[Market Focus] Krafton Slumps on Projections of Slowing Earnings and New Title Momentum...Hits New Low

Krafton hit a new 52-week intraday low, falling over 3%, amid projections of slowing earnings and a lack of momentum from new titles.

As of 9:21 a.m. on November 5, Krafton was trading at 270,000 won on the Korea Exchange, down 9,000 won (3.23%) from the previous day. During the session, the price dropped to as low as 264,000 won, marking a new 52-week low.

The previous day, Krafton announced consolidated sales of 870.6 billion won and operating profit of 348.6 billion won for the third quarter of this year. These figures represent increases of 21% and 7.5%, respectively, compared to the same period last year. Lee Jieun, a researcher at Daishin Securities, stated, "Sales met consensus (the average forecast by securities firms), but operating profit fell short of expectations. Both the PC and mobile versions of PUBG appear to be significantly affected by competing titles. In the fourth quarter, overall sales from PUBG are expected to decline, and additional costs such as litigation expenses related to Unknown Worlds are anticipated." She added, "It is unlikely that new titles will be released in the first half of 2026, and there is currently a lack of momentum from both earnings and new releases." Daishin Securities lowered its target price for Krafton by 7% to 410,000 won.

SK Securities also reduced its target price for Krafton from 450,000 won to 380,000 won. Nam Hyoji, a researcher at SK Securities, said, "In the absence of new releases, the instability of the previously solid PUBG intellectual property (IP) services is having a significant impact on overall earnings. It is still too early for expectations and results from next year's new titles to be reflected."

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