Krafton Posts Record-High Revenue Last Year... Operating and Net Profit Both Decline

Q4 Operating Profit Down 98.9% Year-on-Year

Krafton achieved record-high annual revenue last year, backed by double-digit growth. However, operating profit and net profit both declined due to expanded investments in new growth industries.

Krafton logo. Provided by Krafton.

On February 9, Krafton announced on a consolidated basis that last year's revenue came to 3.3266 trillion won. This represents a 22.8% increase year-on-year and marks the highest revenue in the company's history. However, last year's operating profit and net profit were tallied at 1.0544 trillion won and 733.7 billion won, respectively, down 10.8% and 43.7% over the same period. Operating profit in the fourth quarter of last year was 2.4 billion won, a 98.9% decrease from the same quarter a year earlier. Revenue and net loss for the same quarter were 919.7 billion won and 22.7 billion won, respectively.

The PC segment contributed significantly to the record-breaking revenue. PC segment revenue reached 1.1846 trillion won, up 16% from a year earlier. In the fourth quarter of last year, PC segment revenue was 284.7 billion won, a 24% increase year-on-year. It is interpreted that "inZOI," released in March last year, and the new title "MIMESIS," unveiled in October, each sold more than 1 million copies and were reflected in revenue.

Krafton explained that the sharp drop in operating profit in the fourth quarter of last year was due to one-off expenses such as the relocation to its new headquarters. A Krafton official stated, "One-off expenses were recognized at once, including an 81.6 billion won contribution to the joint employee welfare fund, which will be used over the next four years in preparation for the relocation to the new headquarters in Seongsu."

Starting this year, Krafton plans to focus on expanding franchise intellectual property (IP) with long life cycles and on AI-based innovation. The PUBG IP will evolve into the "PUBG 2.0" gameplay platform, centered on the transition to Unreal Engine 5, the expansion of new modes, and updates to user-generated content (UGC). The company will also broaden the IP's scope with new titles such as the extraction shooter "Black Budget," the top-down tactical shooter "PUBG: Blindspot," and the console battle royale "Valor."

Krafton stated that "inZOI," "Last Epoch," and "MIMESIS" will be developed into leading IPs in their respective genres by focusing on improving game quality, advancing live services, and diversifying content. The company also announced plans to launch major upcoming titles such as "Subnautica 2," "Palworld Mobile," "Dinkum Together," and "NO LAW."

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