Suseong Webtoon Increases Stake in Toomics to 70.02%... Expanding Consolidated Performance and Control
Suseong Webtoon will additionally acquire shares of Toomics, a K-webtoon company expected to enter the 60 billion KRW revenue range this year. As it becomes a major subsidiary with connected revenue and profits, a significant turnaround in performance is anticipated.
Suseong Webtoon announced that it will invest a total of 48 billion KRW by mixing convertible bonds and cash to increase its stake in subsidiary Toomics to 70.02%. The payment for securing the shares will include about 15 billion KRW in convertible bonds and 30 billion KRW in cash, which will be paid in three installments.
Suseong Webtoon currently holds a 41% stake in Toomics. When the stake increases to 70.02%, consolidated accounting will become possible, thereby increasing Suseong Webtoon's revenue and operating profit. Last year, Toomics recorded revenue of 57.4 billion KRW and an operating profit of 10.3 billion KRW. In the first half of this year, revenue was 29 billion KRW with an operating profit of 5.1 billion KRW. If this trend continues, surpassing 60 billion KRW in annual revenue this year is expected to be achievable.
Suseong Webtoon recorded revenue of 41.3 billion KRW and an operating loss of 4.1 billion KRW last year. In the first half of this year, it posted revenue of 27.2 billion KRW with an operating loss of 0.4 billion KRW. Simply consolidating the two companies' last year’s performance would amount to revenue of 98.7 billion KRW and operating profit of 6.2 billion KRW.
Regarding the expansion of Suseong Webtoon’s stake in its subsidiary Toomics, a company official stated, "This decision is based on the judgment that Korean content is driving the growth of K-webtoons, as evidenced by recent achievements such as female author Han Kang winning the Nobel Prize, the film Parasite winning an Oscar, and Squid Game and Black and White Cooking ranking number one globally on OTT platforms."
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Suseong Webtoon plans to nurture K-webtoons and digital content as the company’s future growth engines, based on stable revenue from logistics transportation machinery and equipment.
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