KRAFTON Investor Presentation: February 2025

Key insights

6 takeaways

01
Krafton achieved record-high 2024 financial results with KRW 2.7 trillion in revenue (41.8% YoY growth), KRW 1.18 trillion in operating profit (54.0% growth), and KRW 1.3 trillion in net profit (119.3% growth).See it on page 22
02
The company is shifting its strategy to a 'Scale-up the Creative' model, using the sustained success of the PUBG IP to fund and incubate a diverse portfolio of new titles.See it on page 10
03
PUBG remains the primary growth engine, achieving record-high traffic and revenue in 2024 while transitioning into a versatile gameplay platform.See it on page 5
04
Krafton is diversifying its portfolio by investing in high-potential genres, specifically targeting upcoming titles such as inZOI, Dark & Darker Mobile, and Subnautica 2.See it on page 10
05
The company maintains a 20% five-year compound annual growth rate in revenue, supported by disciplined resource allocation and the maintenance of evergreen titles.See it on page 19
06
Operational development is being enhanced through advanced technology integration, including proprietary simulation tools and joint research initiatives with NVIDIA.See it on page 15

Summary

Krafton’s February 2025 investor presentation outlines a strategic shift from original creative development to a "Scale-up the Creative" model, aimed at building a sustainable, multi-franchise ecosystem. The company’s primary thesis centers on leveraging the proven, long-term success of the PUBG intellectual property—which achieved record-high traffic and revenue in 2024—to fund and incubate a diverse portfolio of new titles. By transitioning PUBG PC into a versatile gameplay platform and investing in high-potential genres like life simulation, extraction shooters, and underwater survival, the company seeks to secure long-term growth across global markets.

Financial performance for fiscal year 2024 reflects this strategy, with the company reporting record-high annual revenue of KRW 2.7 trillion, representing a 41.8% year-over-year increase. Operating profit reached KRW 1.18 trillion, a 54.0% growth, while net profit rose to KRW 1.3 trillion, a 119.3% increase compared to the previous year. These gains were driven primarily by the sustained performance of the PUBG franchise across PC and mobile platforms, alongside disciplined resource allocation and a 20% five-year compound annual growth rate in revenue.

The company’s operational roadmap emphasizes aggressive investment in production and publishing, with a focus on titles such as inZOI, Dark & Darker Mobile, and Subnautica 2. Methodologically, the company is integrating advanced technologies, including joint research with NVIDIA and the implementation of proprietary simulation technology, to enhance gameplay depth and user engagement. By balancing the maintenance of established evergreen titles with the discovery of new creative talent and studios, the company aims to penetrate new market segments and maintain its competitive position in the global gaming industry through 2025 and beyond.