Webtoon Entertainment Inc. is bringing Iron Man, Spider-Man, Darth Vader and Beauty and the Beast to life in vertical web panels, reimagined in the Korean webtoon style.
The deal covers classic comic series, graphic novels and all-new original webcomic series created in a cinematic vertical canvas built for smartphones.
This marks the first time that foreign content has turned to a Korean platform for storytelling after years of global platform giants like Netflix Inc. thriving on a binge of Korean content, including the Squid Game series.
The win comes after the Korean web comic platform has emerged as a global leader in the digital storytelling realm following the successful expansion of its original intellectual properties (IPs) and active mergers and acquisitions.
“Our collaboration with Webtoon will allow us to expand our beloved franchise universes on a best-in-class digital platform,” said Daniel Fink, senior vice president and head of Digital Innovation at Disney Consumer Products.
“We look forward to engaging with their dedicated, global user base while welcoming future fans to experience a redefined form of Disney storytelling that will have a lasting impact in the digital comics space.”
Yongsoo Kim, chief strategy officer and head of Global Webtoon, said, “Together, we’re bringing this legendary storytelling to a new generation of mobile-native comic fans, while giving existing fans a new way to experience series and characters they love.”
NO. 1 GLOBAL STORYTECH COMPANY
Upon its launch later this month, Webtoon will start offering Amazing Spider-Man (2022-present), Avengers (2012), Star Wars (2015), Alien (2021) and Disney As Old As Time: A Twisted Tale.
The Disney webcomics will be available in a dedicated section of the Webtoon English-language app.
(Courtesy of Webtoon Entertainment) Los Angeles-based Webtoon and Disney reached the deal after about a year of negotiations, according to people familiar with the deal.
Disney considered several global platforms for webtoon distribution before settling on the Korean digital comics platform, aiming to capture a share of the rapidly growing global online comics market, particularly among younger readers.
Established in 2005, Webtoon is the parent company of Seoul-based Naver Webtoon Corp., one of the world’s largest online comics platforms. It is 60.64% owned by Naver and 24.44% by LY Corp., formerly known as Line Yahoo.
Globally, Webtoon has around 155 million monthly active users from over 150 countries and 24 million creators, according to the company.
Its other subsidiaries include LINE Digital Frontier Corp. in Japan and Wattpad in Canada, a digital comics and novel platform. It also operates Webtoon Productions, Studio N, Studio LICO, Webtoon Unscrolled, LINE MANGA and eBookJapan, among others.
Webtoon shares soared more than 40% in after-hours trading in the US on Tuesday, as investors cheered the strategic partnership with Disney, as well as better-than-expected second-quarter results.
(Courtesy of Webtoon Entertainment) EARNINGS RECOVERY
On the same day, the digital comics platform operator reported $348.3 million in revenue for the second quarter ended in June. The result, which was up 8.5% from the same period of last year, came above the top end of its guidance range.
On a constant currency basis, revenue rose 5.5% to $338.7 million, driven by increases across all three revenue streams – paid content, advertising and IP adaptations, according to the company.
Its net loss narrowed sharply to $3.9 million from $76.6 million in the prior-year quarter, largely due to lower general and administrative expenses related to the company’s initial public offering costs incurred last year, the company said.
“We are pleased to report strong second quarter results, with both revenue and adjusted EBITDA coming in above the top end of our guidance range,” said Webtoon founder and CEO Kim Jun-koo.
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) reached $9.7 million with a 2.8% margin, compared to $20.4 million and a 6.3% margin in the previous year.
For the third quarter, Webtoon projects constant-currency revenue growth of 9.4% to 12.2%, or $380 million to $390 million at current foreign exchange rates. It also expects adjusted EBITDA of $2.0 million-$7.0 million, representing a margin of 0.5-1.8%.
Write to Eun-Yi Ko at koko@hankyung.com Sookyung Seo edited this article.
