KRAFTON Investor Presentation: Goldman Sachs Global NDR

Key insights

6 slides

New direction

KRAFTON is implementing a 'Scale-up the Creative' strategy.

This strategy aims to transform the company from a single-IP entity into a multi-franchise powerhouse. The goal is to launch new intellectual properties every three to five years.

Annual results

KRAFTON reported KRW 1,910.6 billion in total revenue for 2023.

Operating profit also grew by 2.2% to KRW 768.0 billion.

Revenue Growth. The company reported 2023 total revenue of KRW 1,910.6 billion (up 3.1% YoY) and an operating profit of KRW 768.0 billion (up 2.2% YoY).

See it on page 17

KRW 1,910.6 billion

KRAFTON's total revenue in 2023.

Year-over-year increase in total revenue: 3.1%
Operating profit in 2023: KRW 768.0 billion

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Summary

KRAFTON’s strategic roadmap centers on the "Scale-up the Creative" initiative, which aims to evolve the company from a single-IP entity into a multi-franchise powerhouse. The core thesis involves leveraging the established success of the PUBG intellectual property to fund and nurture a diverse pipeline of new titles, with a target of launching new IPs every three to five years. By utilizing a multi-publishing system and centralizing management capabilities at the headquarters, the company seeks to transform original creative concepts into global franchises, while simultaneously integrating advanced deep learning and AI technologies to enhance production efficiency and user experience.

Financial performance for the 2023 fiscal year reflects steady growth, with total revenue reaching KRW 1,910.6 billion, a 3.1% increase year-over-year. Operating profit rose to KRW 768.0 billion, representing a 2.2% increase, while adjusted EBITDA grew by 14.0% to KRW 903.7 billion. The PUBG IP remains the primary revenue driver, experiencing a 37% year-over-year revenue increase in the PC and console segments. Additionally, the relaunch of BATTLEGROUNDS MOBILE INDIA (BGMI) has demonstrated strong recovery and growth potential, confirming the company’s ability to successfully navigate and monetize key regional markets.

The company’s operational scope is global, with a focus on expanding its portfolio through M&A, equity investments, and second-party publishing. As of late 2023, the development pipeline includes approximately 30 projects, such as InZOI and Black Budget, which are designed to diversify gameplay experiences across mobile, PC, and console platforms. By transitioning toward a Games-as-a-Service (GaaS) model and prioritizing user-oriented updates, the company aims to sustain long-term engagement and solidify its position as a leader in the global gaming industry.