Korea Stock Market Insights

Tag: Fingerstory

  • Global Tax Free (204620) Q2 2025 Earnings Analysis: Soaring on Tax Refunds!

    1. Q2 2025 Performance: The Power of Tax Refunds

    Global Tax Free achieved a turnaround in Q2 2025, reporting revenue of ₩79.2 billion and operating profit of ₩13.3 billion. The tax refund business, contributing 87.5% of total revenue, proved to be the key growth driver. The cosmetics segment also saw significant improvement with 61% growth.

    2. Segment Breakdown: Tax Refunds vs. Webtoons

    • Tax Refunds: Surging 46% on the back of increased international tourism and the K-beauty boom. Exchange rate volatility remains a concern.
    • Cosmetics (Swanicoco): Achieved 61% growth thanks to strengthened online presence and enhanced product competitiveness. Cost management is crucial.
    • Webtoons (Fingerstory): Revenue declined 53.5% due to business restructuring. Efforts are underway to improve profitability through platform enhancements and marketing.

    3. Investment Takeaways: Opportunities and Risks

    Opportunities: Steady growth in tax refunds, promising growth trajectory in cosmetics, and a strong financial position.

    Risks: Exchange rate fluctuations, struggling webtoon business, and potential global economic slowdown.

    4. Investment Strategies: Short-Term vs. Long-Term

    • Short-Term: Focus on the impact of the peak season for tax refunds and upcoming earnings releases.
    • Long-Term: Monitor the turnaround of the webtoon business and the results of new business investments.

    Frequently Asked Questions

    What are Global Tax Free’s main businesses?

    Global Tax Free’s main businesses are tax refunds, cosmetics (Swanicoco), and webtoons (Fingerstory). Currently, the tax refund business contributes the largest portion of revenue.

    What are the key risks to consider when investing in Global Tax Free?

    Exchange rate fluctuations and the underperformance of the webtoon business are key risks to consider. The potential for a global economic slowdown should also be monitored.

    What is the outlook for Global Tax Free?

    The outlook is positive, given the consistent growth of the tax refund business and the growth trajectory of the cosmetics segment. However, the turnaround of the webtoon business remains a critical factor.

  • Fingerstory’s Q2 2025 Earnings Disappoint: Webtoon Market Competition Intensifies

    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.

    What is Fingerstory’s main business?

    Fingerstory operates digital content platforms like ‘Mootoon’ and ‘Qtoon,’ offering webtoons, web novels, and other digital content.

    How did Fingerstory perform in the first half of 2025?

    Revenue declined by 6.2% year-on-year to 8.54 billion KRW, and operating profit fell by 33% to 440 million KRW.

    What is the outlook for Fingerstory?

    Fingerstory faces challenges due to intensifying competition and uncertainties surrounding its new businesses. The company’s future prospects hinge on its ability to strengthen its core competencies and generate tangible results from its new ventures.