WEBTOON Entertainment Inc. Common stock Q3 FY2025 earnings call

Partnerships

• Partnered with Disney: Announced nonbinding partnership to develop digital comic platform with over 35,000 Disney comics, launched initial titles, and Disney acquired 2% equity.
• Short-form video: Launched video episodes on English platform and 'The Cut' in Korea; 'The Cut' hosted over 1,000 creators with some videos surpassing 1M views.
• IP Adaptations: Announced slate of 10 animated series co-production with Warner Bros. Animation.

Financials

• Adjusted EBITDA $5.1M, total revenue $378M up 8.7% Y/Y.

User Metrics

• Webcomic app MAU +1.5% globally; English platform MAU +12% Y/Y; total MAU down 8.5% due to Wattpad's government ban.

Total revenue for 2025Q3 was $378 million, up 8.7% (9.1% on constant currency basis) compared to 2024Q3. Adjusted EBITDA was $5.1 million, above guidance midpoint. By segment:

• Korea: Revenue grew 22.2% on constant currency basis. MAU was 24.6 million (-12.3% Y/Y), MPU 3.7 million (-4.9% Y/Y), ARPU +4% constant currency, paying ratio 14.9% (+116bps Y/Y).
• Japan: Revenue +2% on constant currency basis. MAU 25.3 million (+12.6% Y/Y), MPU 2.3 million (+0.2% Y/Y), ARPU $23.60 (+1.3% constant currency).
• Rest of the world: Revenue -0.7% on constant currency basis. MAU declined 11.6% Y/Y, MPU +0.8% Y/Y, paying ratio 1.6% (+20bps Y/Y), ARPU $6.80 (+1.4% Y/Y).
• English platform: Webcomic App MAU +12% Y/Y, showing momentum.

2025Q4

• Revenue: Expected decline 5.1%-2.3% constant currency, range $330M-$340M.
• Adjusted EBITDA: Expected loss range $6.5M-$1.5M, margin -2% to -0.4%.
• Infrastructure: Close to finishing updates in Q4, but some items may linger into 2026.

• Wattpad Impact: Total MAU decline due to government ban in some countries.
• IP Adaptations Timing: Pressure on revenue due to timing of IP adaptation milestones.
• Currency Fluctuations: Guidance based on current FX rates, which could impact results.

Q: Elaborate on the long-term vision of the Disney partnership and video episodes monetization metrics A: Disney partnership is long-term, early stages; video episodes early with no specific monetization metrics yet.

Q: Discuss Warner partnership timing, economic terms, and web novel MAU A: Warner partnership early, no specific timing/economic terms; web novel MAU decline due to Wattpad, focus on webcomic MAU for revenue growth.

Q: Explain 4Q guide drivers and advertising in Korea A: 4Q revenue decline due to IP adaptation timing; advertising in Korea impacted by one large e-commerce customer, but other partners strong.

Q: Talk about Disney content engagement and advertiser appetites A: Disney content engagement positive but early; advertiser interest in differentiated products, but infrastructure still being built.