Webtoon Entertainment (WBTN US) Hold: Awaiting signals for top-line growth acceleration

Research evidence excerpt

Webtoon Entertainment (WBTN US) Hold: Awaiting signals for top-line growth acceleration

platforms (e.g. short-from video),

2) disappointing speed of monetization capability improvement for ad business, and 52-WEEK PRICE (USD)

3) unclear financial impact of Disney partnership. Although the company is 23.00

onboarding re-formatted Disney content and newly created original content using

14.65

Disney IP, we cannot find a meaningful signal for earnings yet. Management targets

to launch the new digital comic platform as part of the Disney partnership within 2026 05/25 11/25 05/266.30

but we think it’s early to take positive view on this given three key risks; 1) potential Target price: 12.00 High: 21.31 Low: 8.05 Current: 13.31

launch delay, 2) unclear monetization method, and 3) possibility of cannibalisation Source: LSEG IBES, HSBC estimates

with existing Webtoon platform.

Earnings outlook: Given the better 1Q26 margin than our expectation, we now Junhyun Kim* Analyst, Korea Internet Gaming and Entertainment

forecast Webtoon Entertainment to turn to black for OP from 3Q26e (previously The Hongkong and Shanghai Banking Corporation

Limited, Seoul Securities Branch

4Q26e). However, unlike management’s expectation for double-digit growth of top- junhyun.kim@kr.hsbc.com

line by the end of this year, we forecast quarterly y-o-y sales growth of 3%/6%/8% in +82 2 3706 8763

2Q26e-4Q26e. Our 2026e-28e sales estimates are 1%/6%/10% lower than Bloomberg

consensus. A potential consensus revision cut will be a burden for the share price. * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is not registered/ qualified pursuant to FINRA regulations

Maintain Hold with a new EV/EBITDA-based TP of USD12.00 (from USD11.50):