Korea Stock Market Insights

Tag: Web Novel

  • 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.

  • Milli’s Library Stock Forecast: Is the Wobbly Growth a Buying Opportunity?

    1. What’s Happening with Milli’s Library?

    Milli’s Library recorded sales of KRW 40.69 billion, operating profit of KRW 4.7 billion, and net profit of KRW 3.8 billion in the first half of 2025. While operating and net profit exceeded market expectations, revenue fell slightly short. The company maintains robust growth while securing new growth engines such as expansion into the webtoon/web novel market and AI technology adoption.

    2. What’s Driving Milli’s Library’s Growth?

    • Overwhelming brand awareness and rich content
    • B2BC channel growth leveraging KT Group synergy
    • AI-based service enhancements and improved user experience
    • Business diversification through expansion into the webtoon/web novel market

    3. What’s the Future Hold for Milli’s Library?

    Despite the positives, investors should be wary of several risk factors.

    • Low revenue share outside of e-book subscriptions
    • Potential subscriber churn due to price increases
    • Ongoing legal risks
    • Dependence on major customers

    4. What Should Investors Do?

    Milli’s Library presents both growth potential and risks. Investors should carefully consider the following factors when making investment decisions.

    • Actual revenue contribution from the webtoon/web novel business
    • Impact of price increases on subscriber numbers and ARPU
    • Future developments of legal risks
    • Cost efficiency management

    Frequently Asked Questions

    What is Milli’s Library’s main business?

    Milli’s Library’s main business is its e-book subscription service, and it recently expanded into the webtoon/web novel market.

    What should investors be aware of when investing in Milli’s Library?

    Investors should consider potential subscriber churn due to price increases, legal risks, and low revenue share outside of e-book subscriptions.

    What is the outlook for Milli’s Library?

    While there is growth momentum through AI technology adoption and expansion into the webtoon/web novel market, investors need to carefully monitor the risk factors.