Krafton Achieves Record High Revenue of 1.8863 Trillion KRW Last Year... Overseas Sales Account for 94%

[Asia Economy Reporter Seungjin Lee] Krafton achieved its highest-ever sales last year.

Krafton announced on the 10th that it recorded sales of 1.8863 trillion KRW, operating profit of 639.6 billion KRW, and net profit of 519.9 billion KRW based on consolidated financial statements for last year. The sales figure represents a 13% growth compared to the previous year, marking the highest performance ever. The annual overseas sales ratio reached 94%.

Among the costs of free stock donations of major shareholders, 60.9 billion KRW was not an expense borne by the company but was reflected as an accounting expense in 2021. Considering this, Krafton achieved operating profits in the 700 billion KRW range for two consecutive years.

In the fourth quarter of 2021, sales amounted to 444 billion KRW, operating profit was 43 billion KRW, and net profit was 6.2 billion KRW. While sales grew 26% year-on-year, operating profit and net profit decreased by 54% and 85%, respectively.

Centered on 'PUBG: Battlegrounds,' the PC and mobile sectors showed steady growth. PC game sales in the fourth quarter were 114.9 billion KRW, with annual sales of 399 billion KRW. In the fourth quarter, preparations were made to transition Battlegrounds to a free service, establishing a sustainable live service structure.

Additionally, through the development of various paid product lines, PC in-game ARPU (average revenue per user) increased more than fourfold compared to the previous year, driving significant sales growth. The mobile sector recorded 303.7 billion KRW in the fourth quarter and 1.4172 trillion KRW annually, setting a record high for mobile game sales. The fourth quarter sales growth was contributed by increased revenue from Battlegrounds Mobile, growth in Battlegrounds Mobile India, and the launch of New State Mobile.

Operating expenses in the fourth quarter increased by 74.4 billion KRW compared to the previous quarter, reaching 401 billion KRW, and annual operating expenses for 2021 rose by 350.1 billion KRW year-on-year to 1.2467 trillion KRW. The increase in operating expenses was partly due to higher marketing costs, seasonal off-season effects, and one-time stock compensation expenses.

Along with the earnings announcement, Krafton stated that it will focus on three areas in 2022: ▲strengthening game capabilities ▲actively pursuing new businesses ▲and various experiments.

First, the company plans to strengthen game publishing capabilities and secure competitive advantages through operational efficiency, targeting gamers with new releases. The newly acquired Unknown Worlds’ new title ‘Project M’ is being prepared for early access (PC) within the year, and in the second half, Striking Distance Studios’ The Callisto Protocol is scheduled for release. Additionally, mobile games such as Dream Motion’s 'Road to Valor: Empires' and Rising Wings’ ‘Defense Derby’ are also awaiting release.

Krafton CEO Changhan Kim said, “We will introduce a new production program called ‘The Potential Program’ and actively challenge new businesses such as deep learning, Web 3.0, NFT, and VR.”

He added, “Regarding deep learning, we are developing an audio content UGC (user-generated content) platform that provides a text-based audio editing tool using voice AI, aiming for official service by the end of 2022. We will also implement a high-level metaverse using Unreal Engine-based content creation tools.”

This content was produced with the assistance of AI translation services.