KRAFTON, Inc. Separate Financial Statements: 2024

KRAFTON, Inc. demonstrated robust financial expansion throughout the 2024 fiscal year, characterized by significant growth in both revenue and profitability. The company reported annual revenue of approximately KRW 2.64 trillion, a substantial increase from the KRW 1.84 trillion recorded in 2023, primarily fueled by strong performance in its mobile and PC service segments. Profit for the year reached KRW 1.38 trillion, nearly doubling the KRW 728 billion achieved in the prior period. This financial trajectory is supported by a solid capital structure, evidenced by a debt-to-equity ratio of 13.45% and total equity rising to KRW 6.83 trillion.

The company’s operations remain heavily concentrated in the Asian market, which accounted for approximately 86.78% of total revenue in 2024. Beyond core gaming operations, KRAFTON maintains a diverse portfolio of financial assets and strategic investments in subsidiaries, associates, and joint ventures, totaling KRW 1.66 trillion in carrying value. Management continues to employ rigorous valuation techniques and sensitivity analyses to monitor these assets, particularly regarding the impairment testing of entities such as Unknown Worlds Entertainment, Inc. The company’s financial health is further bolstered by effective internal controls, as confirmed by an unmodified audit opinion from KPMG Samjong Accounting Corp.

Financial risk management remains a priority, with the company actively navigating foreign exchange, credit, and liquidity risks through structured accounting policies and hedging strategies. While the company faces various contractual contingencies related to acquisitions and performance-based incentives, these are not expected to materially impact its overall financial position. With basic earnings per share rising to KRW 30,129 and unappropriated retained earnings reaching KRW 4.3 trillion, KRAFTON enters the subsequent period with a strong balance sheet and a clear focus on sustaining its growth across its global gaming ecosystem.