KRAFTON 2Q & 1H 2024 Earnings Results

Key insights

6 takeaways

01
Krafton achieved record-high 1H 2024 revenue of KRW 1,372.9 billion and an operating profit of KRW 642.6 billion, reaching 84% of its total 2023 annual operating profit in just six months.See it on page 3
02
Mobile revenue in 2Q 2024 surged 104.2% year-over-year to KRW 499.9 billion, driven largely by the global popularity of the PUBG franchise and Battlegrounds Mobile India.See it on page 10
03
The company is aggressively diversifying its portfolio through 27 investments and second-party publishing agreements as of August 2024, including the recent acquisition of the Tango Gameworks team.See it on page 6
04
Krafton is actively integrating generative AI and large language models into its development pipeline to improve operational efficiency and gameplay experiences.See it on page 7
05
The company is expanding its intellectual property catalog beyond PUBG with the development of new titles including Dark and Darker Mobile and inZOI.See it on page 5
06
As of the second quarter of 2024, Krafton maintains a strong financial position with total assets valued at KRW 7,146.5 billion.See it on page 15

Summary

Krafton’s financial performance for the first half of 2024 reflects a period of record-breaking growth, driven primarily by the sustained global popularity of the PUBG intellectual property. For the six-month period ending June 30, 2024, the company achieved record-high revenue of KRW 1,372.9 billion and an operating profit of KRW 642.6 billion. This represents a significant year-over-year increase, with the operating profit for the first half of 2024 already reaching 84% of the total operating profit recorded for the entire 2023 fiscal year.

The company’s revenue growth is underpinned by strong performance across PC and mobile platforms, with mobile revenue in the second quarter of 2024 rising 104.2% year-over-year to KRW 499.9 billion. The PUBG franchise continues to expand its reach through localized content, esports initiatives, and strategic collaborations, particularly in the Indian market with Battlegrounds Mobile India. Financial results are prepared in accordance with K-IFRS, and the company maintains a robust balance sheet with total assets reaching KRW 7,146.5 billion as of the second quarter of 2024.

Strategic expansion remains a core focus, with the company diversifying its portfolio through 27 investments and second-party publishing agreements as of August 2024. Recent efforts include the acquisition of the Tango Gameworks development team and the development of new titles such as Dark and Darker Mobile and inZOI. Furthermore, Krafton is actively integrating generative AI and large language models into its development pipeline to enhance gameplay experiences and operational efficiency. Moving forward, the company aims to sustain this momentum by leveraging the PUBG franchise as a foundation while aggressively pursuing new intellectual properties and global fandom expansion across various genres and platforms.