[Alpha Biz= Reporter Kim Minyoung] Ahead of its listing on NASDAQ in the United States on the 27th (local time), Naver Webtoon's U.S. subsidiary, Webtoon Entertainment (Webtoon Ent), is expected to expand its global intellectual property (IP) business to enhance profitability.

According to industry sources on the 23rd, Kim Jun-gu, CEO of Naver Webtoon, stated in a securities registration statement submitted to the U.S. Securities and Exchange Commission (SEC) that this initial public offering (IPO) marks the culmination of Naver Webtoon's efforts over the past 20 years and signifies a new beginning. He emphasized their goal of discovering and developing the next decade's biggest hit IP franchises from webtoons.

Naver Webtoon currently operates in over 150 countries, boasting a monthly active user base (MAU) of 170 million as of the first quarter of this year. In terms of financial performance, it reported revenue of $1.2827 billion (approximately 1.78 trillion won) last year, with 55.1 million content items and a global creator base of 24 million. However, securing growth momentum and improving profitability remain challenges. Despite reducing its operating loss to $36.4 million (approximately 50.5 billion won) last year from $114.7 million the previous year, Naver Webtoon has been recording annual net losses since its inception.

To address these challenges, Naver Webtoon plans to expand its IP business to increase profitability. This includes securing core IPs that can be adapted into various content forms such as movies, dramas, and games, generating revenue through licensing fees and attracting new users.

According to the registration statement, IP business revenue accounted for 8.4% of total revenue last year but grew by 31.4% year-on-year to $183 million (approximately 150 billion won). Naver Webtoon anticipates the IP market to grow to a scale of $900 billion (approximately 1,250 trillion won).

Meanwhile, Webtoon Ent's IPO price band is set at $18 to $21 per share (approximately 25,000 to 29,000 won per share), estimating a post-listing enterprise value of up to $2.67 billion (approximately 3.7 trillion won). They plan to raise up to $315 million (approximately 438 billion won) through the IPO.

 

 

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