Krafton Reports Q2 Operating Profit of 131.5 Billion KRW, Down 20% YoY

Krafton’s performance declined in the second quarter of this year due to seasonal off-season effects and the absence of new releases.

Krafton announced that it recorded sales of 387.1 billion KRW and an operating profit of 131.5 billion KRW in the second quarter of this year. These figures represent decreases of 8.6% and 20.7%, respectively, compared to the same period last year. Net profit was 128.5 billion KRW, down 33.7% year-on-year. For the first half of the year, cumulative sales reached 925.7 billion KRW, operating profit 414.5 billion KRW, and net profit 395.7 billion KRW.

In the first half, ‘PUBG: Battlegrounds (hereafter Battlegrounds)’ PC and console versions underwent various updates including general match improvements, the addition of a revival system, the launch of a clan system, and arcade revamps, laying the foundation for sustainable service. Even after becoming free-to-play, more than 2 million new users continued to join monthly, and in the second half, the company plans to offer rich content through collaborations with new IPs and the release of new maps.

Krafton explained that Battlegrounds Mobile secured stable revenue by introducing a revamped Royal Pass product on a bimonthly basis. In particular, the ‘Battlegrounds Mobile India’ service resumed in May, recovering traffic in the Indian market. In the second half, the company plans to focus more on the Indian market by adding localized content and hosting large-scale esports events. ‘Defense Derby,’ which was launched globally in early August, is achieving early success with positive user responses.

Under the strategy called ‘Scale-Up the Creative,’ Krafton is strengthening its game development and publishing capabilities. Currently, Krafton and 11 independent studios are developing more than 20 new games, including ‘The Bird That Drinks Tears,’ ‘Project Black Budget,’ and ‘Project Gold Rush.’ To expand the ecosystem, Krafton has established a new new-release proposal system called ‘The Creative.’

To discover original creativity, Krafton is investing in domestic and overseas studios to actively secure future growth potential. Additionally, aiming to discover new gameplay and increase production efficiency, deep learning technology is being introduced into operations. Deep learning technology will also be applied to ‘Migaloo,’ an open-world UGC platform scheduled for a soft launch by the end of the year.

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