WEBTOON Entertainment Inc. reported a revenue of $348.3 million for the second quarter of 2025, marking an 8.5% increase from $321.0 million in the same period of 2024. For the first half of 2025, the company generated $674.0 million in revenue, up 4.1% from $647.7 million year-over-year. The growth in revenue was primarily driven by increases in Paid Content and Advertising, which rose by 5.4% and 11.9%, respectively. However, the company recorded a net loss of $3.9 million for the quarter, a significant improvement compared to a loss of $76.6 million in the prior year, reflecting a 94.9% reduction in losses.
In terms of operational metrics, WEBTOON's monthly active users (MAU) decreased by approximately 7.6% year-over-year to 156.1 million, with notable declines in Korea and the Rest of World segments. The monthly paying users (MPU) stood at 7.4 million, with a paying ratio of 4.7%, slightly up from 4.6% in the previous year. The company also reported an increase in Paid Content Average Revenue per Paying User (ARPPU) to $12.4, an 11.1% growth compared to the same quarter in 2024, attributed to strategic efforts to enhance user engagement.
Strategically, WEBTOON has been active in expanding its offerings and capabilities. The company completed the acquisition of Wattpad in June 2023, which is expected to enhance its content library and user engagement. Additionally, WEBTOON has been focusing on its IP Adaptations segment, which saw a 41.8% increase in revenue to $28.1 million for the quarter, driven by successful adaptations of popular titles. The company also reported a significant reduction in general and administrative expenses, down 53.2% to $65.0 million, largely due to decreased stock compensation expenses.
Looking ahead, WEBTOON aims to continue its growth trajectory by enhancing its marketing efforts and expanding its content offerings. The company plans to leverage its existing cash reserves of $581.5 million to support its operational needs and potential acquisitions. However, it acknowledges the challenges posed by market conditions and competition, which may impact its future performance. The management remains optimistic about the potential for revenue growth, particularly in the IP Adaptations and advertising segments, as it seeks to strengthen its position in the global digital content market.
About WEBTOON Entertainment Inc.
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