1. Fingerstory’s Q2 2025 Performance: Growth Engine Stalls

Fingerstory’s revenue for the first half of 2025 reached 8.54 billion KRW, a 6.2% decrease compared to the same period last year. Operating profit also declined by 33% to 440 million KRW. The slump in its core webtoon and web novel businesses is the primary driver of this underperformance. While a one-off financial gain boosted net income, the underlying profitability remains a concern.

2. Reasons for the Decline: Intensified Competition and Weakening Growth Drivers

  • Intensifying Webtoon Market Competition: Fingerstory is struggling against dominant players like Naver and Kakao, facing fierce competition for both readers and creators.
  • Limited IP Portfolio and Utilization: The company’s current IP portfolio of 15 titles struggles to compete, and efforts to monetize through secondary businesses are lacking.
  • New Business Uncertainties: Fingerstory’s expansion into cosmetics, exhibitions, and VR/AR content remains uncertain, with limited demonstrable success thus far.

3. Investment Implications: Strengthening Core Competencies is Crucial

Fingerstory is at a critical juncture. Investors should pay close attention to the following:

  • Strengthening Core Business Competitiveness: The company must focus on acquiring new IPs, improving platform user experience, and securing new content to retain existing users and attract new ones.
  • Concrete Plans and Tangible Results for New Businesses: Fingerstory needs to outline concrete investment plans and roadmaps for its new businesses, demonstrating tangible progress and potential for future profitability.
  • Maintaining Financial Health and Risk Management: Securing stable cash flow and managing risks associated with convertible bonds are essential for long-term stability.

4. Action Plan for Investors

Improving short-term profitability and strengthening core business competitiveness are paramount. Investors should closely monitor the company’s strategic shifts and performance, exercising caution and a long-term perspective when making investment decisions.