PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
Revenue expansion led by Nintendo distribution and character/card merchandise has continued from the 2025 return to profit through the first half of 2026.
Q2 2026 consolidated revenue hit a record 124.5 billion won, with operating profit surging year over year
2025 annual operating profit recovered to 9.95 billion won (2.9% margin) after a weak 2024
Distribution-heavy revenue structure with the merchandise segment accounting for roughly 75% of consolidated sales
OSMU strategy combining licensed IP (One Piece, Shin-chan, Doraemon, Studio Ghibli) with in-house IP
March AGM approved an in-kind treasury-share dividend while a director compensation cap proposal failed for lack of quorum
Daewon Media directly operates animation creation and planning, character licensing, trading card games (TCG), game/toy distribution, and film/exhibition event businesses, while subsidiaries Daewon Broadcasting and Daewon Entertainment run cable/IPTV channels and Daewon C.I. handles comic publishing and webtoon/web novel production.
The largest share of the business structure is the merchandise distribution segment, covering Nintendo Switch console/software distribution and toy, card, and capsule-toy sales.
According to the company, the distribution segment accounted for roughly 75% of consolidated revenue in the first half of this year, with product sales including game consoles/software and character toys making up 70.1% of first-half revenue.
The company is a major console-game distributor in Korea, handling Nintendo Switch and Microsoft XBOX products and operating directly managed 'Nintendo Daewon Shop' stores. It also runs a dual B2B/B2C distribution structure for global toy and figure brands such as Bandai, Takara Tomy, and San-X.
On the IP side, the company holds overseas licenses for One Piece, Crayon Shin-chan, and Doraemon, along with the sole official Studio Ghibli business rights in Korea, operating the Dotori Forest MD store and Kori-Ko Cafe, while also expanding globally in North America, Japan, and China through in-house IP such as Armored Saurus and Mujik Tiger.
Having produced Korea's first TV animation, 'Wandering Kachi,' in 1987, the company has a historical identity as a comprehensive content producer spanning creative animation and comic publishing.
However, as distribution revenue grows in share, the overall revenue character is shifting from that of a content creator toward a licensed-merchandise distributor, a structural feature that is also a point of debate.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩87.3B | ₩200M | 0.2% |
| 2025Q3 | ₩92.9B | ₩3.7B | 4.0% |
| 2025Q4 | ₩103.9B | ₩4.9B | 4.7% |
| 2026Q1 | ₩102.5B | ₩1.9B | 1.9% |
| 2026Q2 | ₩124.5B | ₩7B | 5.6% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩303.5B | ₩14.3B | ₩5.6B | 4.7% | 5.9% | 51.5% |
| 2023 | ₩316.1B | ₩13.8B | ₩6.2B | 4.4% | 6.2% | 58.6% |
| 2024 | ₩256.4B | ₩1.6B | -₩1.6B | 0.6% | −1.6% | 58.2% |
| 2025 | ₩342.8B | ₩10B | ₩5.5B | 2.9% | 5.4% | 72.2% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Consolidated revenue in 2025 came to 342.85 billion won, sharply higher than 256.36 billion won in 2024, and operating profit recovered to 9.95 billion won (2.9% margin) from just 1.62 billion won (0.6% margin) in 2024.
Net income attributable to owners turned positive at 5.49 billion won in 2025, a reversal from a net loss of 1.57 billion won in 2024. In 2022 and 2023 the company posted relatively healthy operating margins of 4.7% and 4.4% respectively, before margins deteriorated sharply in 2024 and then recovered again in 2025.
On a quarterly basis, operating profit was only 186 million won in Q2 2025 but improved progressively to 3.69 billion won in Q3 and 4.88 billion won in Q4, then jumped to 1.95 billion won in Q1 2026 and 6.99 billion won in Q2 2026.
Q2 2026 revenue of 124.5 billion won rose sharply from 87.3 billion won in Q2 2025, with the company citing sustained interest in the Nintendo Switch 2, growth in random figure and capsule toy distribution, and the successful hosting of the global card culture expo 'KCCF' as key drivers.
In Q1 2026, revenue reached 102.5 billion won with operating profit of 1.95 billion won, driven by consumer interest in Nintendo's next-generation console, popular title launches, and demand pulled forward ahead of announced price hikes on existing consoles.
Trailing four-quarter net income attributable to owners (Q3 2025 through Q2 2026) totaled 9.28 billion won, notably above full-year 2025 net income and indicating a continuing improvement trend.
Even so, given the distribution-heavy revenue structure, the pace of operating margin improvement remains relatively limited compared to the pace of revenue growth.
Korea's character industry is expanding its consumer base across all age groups and broadening its application into office and household goods, with premiumization advancing through brand collaborations; pop-up stores have become a core business model, spreading IP into everyday life through cross-industry collaboration.
In the console gaming market, the launch of Nintendo's next-generation Switch 2 console is at the early stage of a hardware replacement cycle, and the company, holding the exclusive domestic distribution network for this console, is directly positioned to benefit from market expansion.
The random figure and capsule toy market is a rapidly growing segment, where the company is responding with a dual B2B and B2C (directly operated stores) strategy.
The trading card game (TCG) market is also seeing expanding domestic fandom through events such as the global card culture expo 'KCCF.' In terms of competitive positioning, the company is regarded as a major player in domestic console game distribution, but as a license-based distribution business it faces relatively low entry barriers, with margin structure dependent on contract terms with overseas rights holders.
On the content production and distribution side, while the animation industry itself accounts for a relatively small share of the overall content industry, revenue derived from character licensing and distribution has become the dominant structural component.
The company has stated that new Nintendo Switch 2 titles are scheduled for launch in the second half of 2026, and it expects continued growth in distribution revenue as a result.
It also anticipates that long-term revenue contribution from the newly opened 'Studio Ghibli Exhibition in Jeju,' which opened in July, will be reflected in results.
According to the company, this Ghibli exhibition, prepared over three years, is expected to contribute to the exhibition content business given the IP's proven fandom.
The company has a stated policy of fully rolling out a game development business through its partnership with Nintendo, indicating an effort to expand from distribution into proprietary content development.
In the card business, whether the expansion momentum continues following the successful hosting of the global card culture expo 'KCCF' is a point to watch.
However, since demand pulled forward ahead of console price hikes boosted second-quarter results, it will be important to monitor how this temporary demand normalizes in subsequent quarters.
Whether the company can lift profitability through content and merchandise expansion and global distribution of IP such as One Piece and Ghibli, and whether the profit contribution from proprietary IP and licensing grows, are cited as challenges the company still needs to address.
According to recent media reports, Daewon Media's shares are said to be trading at a level below net asset (book) value.
Media analysis has attributed this valuation pattern to the fact that while the Nintendo distribution business has driven top-line growth by accounting for most of revenue, its relatively low profitability has weighed on the multiple.
The company's earnings turned from a net loss in 2024 to a profit in 2025, with the improvement trend continuing through the first half of 2026, making the market's read on the durability of this turnaround a point worth observing.
On shareholder returns, a notable feature is the choice of an in-kind dividend using treasury shares rather than cash, a policy direction that differs from typical cash-dividend-focused stocks.
Media reports have noted that the Switch 2 launch, IP business expansion, and the in-kind treasury dividend together have raised the possibility of a valuation re-rating, though this reflects the assessment in that reporting and whether it materializes remains to be confirmed.
Given the distribution-heavy revenue structure with a relatively high cost ratio, whether top-line growth translates directly into profitability improvement remains a variable to continue monitoring.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-23
Q2 2026 revenue rose 42.5% year over year to a record 124.5 billion won, with operating profit also increasing sharply. Sustained interest in the Nintendo Switch 2 and growth in random figure and capsule toy distribution drove the results.
The company stated it expects distribution revenue growth to continue given upcoming Switch 2 title launches in the second half.
Through overseas licenses including One Piece, Crayon Shin-chan, and Doraemon, along with the sole domestic official Studio Ghibli business rights, the company generates revenue across exhibitions, merchandise, and F&B channels.
The Studio Ghibli exhibition newly opened in Jeju in July is an asset expected to contribute long-term revenue given its proven fandom. Global expansion (North America, Japan, China) through in-house IP such as Armored Saurus and Mujik Tiger is also being pursued simultaneously.
After posting a net loss in 2024, the company returned to profit in 2025 with net income attributable to owners of 5.49 billion won, and the improvement has continued through the first half of 2026.
At the March AGM, the company decided to pay an in-kind dividend of approximately 0.0208 treasury shares per common share, continuing its shareholder return policy. Trailing four-quarter net income attributable to owners also exceeded the full-year 2025 net income level.
The 2025 annual operating margin was only 2.9%, and the first-half product sales cost ratio was reported at around 81.2%. Given the distribution-heavy business structure, top-line growth does not directly translate into profitability improvement.
The Q1 2026 operating margin also stayed around 1.9%, showing limited margin improvement relative to revenue growth.
A significant portion of results depends on the Nintendo Switch distribution business, raising concerns about a potential slowdown in hardware sales once the console product cycle matures.
Part of the second-quarter improvement was driven by demand pulled forward ahead of console price hikes, so it will be important to monitor the trend once this temporary demand fades.
As a license-based distribution business, there is also an ongoing risk of margin fluctuation tied to changes in contract terms or rights-holder policy.
The debt ratio rose from 58.2% in 2024 to 72.2% in 2025. At the March AGM, a proposal to approve the director compensation cap was voted down due to a lack of quorum after excluding voting rights of interested-party shareholders, reflecting some governance friction. The stability of the capital structure and governance operations warrants continued monitoring.
With roughly 75% of revenue generated from the distribution segment and a product sales cost ratio exceeding 80%, margin improvement may lag behind top-line growth. If the cost ratio rises further or distribution margins compress due to intensified competition, profitability could come under pressure.
If the profit contribution from content and IP business does not sufficiently expand, the inherently low margin structure of the distribution business may persist.
Key revenue sources such as Nintendo, Studio Ghibli, and One Piece are based on contracts with overseas rights holders and manufacturers, meaning business stability can hinge on contract renewal terms or changes in distribution policy.
If consumer interest in a specific console or IP cools faster than expected, revenue volatility could increase. If a license contract ends or its terms change unfavorably, a restructuring of the business portfolio could become necessary.
With the debt ratio rising from 58.2% in 2024 to 72.2% in 2025, the trend in financial burden warrants continued monitoring.
The case at the March AGM where a director compensation cap proposal was voted down due to a lack of quorum suggests a need to examine communication and voting structure with minority shareholders.
As is typical for a KOSDAQ-listed company, share price volatility tied to liquidity and supply-demand shifts also tends to be relatively pronounced.
The Q3 earnings release is reportedly scheduled, and it will be important to check whether the revenue and profit improvement seen through Q2 continues, and how much normalization occurs after console pre-demand fades.
New Nintendo Switch 2 titles are scheduled for launch, so it will be worth checking actual sales trends and their contribution to distribution revenue.
It will be worth observing whether the long-term performance of the Studio Ghibli Exhibition in Jeju and its contribution to content/exhibition revenue materializes as expected.
Following the global card culture expo 'KCCF,' it will be worth checking whether the card business expansion continues and whether follow-up events or new lineups are unveiled.
At the next annual general meeting, it will be worth checking whether the previously rejected director compensation cap proposal is resubmitted and whether governance improvement measures are taken.
Daewon Media turned from a net loss in 2024 to a profit in 2025, and revenue and operating profit have continued to expand together through the first half of 2026, driven by Nintendo Switch 2 distribution and growth in random figures, capsule toys, and card business.
However, with roughly 75% of revenue coming from the distribution segment and a high product sales cost ratio, operating margin improvement remains limited relative to the pace of top-line growth.
On the IP side, the company is broadening its revenue base through exhibitions, merchandise, and content by combining overseas licenses such as One Piece and Ghibli with in-house IP, and how new channels such as the Jeju Ghibli exhibition contribute to second-half results is a point to watch.
Financially, the debt ratio rose from 58.2% in 2024 to 72.2% in 2025, and governance-related issues also surfaced, including the rejection of a director compensation cap proposal at the March AGM due to a lack of quorum.
On shareholder returns, the choice of an in-kind treasury-share dividend instead of cash is a notable feature that can be viewed as a departure from typical dividend policy.
Going forward, the degree of normalization after pulled-forward console demand fades, the sales trajectory of new Switch 2 titles, and whether the Ghibli exhibition and card business expand their profit contribution are likely to be the key variables shaping the earnings trend.
This report is prepared for informational purposes only and does not include a buy or sell investment recommendation.
Report written 2026-09-05 · Data as of 2026-09-04
This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.