Webtoon Entertainment Warns of Q2 Sales Decline from Soft Ad Demand
Webtoon Entertainment warned that second-quarter sales will decline sequentially and fall below internal targets, attributing the shift to soft digital ad demand and moderated user spending. Management flagged weakening ad-market conditions and lower in-app purchase uptake in North America and Europe as primary headwinds to growth.
1. Sales Guidance Revision
Webtoon Entertainment issued a revised outlook for second-quarter sales, signaling a sequential decline and stating that results will fall below previously set internal targets. This marks the first time the company has cut near-term revenue expectations since its last earnings update.
2. Growth Headwinds
Management identified soft digital advertising demand in key markets and reduced in-app purchase activity as the main factors behind the sales downgrade. Slowed advertiser spending in North America and Europe, along with moderated user monetization trends, were highlighted as core challenges.