CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.96% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open platformOpen platform

WEBTOON Q3 revenue misses analyst estimates on lower Paid Content and IP Adaptations

By Reuters News


Overview

  • Digital comics platform's Q3 revenue fell 4% yr/yr, missing analyst expectations

  • Adjusted EPS for Q3 was $0.02, beating analyst expectations

  • Revenue decline driven by lower Paid Content and IP Adaptations, offset by advertising growth


Outlook

  • WEBTOON Entertainment expects Q4 revenue of $371-$381 mln, up 9%-12% constant currency

  • Company sees Q4 adjusted EBITDA of $0.0-$5.0 mln, margin of 0.0%-1.3%

  • Q4 outlook includes expected revenue from RI Games Holdings Inc. after anticipated transaction closing


Result Drivers

  • REVENUE MIX - Co said Q3 revenue decline was due to lower Paid Content and IP Adaptations, partly offset by higher Advertising

  • FOREIGN CURRENCY LOSSES - Co attributed lower adjusted EBITDA to higher foreign currency losses

  • GROSS PROFIT AND TAX BENEFIT - Co said smaller net loss was mainly due to higher gross profit and an income tax benefit, partly offset by increased marketing investment and higher foreign currency losses


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$362.78 mln

$373.72 mln (6 Analysts)

Q3 Adjusted EPS

Beat

$0.02

-$0.07 (6 Analysts)

Q3 Loss Per Share

$0.06

Q3 Net Loss

$7.47 mln

Q3 Operating Income

-$9.23 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the online services peer group is "buy."

  • Wall Street's median 12-month price target for Webtoon Entertainment Inc is $12.00, about 24.1% above its November 6 closing price of $9.67


Reuters Recommended Reads

  • Nov 9 - Israel's Monday.com Q3 revenue rises 19%

  • Nov 6 - Canada's Constellation Software Q3 revenue slightly beats estimates on acquisitions

  • Nov 9 - Online gaming platform Sohu.com Q3 revenue drops on high base effect


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.