KRAFTON 3Q21 Earnings Release

Key insights

6 takeaways

01
KRAFTON achieved record-high 3Q21 revenue of KRW 521.9 billion, a 42.3% year-over-year increase, with net profit rising 62.1% to KRW 178.3 billion.See it on page 10
02
The mobile segment served as the primary revenue driver at KRW 380.5 billion, fueled by the successful launch of Battlegrounds Mobile India (BGMI) and ongoing PUBG Mobile updates.See it on page 11
03
PC segment revenue grew 111.7% year-over-year to KRW 129.5 billion, supported by the introduction of new content such as the TAEGO map.See it on page 11
04
Operating profit reached KRW 195.3 billion, a 16.5% year-over-year increase, despite a 64% rise in operating costs driven by personnel, marketing, and business expansion.See it on page 12
05
KRAFTON acquired Unknown Worlds Entertainment to bolster its open-world survival game development capabilities and deep learning expertise.See it on page 9
06
The company is prioritizing global expansion in markets like India and the Middle East through the launch of PUBG: NEW STATE and investments in esports and cross-media content.See it on page 8

Summary

KRAFTON’s third-quarter 2021 earnings release details a period of significant financial growth and strategic expansion, driven by the successful launch of Battlegrounds Mobile India (BGMI) and the continued performance of its core PUBG intellectual property. The company reported record-high quarterly revenue of KRW 521.9 billion, representing a 42.3% increase year-over-year and a 13.6% increase quarter-over-quarter. Operating profit reached KRW 195.3 billion, a 16.5% year-over-year improvement, while net profit rose to KRW 178.3 billion, marking a 62.1% increase compared to the same period in the previous year.

The company’s financial success is attributed to a diversified business model and global live service expertise across PC, mobile, and console segments. The mobile segment was a primary growth engine, generating KRW 380.5 billion in revenue, bolstered by the rapid adoption of BGMI and consistent updates to PUBG Mobile. Simultaneously, the PC segment saw a substantial 111.7% year-over-year revenue increase, reaching KRW 129.5 billion, supported by the introduction of new content such as the TAEGO map. These results were achieved despite a 64% year-over-year increase in operating costs, which the company attributed to higher personnel expenses, business expansion, and increased marketing investment for new product launches.

Strategically, the company is focused on transforming games into a powerful medium through the expansion of the PUBG Universe and the acquisition of new development capabilities. This includes the integration of Unknown Worlds Entertainment to leverage expertise in open-world survival games and the development of deep learning technologies. Looking forward, the company aims to scale its global user base through the launch of PUBG: NEW STATE and continued investment in localized content, esports, and cross-media entertainment, positioning itself to capture broader audiences in emerging markets like India and the Middle East.