Webtoon Entertainment announced an increase in its 2025 revenues.

Webtoon Entertainment Inc (NASDAQ:WBTN) announced its revenue, showing an increase of $378 million, an increase of 8.7% compared to the same period in 2024. The company shared its vision of developing a new digital comic platform in collaboration with Disney. This platform will feature over 35,000 comic books from Disney's portfolio.

Webtoon Entertainment Inc enhanced user experience by launching innovative video episodes on its English platform, rich with motion, sound effects, and voiceovers. The company experienced a 12% annual increase in its English webcomic app, indicating strong growth in English-speaking markets.

Additionally, the partnership with Warner Brothers Animation expands the content adaptation business. However, the company reported a $11.1 million net loss, declining from the $20 million net income in 2024. Adjusted EBITDA saw a significant drop from the same quarter last year to $5.1 million.

Marketing revenues experienced an 8.9% decrease, largely stemming from issues in Korea and around the world. The global monthly active user (MAU) count decreased by 8.5%, which is attributed to issues with Wattpad and government bans in some countries. The company anticipates a projected revenue decline of between 5.1% and 2.3% in the fourth quarter of 2025.

The company's CFO and COO, David Lee, stated that the Disney partnership is still in its early stages. He noted that only 7 out of the 100 planned titles have been released so far. This partnership could bring significant changes in the long term, but it's too early to provide clear information on its financial impacts. He added that there are positive developments regarding video episodes, but it is too late to predict the full effect.

Furthermore, the collaboration with Warner Brothers has the potential to serve as a source point for stories in new formats. The company highlighted that the decline in MAUs sourced from Wattpad is among the reasons, although it emphasized that it is an important content source. They are addressing issues such as search engine indexing and country bans, and they expect stabilization by 2026.

David Lee pointed out that the slowdown in revenue growth for the fourth quarter of 2025 is due to the timing of IP adaptations, and it is not driven by paid content. The company effectively manages general and administrative expenses and stated that there are no fundamental business health issues in Korea. Most of the advertising revenue comes from Korea, and the decline comes from a single e-commerce partner, while other partnerships continue to perform strongly.

David Lee expressed that interactions related to Disney content are progressing well. He indicated a positive outlook for business in the North American market and noted strong advertising demand for new platforms in Japan. Future expectations are being shaped by the partnerships with Warner Brothers and Disney. The company is particularly focusing on the growth of paid content in English-speaking markets and aims to enhance brand awareness through IP adaptations.