1. YLAB’s H1 2025 Performance: A Mixed Bag
YLAB recorded revenue of KRW 11.5 billion, an operating loss of KRW 2 billion, and a net loss of KRW 1.9 billion in Q2 2025. While revenue increased year-over-year, operating losses persisted. Growth in the video production segment, driven by the ‘Study Group’ drama and Netflix contracts, is positive, but high production costs are hindering profitability.
2. Analyzing the Causes of Underperformance: Rising Production Costs and Eroding Profitability
Increased production costs due to the expansion of the video production segment are the primary cause. Despite steady growth in the webtoon segment, high initial investment costs in video production are impacting overall profitability.
3. YLAB’s Future: Growth Drivers and Risks
YLAB is pursuing global market expansion through AI solution development, the establishment of a Vietnamese subsidiary, and collaboration with LINE WEBTOON STUDIO. The company is also focusing on expanding its OSMU business. These efforts could serve as future growth drivers, but it will take time to see tangible results. Accumulated deficit remains a significant challenge.
4. Action Plan for Investors: Prudent Approach and Continuous Monitoring
Short-term volatility is expected, so a cautious approach is necessary. Long-term, investors should continuously monitor profitability improvement efforts and the performance of new businesses. Pay close attention to cost structure improvements, profitability enhancement measures, and the visibility of results from AI solutions and the OSMU business.