1. Soosung Webtoon’s Q2 Results: Achieving Profitability
Soosung Webtoon reported revenue of 32 billion KRW, operating profit of 3.1 billion KRW, and net profit of 100 million KRW in Q2 2025, marking a successful return to profitability. Revenue increased by 3.6% and operating profit by 6.9% compared to the previous quarter. The return to net profit is particularly encouraging, raising expectations for improved financial health.
2. Drivers of Profitability: Steady Growth of the Webtoon Business
The primary driver of this turnaround is the steady growth of the webtoon business. Since acquiring Toomics, Soosung Webtoon has experienced growth through increasing platform revenue and its IP utilization strategy. Currently, four webtoons are in development for drama adaptations, and further revenue generation through the OSMU strategy is anticipated.
3. Investment Considerations: Financial Risks and Increased Competition
Despite the positive results, investors should remain cautious of financial risks such as high debt-to-equity ratio and liquidity issues. The intensifying competition in both domestic and international webtoon markets could also hinder Soosung Webtoon’s growth.
4. Investment Strategy: Cautious Optimism, Monitor Financial Improvements
Soosung Webtoon holds growth potential within the expanding webtoon market, but the company faces the challenge of securing financial stability. Investors should monitor future financial statements for signs of debt reduction and capital reinforcement. It is also crucial to observe the company’s strategies for strengthening IP competitiveness and improving profitability amidst intensifying competition.