WEBTOON Entertainment Inc. announced its financial results for the second quarter of 2024, revealing a slight revenue increase to $321 million, up 0.1% from the previous year. Despite growth across various segments, the company faced significant challenges due to the weakening of the Korean won and Japanese yen, which negatively impacted revenue when converted to U.S. dollars. On a constant currency basis, however, revenue grew by 11.1%.
The company’s net loss widened to $76.6 million, largely attributed to one-time expenses related to its recent IPO and increased stock-based compensation. Adjusted EBITDA, a measure of profitability excluding certain costs, improved significantly, reaching $22.4 million, marking the second consecutive profitable quarter.
Key growth drivers included a 1.0% rise in paid content revenue, or 11.5% on a constant currency basis, supported by successful user conversion strategies in Japan and the rest of the world. Advertising revenue declined by 3.6% but showed a 2.3% increase on a constant currency basis, thanks to significant gains in Japan and emerging markets in North America. IP adaptations saw a similar trend, with a 3.7% decline translating to a 24.9% growth on a constant currency basis.
Looking ahead, WEBTOON anticipates revenue growth of 12.5%-14.5% on a constant currency basis for the third quarter of 2024, with adjusted EBITDA expected to range from a $10 million loss to $7.7 million loss, reflecting ongoing investments and market conditions.
