Webtoon Drops 5% on Q3 Revenue Miss, $100M Gaming Bet
WBTN is trading near its 52-week low of $8.3 (8.4% above the low) on elevated volume (1.9× avg).
Summary
Webtoon is acquiring a 60% stake in game developer RI Games for ~$100M in cash, aiming to launch multiple titles based on its webcomics over four years. The deal follows the 8-K filed earlier today and adds a new growth vector, but the market is focused on the weak Q3 revenue guide of $358M-$368M, well below the $385M consensus. Q2 revenue slipped 2.8% to $338.5M, missing estimates, though adjusted EPS of $0.04 beat the expected -$0.03 loss. Shares fell 5.1% after hours to $8.97, extending a 27% YTD decline. The first game, Overgeared, is set for a global launch later this year alongside an anime adaptation in October. The investment is part of Webtoon's expansion of its global IP business.
At the time of this announcement, WBTN was trading at $9.00 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.3B. The 52-week trading range was $8.30 to $22.47. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.