WEBTOON Entertainment reports Q2 revenue of $338.5 million

WEBTOON Entertainment reported second-quarter revenue of $338.5 million, representing a 2.8% decrease year-over-year on a reported basis, though revenue rose 5.2% at constant currency. The company’s net loss widened to $14.6 million, compared to $3.9 million in the previous year, which CFO David Lee attributed to increased marketing investments and higher income tax expenses.

Despite the widened loss, adjusted EBITDA of $5.5 million exceeded the company’s guidance. Gross profit rose 1% to $88.1 million, and gross margin expanded to 26%. CEO Junkoo Kim stated that the company is shifting toward a strategic direction focused on AI-powered platform features and expanding its off-platform intellectual property (IP) adaptation business.

Regarding user engagement, global monthly active users increased by 0.5% year-over-year. While app monthly active users declined, monthly paying users increased by 1.8%, driven largely by growth in the Korean market. The company expects to return to double-digit revenue growth on an exit-rate basis by the end of the fourth quarter.