1. What Happened? Wizwick Studios’ H1 2025 Earnings Release

Wizwick Studios reported H1 2025 consolidated revenue of KRW 45.3 billion, an 89.6% increase year-over-year. However, operating income remained negative at KRW -6.75 billion, showing limited improvement. While the content business drove growth, accounting for 91.9% of total revenue, the VFX segment underperformed.

2. Why These Results? Analyzing the Factors

  • Content Dependency: Despite strong content business performance, the underperforming VFX segment limited overall profitability improvements.
  • VFX Segment Struggles: Increased competition and a slowdown in new orders contributed to declining VFX revenue.
  • Rising Financial Burden: Convertible bond issuance and losses from financial instruments raise concerns about financial stability.

3. What Now? Action Plan for Investors

While Wizwick Studios benefits from the growing K-content market and its proprietary technology, improving profitability and securing financial stability are urgent priorities. Investors should closely monitor the following:

  • VFX Recovery Potential: Assess the company’s ability to enhance competitiveness and secure new orders in the VFX segment.
  • Content Business Profitability: Focus on cost management efficiency and profitability strategies within the content business.
  • Financial Health Indicators: Monitor debt management and capital allocation strategies.