was $274.9 million, up 5.4% year-over-year, while Advertising revenue increased by 11.9% to $45.2 million [6][35] - IP Adaptations revenue saw a significant increase of 41.8%, reaching $28.1 million [6][35] Strategic Initiatives - The company announced a strategic collaboration with Disney to bring iconic comics from Marvel, Star Wars, and other franchises to its platform [4] - Recent updates to the English-language webcomic app aim to enhance user experience and engagement [3] Outlook - For the third quarter of 2025, the company expects revenue growth on a constant currency basis to be in the range of 9.4%-12.2%, translating to revenue between $380 million and $390 million [7]

Core Insights - WEBTOON Entertainment Inc. plans to report its second quarter 2025 financial results on August 12, 2025, after market close [1] - A conference call will be held at 4:30 p.m. ET to discuss the results [1] Company Overview - WEBTOON Entertainment is a leading global entertainment company known for its storytelling platforms and is a pioneer in the mobile webcomic format [3] - The company has transformed comics and visual storytelling for fans and creators [3] - WEBTOON Entertainment's CANVAS UGC platform allows anyone to become a creator, contributing to a diverse range of content [4] User Engagement and Partnerships - The company boasts approximately 150 million monthly active users across its platforms [5] - Its ecosystem includes WEBTOON, Wattpad, WEBTOON Productions, and other brands, enhancing its reach in the digital storytelling space [5] - WEBTOON Entertainment has partnerships with major platforms like Netflix, Prime Video, and Crunchyroll, as well as collaborations with brands such as Discord, HYBE, and DC Comics [4]

Summary of WEBTOON Entertainment (WBTN) FY Conference Call Company Overview - WEBTOON Entertainment operates as a global storytelling hub with a significant user base of 153 million active users, primarily outside Asia, despite its origins in South Korea [5][6][12] - The company has a diverse set of brands, including Line Manga, and has achieved significant market penetration in Japan, where it is the number one consumer app [10][11] Financial Performance - In 2024, WEBTOON reported GAAP revenue of $1.35 billion, with a 13% growth in constant currency [8][9] - The company achieved a 4.2% growth in total company MAU and a 19% growth in web comic app MAU in North America [9][10] - The average revenue per user (ARPU) is approximately $14 in South Korea, $23 in Japan, and around $6 to $8 in the rest of the world [34][40] User Engagement and Content Creation - Users spend an average of 30 to 60 minutes daily on the platform, exploring user-generated content from over 24 million creators [6][7] - The platform has successfully transformed amateur creators into professionals, with average earnings of nearly $50,000 per year, and top creators earning up to $1 million annually [7][8] - The company has a unique revenue-sharing model, having distributed $2.8 billion to creators, which fosters a strong creator ecosystem [15][27] Business Model and Monetization - WEBTOON's monetization strategy includes microtransactions for content access, with prices ranging from $0.15 to $0.70 per episode [17][41] - The company has a dual revenue model, with approximately 12% of revenue coming from advertising and 8% from crossover IP [43] - The ad model is still in its early stages outside Korea, with plans for significant growth in North America as the company builds its ad capabilities [46][47] Market Expansion and Growth Strategy - The company is focused on geographic expansion, particularly in North America and Japan, where it has seen rapid growth [16][36] - WEBTOON aims to leverage its unique content and creator ecosystem to capture a larger share of the global market, with a specific focus on the 18 to 25 demographic [32][38] - The addressable market is substantial, with plans to increase penetration in the rest of the world, which currently stands at less than 5% [35][28] Competitive Landscape - WEBTOON positions itself as a unique player in the market, claiming no direct competition due to its extensive creator ecosystem and global reach [66][72] - The company differentiates itself from competitors like Kakao and Pikuma by allowing creators to publish globally and providing a supportive revenue-sharing model [68][70] IPO and Future Outlook - The recent IPO was motivated by the desire to transition from a subsidiary of a South Korean tech company to a globally recognized entity, enhancing its operational capabilities and market presence [58][59] - The management expresses confidence in the company's long-term growth potential, emphasizing the importance of patience and strategic execution in building the business [60][65] Key Takeaways - WEBTOON is a rapidly growing global storytelling platform with a strong user base and creator ecosystem - The company has demonstrated solid financial performance and user engagement metrics - Future growth will be driven by geographic expansion, enhanced monetization strategies, and leveraging its unique content offerings

Financial Data and Key Metrics Changes - The company reported a net loss of $22 million in the quarter compared to a net income of $6.2 million in the prior year, driven by higher general and administrative expenses and marketing costs [13] - Adjusted EBITDA was $4.1 million in the quarter, down from $22.2 million in the same quarter of the previous year [26] - Revenue grew 5.3% on a constant currency basis, but reported revenue was roughly flat year over year [12] Business Line Data and Key Metrics Changes - Paid content revenue grew 2.8% on a constant currency basis year over year, driven by strength in Japan, offset by declines in Korea and the rest of the world [17] - Advertising revenue increased by 13.6% on a constant currency basis, with strong performance in Korea and Japan, but a decline in the rest of the world [18] - IP Adaptation revenue saw a 20.7% increase year over year on a constant currency basis, with significant growth in Japan [19] Market Data and Key Metrics Changes - In Korea, revenue grew 3.6% year over year on a constant currency basis, primarily driven by advertising and IP adaptations [20] - Japan posted revenue growth of 9.4% on a constant currency basis, with all revenue streams contributing positively [22] - The rest of the world experienced a revenue decline of 4% year over year on a constant currency basis [24] Company Strategy and Development Direction - The company is focused on building a local creator ecosystem in Japan and expanding its cross-border strategy by taking Japanese content to other markets [6] - Investments are being made in the English language platform to enhance user experience and engagement [7][10] - The company aims to leverage its flywheel of creators, content, and users to generate profitable growth over the long term [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model despite potential market downturns, citing a low average revenue per paying user [10] - The company anticipates revenue growth in the range of 2.2% to 5.2% for the second quarter of 2025 [29] - Management is closely monitoring market health and believes in the long-term growth potential of newer markets [35] Other Important Information - The company faced challenges with a security upgrade affecting search engine indexing, which contributed to a decline in web MAU [14] - The gross profit for the quarter was $71.6 million, resulting in a gross margin of 22%, down from 25.2% in the prior year [25] - The company is making significant changes to its English language web comic app to improve user engagement [60] Q&A Session Summary Question: User growth initiatives and investment cadence - Management highlighted strong long-term growth signs in newer markets, particularly a 19% increase in English-speaking platform MAU [35] Question: Importance of local content in local markets - Management emphasized the significance of local creator IP and partnerships to enhance global reach and engagement [39] Question: MAU decline in Korea and future growth potential - Management noted that while Korea has high penetration, constant currency revenue growth of 3.6% indicates potential for future growth [46] Question: Update on advertising revenue in North America - Management stated that North America advertising is still in early stages, with a focus on building foundational products for future growth [49] Question: Impact of global franchises on monetization - Management clarified that global franchises have historically contributed positively to the core paid content margin structure [53] Question: Security update on Wattpad and user impact - Management confirmed that Wattpad's issues significantly impacted total MAU declines, but it is not a major contributor to paid content revenue [66] Question: Engagement levels of licensed IP in the U.S. - Management indicated that engagement levels depend on the specific IP, but there is potential for licensed IP to drive user engagement [85]

Core Insights - WEBTOON Entertainment reported first quarter results for 2025, with total revenue of $325.7 million, a slight decline of 0.3% year-over-year, but a growth of 5.3% on a constant currency basis [1][6][3] - The company experienced a net loss of $22.0 million, compared to a net income of $6.2 million in the previous year, attributed to increased general and administrative expenses and higher marketing costs [1][6][3] - Adjusted EBITDA was $4.1 million, down from $22.2 million in the prior year, with an adjusted EBITDA margin of 1.3% compared to 6.8% in the previous year [1][6][3] Financial Performance - Total revenue of $325.7 million showed a decline of 0.3%, driven by a decrease in Paid Content revenue, partially offset by growth in Advertising and IP Adaptations [6][3] - Revenue on a constant currency basis was $343.8 million, reflecting a growth of 5.3%, supported by all three revenue streams: Paid Content, Advertising, and IP Adaptations [6][3] - The company reported a diluted loss per share of $0.17, compared to diluted earnings per share of $0.06 in the prior year [6][3] Operational Highlights - The CEO highlighted the implementation of product enhancements on the English-language platform, including AI-powered discovery features, aimed at improving user experience [3] - Major global franchises such as 'Godzilla' and 'Sonic the Hedgehog' were introduced to the platform, indicating a strategy to expand the content library [3] - The company maintains a strong balance sheet with cash and cash equivalents of approximately $550.1 million and no debt [1][6] Future Outlook - For the second quarter of 2025, the company expects revenue growth on a constant currency basis in the range of 2.2%-5.2%, translating to revenue between $335 million and $345 million [7] - Adjusted EBITDA is projected to be in the range of $0.5 million to $5.5 million, representing an adjusted EBITDA margin of 0.1%-1.6% [7]