KRAFTON Inc. (CEO CH Kim) recently hosted an Investor Relations (IR) briefing, revealing impressive financial results for the first half and second quarter of 2024. The company’s consolidated financial statements, prepared according to Korean International Financial Reporting Standards (K-IFRS), show unprecedented growth, underscoring KRAFTON’s robust market presence and strategic vision.
KRAFTON Achieves Record-high Sales of 1.3729T KRW (788.9M GBP) in the First Half of 2024
Record-Breaking Financial Performance
KRAFTON’s earnings for the first half of 2024 reached new heights, with cumulative sales hitting 1.3729 trillion KRW (788.9 million GBP) and an operating profit of 642.6 billion KRW (369.2 million GBP). These figures represent remarkable year-on-year increases of 48.3% in sales and 55.0% in operating profit, marking the highest half-yearly performance in the company’s history.
The second quarter alone saw sales of 707 billion KRW (406.2 million GBP) and an operating profit of 332.1 billion KRW (190.8 million GBP), reflecting year-on-year growth rates of 82.7% and 152.6%, respectively. This exceptional financial performance underscores KRAFTON’s enduring appeal and market strength.
Strategic Growth and Expansion
KRAFTON has maintained solid growth across all sectors, particularly through the continued success of PUBG: BATTLEGROUNDS. The company has also been proactive in enhancing the quality of upcoming titles like Dark and Darker Mobile and inZOI. In just the first half of the year, KRAFTON made 11 strategic investments in game studios to discover and develop new IPs.
Strengthening Focus on India
KRAFTON is deepening its engagement in the Indian market with targeted strategies. Through localized content for BGMI, celebrity partnerships, and regional marketing campaigns, the company has significantly bolstered its brand presence. The upcoming launch of Cookie Run in India, with dedicated localization efforts, and the organization of esports tournaments are further increasing gamer engagement.
Major Achievements in the First Half of 2024
PUBG has seen positive feedback from users worldwide owing to various updates and collaborations. The Erangel Classic map service and the NewJeans collaboration for PC and console versions have led to a 40% year-on-year increase in monthly active users (MAU), with the number of paying users more than doubling. KRAFTON plans to maintain this momentum with in-game updates, including a collaboration with Lamborghini.
On the mobile front, PUBG Mobile and Battlegrounds Mobile India (BGMI) have shown significant growth. Localized content and improved monetization models have driven this success, with notable collaborations such as a popular Middle Eastern actor and a local cricket team enhancing user engagement.
Introduction of Major New Titles
KRAFTON is gearing up to release two new titles: Dark and Darker Mobile and inZOI. Both games will be showcased at gamescom in Germany, aiming to capture the Western audience’s interest. Following a global test, Dark and Darker Mobile is set for a soft launch in Canada in October, with a global rollout planned for the fourth quarter. InZOI, targeting early access this year, aims to establish itself as a long-standing IP in the life simulation genre.
AI Advancements in Gaming
KRAFTON is also exploring innovative gameplay experiences through its AI R&D capabilities. In the first half of 2024, ReLU Games, a KRAFTON subsidiary, introduced two AI-based games that received positive feedback from streamers and users alike. The company plans to launch new titles in the second half of the year, leveraging reinforcement learning and large language models (LLM) to deliver unique gaming experiences.
Future Directions
Looking ahead, KRAFTON aims to discover original games and IPs, ensuring steady growth through continuous updates and improvements. The company plans to expand the PUBG IP franchise and identify high-potential IPs through in-house development, minority investments, and mergers and acquisitions (M&As).
In summary, KRAFTON’s record-breaking earnings, strategic investments, and commitment to innovation highlight a promising future for the company and its stakeholders. With a solid foundation and a forward-looking strategy, KRAFTON is set to continue its trajectory of growth and success in the global gaming industry.
