Solar stocks surge after Treasury tightens clean energy tax credit rules
Investing.com -- WEBTOON Entertainment Inc. (Nasdaq: WBTN) shares fell sharply by 21% following a preliminary fourth quarter revenue report that fell short of consensus expectations. The company, a major player in global entertainment and storytelling platforms, disclosed its unaudited financial results for the fourth quarter and full year 2024, which ended on December 31, 2024.
The company reported a total revenue of approximately $351 million for the fourth quarter, which was below the consensus estimate of $356 million. Despite achieving a 12% revenue increase on a constant currency basis from the previous fiscal year, the company’s net income range was reported to be between $(107) to $(101) million, and adjusted EBITDA was in the range of approximately $(4.5) to $(3.5) million for Q4.
WEBTOON Entertainment’s CEO, Junkoo Kim, expressed satisfaction with the full year of growth and profitability in 2024, highlighting a significant increase in revenue and a second consecutive year of adjusted EBITDA profitability. However, the company faced headwinds in the fourth quarter due to the strengthening of the US dollar against the Korean Won and the Japanese Yen, currencies that represent a significant portion of the company’s total revenue. Political turbulence in Korea also had a short-term impact on engagement.
Actuarial losses on retiree benefits, which are a non-cash, non-operating expense, along with currency translation effects and a shift in revenue mix in Korea, primarily affected the company’s adjusted EBITDA for the fourth quarter. The actuarial loss had an estimated $6 million impact on adjusted EBITDA during this period.
WEBTOON Entertainment plans to provide a more detailed discussion of its financial results during its earnings call scheduled for after market close on February 25, 2025. The management team will host a conference call, and interested parties can access a live webcast or an archived version for up to one year at the company’s investor relations website.
The stock’s decline reflects investor reactions to the preliminary financial figures and the challenges faced by the company in the last quarter of 2024. As WEBTOON prepares for its detailed earnings call, investors and analysts will be looking for further insights into the company’s strategy and outlook for the future.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.