KRAFTON Investor Presentation: September 2024

Key insights

6 takeaways

01
KRAFTON achieved record revenue of KRW 1,372.9 billion in the first half of 2024, representing a 48.3% increase compared to the same period in 2023.See it on page 3
02
Operating profit for the first half of 2024 reached KRW 642.6 billion, already accounting for 84% of the total operating profit earned in the full 2023 fiscal year.See it on page 3
03
The PUBG franchise remains the primary financial driver, fueling two consecutive quarters of record-high sales, with Q2 2024 revenue hitting KRW 707.0 billion.See it on page 10
04
KRAFTON is aggressively expanding its portfolio through 27 total investments as of August 2024, including the recent acquisition of the Tango Gameworks development team.See it on page 6
05
The company is integrating generative AI and Large Language Models (LLMs) into upcoming titles such as 'Dark and Darker Mobile' and 'inZOI' to enhance gameplay.See it on page 7
06
KRAFTON is prioritizing growth in the Indian market through localized content and esports initiatives, supported by total assets of KRW 7,146.5 billion as of Q2 2024.See it on page 7

Summary

KRAFTON’s September 2024 investor presentation outlines the company’s strong financial trajectory and strategic focus on expanding its intellectual property portfolio. The primary thesis centers on leveraging the sustained global success of the PUBG franchise to fund long-term growth through diversified studio investments, new game development, and the integration of generative AI technologies.

Financial performance for the first half of 2024 reflects significant growth, with revenue reaching a record KRW 1,372.9 billion, a 48.3% increase compared to the same period in 2023. Operating profit for the half-year stood at KRW 642.6 billion, representing 84% of the total operating profit achieved in the full 2023 fiscal year. This growth is driven primarily by the PUBG BATTLEGROUNDS PC and mobile platforms, which continue to show strong user engagement and monetization. Quarterly revenue for the second quarter of 2024 reached KRW 707.0 billion, marking two consecutive quarters of record-high sales.

The company’s growth strategy relies on a dual approach of internal development and external investment. KRAFTON has completed 27 investments as of August 2024, including the recent acquisition of the Tango Gameworks development team to secure new creative talent and IPs. Future product pipelines include the upcoming launches of Dark and Darker Mobile and inZOI, both of which utilize direct community feedback and advanced technologies like Large Language Models (LLMs) to enhance gameplay. Furthermore, the company is prioritizing expansion in the Indian market through localized content and esports initiatives. These efforts are supported by a robust balance sheet, with total assets rising to KRW 7,146.5 billion as of the second quarter of 2024.