WEBTOON's Q2 2025: Unpacking Contradictions in User Growth, Advertising Strategy, and Monetization

User growth and engagement strategy, advertising revenue growth, focus on user growth and monetization strategy, and advertising growth and strategy are the key contradictions discussed in WEBTOON Entertainment's latest 2025Q2 earnings call.



Revenue Growth and Geographical Performance:
- WEBTOON Entertainment reported revenue growth of 5.5% on a constant currency basis for Q2 2025 compared to the prior year.
- The growth was driven by strong performance in all revenue streams, particularly in Japan and Rest of World, despite challenges in Korea due to government bans on Wattpad.

User Growth and Engagement:
- The English-language WebComic app MAU increased by 19% for the second consecutive quarter, indicating strong user engagement and platform enhancements.
- The growth was attributed to significant product upgrades, new content initiatives, and increased user activity.

Advertising and IP Adaptations Revenue:
- Advertising revenue grew by 10.2% on a constant currency basis in Q2, driven by increases in Korea and Japan, despite a decline in Rest of World due to Wattpad impacts.
- The IP adaptations business saw a 42.6% year-on-year increase, driven by revenue recognition for the remarried Empress and a strong pipeline of anime projects in Japan.

Strategic Partnerships and Content Expansion:
- WEBTOON Entertainment announced a strategic partnership with Disney, bringing iconic Marvel, Star Wars, and Disney comics to the global English-language app.
- This collaboration aims to attract new users, enhance user engagement, and create new content within the existing IP framework, supporting long-term growth.