1. Kidadlistudio Q1 2025 Earnings: What Happened?

Kidadlistudio reported revenue of 51.8 billion KRW, operating profit of 1.9 billion KRW, and net income of 0.6 billion KRW for Q1 2025. Revenue slightly increased year-over-year, while both operating and net income turned positive.

2. Reasons for the Return to Profitability: Why the Improvement?

  • Steady growth in the webtoon business and significant growth in the video content business drove the revenue increase.
  • Aggressive cost-cutting measures appear to be the primary driver of the return to operating profitability.

3. The Struggling MD Business: Why Is It a Problem?

The MD business continued to struggle in Q1 2025. Kidadlistudio needs to address the increasing competition in the content market and adapt to evolving consumer trends.

4. Action Plan for Investors: What Should You Do?

  • Short-term perspective: There is potential for positive stock momentum, but investors should closely monitor the performance of the MD business and the declining net income trend.
  • Long-term perspective: Monitor the timing of investment returns, restructuring of the business portfolio and strengthening competitiveness, and the company’s strategy for responding to changes in the macroeconomic environment.