Knowmerce

Nomerce, founded in March 2019, operates a business built on artist IP, running the fan communication platform 'fromm' and the online arts education service 'Wonderwall' alongside concert and merchandise businesses.

Its business is organized into three segments: concert and tour production, the fromm platform, and merchandise (MD).

The fan community platform market is already dominated by large incumbents such as Hybe's Weverse, Dear U's Bubble, and YouTube memberships, meaning differentiated fan experience is key for a later entrant like fromm. Nomerce focuses on small- and mid-sized artist IP for its entertainment business.

It has also expanded into leveraging the IP of artists who have become independent from major agencies, not just small and mid-sized IP.

In China, the company has struck a strategic partnership with Mango TV, a leading Chinese video platform under state-backed Hunan Broadcasting System with 250 million paid subscribers and roughly KRW 2 trillion in revenue last year, and additional cooperation is planned in sequence, including advertising with Hunan TV, listing on the Xiaowang e-commerce platform, and concert and VR collaboration with the media firm Yunhong.

The company is led by CEO Kim Young-jun, who began his career as a fund manager at Daishin Asset Management and is regarded as a goal-oriented strategist with strong execution ability.

Nomerce's consolidated revenue rose for three consecutive years, from KRW 42.3 billion in 2023 to KRW 68.9 billion in 2024 and KRW 75.7 billion in 2025.

Operating profit swung from a loss of KRW 0.2 billion in 2023 to profits of KRW 8.2 billion in 2024 and KRW 12.3 billion in 2025, with the operating margin improving from -0.5% to 11.9% and then 16.3%.

Net profit attributable to owners likewise turned from a large loss of KRW 31.0 billion in 2023 to profits of KRW 9.9 billion in 2024 and KRW 14.8 billion in 2025.

Quarterly, the third quarter of 2025 was the strongest on record with revenue of KRW 27.6 billion and operating profit of KRW 5.4 billion, but the fourth quarter saw revenue fall to KRW 12.9 billion and operating profit swing to a loss of KRW 1.9 billion, reflecting the concert off-season.

First-quarter 2026 consolidated revenue came in at KRW 18.6 billion, down from KRW 19.1 billion a year earlier, while the second quarter posted revenue of KRW 16.1 billion, up 0.7% year on year, and operating profit of KRW 3.5 billion, down 15.9%.

The margin slowdown was mainly attributed to the absence of major concerts and one-off legal costs tied to a civil lawsuit reflected in the second quarter. The company stated that despite some one-off costs, first-half results confirmed a stable earnings structure centered on recurring platform-based revenue.

However, the prospectus at listing had projected 2024 revenue of KRW 68.2 billion and operating profit of KRW 11.3 billion, while actual operating profit came in at only KRW 8.2 billion, about 28% below plan; for 2025 the prospectus projected revenue of KRW 104.0 billion and operating profit of KRW 30.0 billion, but actual results of KRW 75.7 billion in revenue and KRW 12.3 billion in operating profit missed by 27.6% and 59.9%, respectively.

Demand for overseas tours by K-pop artists has continued to expand in the post-pandemic period, and the fan platform and IP commerce markets are also on a growth trend.

However, in the fan platform space, Hybe's Weverse and Dear U's Bubble enjoy first-mover advantages, leaving smaller players such as Nomerce to compete through differentiated partnerships and niche IP strategies.

The China market is emerging as a new growth axis, and Nomerce has rolled out a localized service through its partnership with the state-run Hunan Broadcasting System.

Indeed, fromm's paid subscribers in the Greater China region grew roughly 168% year on year, with expanded listings on major local app markets including Xiaomi, Huawei, OPPO and vivo, along with local IP and promotion expansion, driving platform growth.

In the concert segment, the seasonality typical of K-pop touring, with a slow fourth quarter and a peak in the second and third quarters, adds to earnings volatility, an effect that may be felt more acutely by Nomerce given its relatively thinner revenue base compared to major agencies.

In terms of competitive positioning, Nomerce lags behind large players such as Hybe and SM in scale and diversification, but shares elements of its business model with fan platform operators such as Dear U, making it a frequent point of comparison.

According to Shinhan Investment Corp, the third quarter is concentrated with Americas tour schedules for Woodz and JAY B, and second-half concert revenue, including a domestic concert for fromis_9, is projected at roughly KRW 22.1 billion.

Total concert attendance this year is estimated to surge to 300,000, up from 206,000 last year. There was also mention that discussions are underway for a major new IP to join the platform in the third quarter, with a chance of completion by next year.

The company stated that from the third quarter, growth in its China business, new IP additions, and global tours are being reflected sequentially in results.

Nomerce said it recently secured about KRW 40 billion in growth capital, which it plans to use to accelerate growth of its integrated IP business through new IP acquisition, global tour expansion, and growth of its content and merchandise business.

In China, a combined subscription product with Mango TV, advertising cooperation with Hunan TV, listing on the Xiaowang platform, and concert/VR cooperation with Yunhong are being pursued in sequence.

However, whether individual artist tours materialize, ticket sales performance, and the timing of revenue contribution from the China business remain variables subject to contracts and market conditions.