Webtoon Entertainment, the parent company of Naver Webtoon, showed growth compared to the previous year, but operating losses persisted despite rising revenue.
On March 3, Webtoon Entertainment announced its fourth-quarter and full-year financial results. The company reported annual revenue of 1.38271 billion USD (approximately 1.9647 trillion KRW, using an average exchange rate of 1,420.94 KRW/USD) for 2025, marking a 2.5% increase from the previous year. On a constant currency basis, the growth was 3.9%.
By segment, intellectual property (IP) business revenue grew 31.8%, paid content revenue rose 0.4%, while advertising revenue fell 1.1%.
Net loss for the year reached 373.39 million USD (approximately 530.6 billion KRW), with an operating loss of 63.51 million USD (approximately 90.2 billion KRW).
Fourth-quarter revenue totaled 330.69 million USD (about 478.8 billion KRW, using a quarterly average exchange rate of 1,447.82 KRW/USD), a 6.3% decrease from the same period last year. Net loss for the quarter was 336.49 million USD (approximately 487.2 billion KRW), and operating loss was 13.24 million USD (around 19.2 billion KRW). However, monthly paying users (MPU) in Korea, the U.S., and other regions increased by 3.3% and 5.6% year-over-year, respectively, driven by strengthened AI recommendations.
Webtoon Entertainment plans to focus on expanding its IP business this year. Under an agreement signed with The Walt Disney Company last year, the company will launch a new platform within the year offering 35,000 comics from Marvel, Star Wars, and 20th Century Studios, as well as original webtoons based on Disney IP.
Animated adaptations are in the works for the webtoon 'Dark Moon: Altar of the Moon,' created in collaboration with HYBE idol group ENHYPEN, and the popular English webtoon 'Lore Olympus.' The webtoon 'Viral Hit' will be adapted into a live-action Japanese drama, and the Wattpad web novel 'Chasing Red' is being developed into a Hollywood film.
In a shareholder letter, Kim Jun Gu, CEO of Webtoon Entertainment and Naver Webtoon, expressed optimism about the growth of the webtoon industry. He stated, “Last year marked the 20th anniversary of Naver Webtoon. The first decade laid the foundation for the sustainable growth of this new content format, while the next ten years built a flywheel of virtuous growth. From now on, we will focus on increasing user engagement to cultivate a strong fandom.”
For the first quarter of this year, Webtoon Entertainment projects revenue of 317 million USD to 327 million USD.
Recently, dramas and films based on webtoons and web novels have sparked heightened interest in the original works. This year, the industry expects an even larger number of adaptations from webtoon and web novel sources. Actor Park Ji Hoon, who recently rose to prominence with 'The King's Warden,' is preparing for the release of the drama 'The Legend Of Kitchen Soldier,' based on a web novel. Previous webtoon and web novel adaptations, including 'Spring Fever' and 'The Judge Returns,' have been successful, and the season finale of 'Yumi’s Cells,' a series popular in seasonal installments, is scheduled to air in April with the highly anticipated Season 3.
Works adapted from webtoons and web novels can attract original fans relatively easily, and the production process tends to be simpler and more efficient than creating entirely new stories, making this approach attractive to industry producers.
However, successful adaptations require careful attention to the original fans’ expectations. Casting actors who match the webtoon’s look, maintaining key story elements, and thoroughly understanding the source material are essential. The goal is to satisfy existing fans while also drawing in new audiences.
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