1. Topco Media Q2 Earnings: A Successful Turnaround

Topco Media recorded sales of KRW 14.8 billion and operating profit of KRW 2.9 billion in Q2 2025, achieving a successful turnaround. This marks a significant improvement compared to the KRW 2.3 billion operating loss in Q1. Half-year sales reached KRW 20.5 billion, showing year-over-year growth.

2. Toptoon Merger Synergy: Internalizing the Content Value Chain

The completion of the Toptoon merger in April 2025 is a key growth driver for Topco Media. By internalizing the entire process from content creation to distribution, they’ve increased business efficiency. The platform’s sales contribution of 61.6% is also a positive sign.

3. Accelerating Global Expansion: Becoming a Global Webtoon Platform

Topco Media operates webtoon platforms in global markets including South Korea, Japan, Taiwan, and North America. The high growth potential of the Japanese market, in particular, is noteworthy. However, the volatility of the KRW/USD and KRW/EUR exchange rates requires ongoing monitoring.

4. Challenges Ahead: Net Loss and Increasing Debt Ratio

Despite positive factors, the half-year net loss of KRW 24.8 billion and the sharp increase in the debt-to-equity ratio to 85.08% are concerns for investors. While these may be temporary due to merger costs and increased investment, securing future profitability and financial soundness is crucial.

5. Action Plan for Investors: A Cautious Approach with a Long-Term Perspective

Topco Media has long-term growth potential. However, the current high debt ratio and net loss pose risks. Investors should carefully monitor the effects of the merger synergy, performance in overseas markets, and improvements in financial structure before making investment decisions.