KRAFTON Posts Record H1 2024 Sales

KRAFTON Posts Record Sales Figures in the First Half of 2024!

KRAFTON Inc. (CEO CH Kim) held a conference call for an investor relations (IR) briefing on August 12 and announced its earnings for the first half and second quarter of 2024.

KRAFTON Posts Record Sales Figures in the First Half of 2024!

According to consolidated financial statements prepared under Korean International Financial Reporting Standards (K-IFRS), KRAFTON reported cumulative sales of KRW 1.3729 trillion (TRY 32.95 billion) and operating profit of KRW 642.6 billion (TRY 15.42 billion) in the first half of 2024. Both sales and operating profit grew year-over-year by 48.3% and 55.0% respectively, reaching their highest half-year levels ever. Second-quarter sales came in at KRW 707 billion (TRY 16.97 billion), setting a new quarterly sales record following the first quarter. Operating profit for the quarter stood at KRW 332.1 billion (TRY 7.97 billion).

KRAFTON maintained solid growth across the board, including sales and traffic, through various live services built around PUBG: Battlegrounds (hereafter referred to as PUBG). The company also invested in a total of 11 game studios during the first half of the year to explore new intellectual property, while raising the development quality of key new titles such as Dark and Darker Mobile and inZOI.

Key Achievements in the First Half of 2024

PUBG received positive responses from users worldwide through various content such as map updates and collaborations, with traffic and sales efficiency both improving compared to the same period last year.

On PC/console, traffic kept growing, driven mainly by the Erangel Classic map and the NewJeans collaboration. Monthly active users (MAU) grew 40% year-over-year, while the number of paying users more than doubled. KRAFTON plans to accelerate its growth in the second half of the year with in-game updates, including a Lamborghini collaboration.

On mobile, 'PUBG Mobile' and 'Battlegrounds Mobile India' (hereafter referred to as BGMI) continued to receive positive feedback through localized content and showed noticeable growth thanks to improved monetization models. 'PUBG Mobile' made a significant contribution to traffic and sales through a collaboration with a popular Middle Eastern actor and the introduction of upgradable outfit cosmetics. BGMI is also attracting new users through UC bonus challenges and a collaboration with a popular local cricket team.

New and Notable Titles Added to the Catalog

KRAFTON is working on two titles set to launch this year, Dark and Darker Mobile and inZOI. Both games will be showcased at Gamescom in Germany later this month to gauge reactions from the European player base. Dark and Darker Mobile recently ran a global test, and based on the results, the game will be further refined ahead of a soft launch in Canada in October. The game's worldwide launch is planned for the fourth quarter of this year. inZOI is targeted to enter early access this year, with the goal of becoming a long-running IP in the life simulation genre, a genre that has proven popular in Western markets.

KRAFTON is also accelerating capital investments and new IP exploration to diversify its platforms and genres. Since 2021, the company has invested in 27 companies, 14 in North America and 8 in Europe, expanding the genres of the acquired studios to include shooters, RPGs and simulation games. In August, KRAFTON also brought on the development team of Japanese game developer Tango Gameworks.

Key New Businesses in India and AI

Drawing on the experience and know-how gained in India through BGMI, KRAFTON runs a large-scale local publishing operation. The company is expanding its engagement with local users through marketing activities and esports operations tailored to various local languages and cultures.

KRAFTON also continues to explore new gaming experiences based on its AI research and development capabilities. ReLU Games, a KRAFTON subsidiary, introduced two AI-based games in the first half of this year and received positive responses from well-known streamers and users. The company plans to release new games in the second half of the year that use reinforcement learning and large language models (LLMs) to deliver unique, enjoyable experiences to players.

KRAFTON's Mid- to Long-Term Goals

KRAFTON plans to explore original games and IPs and to steadily deliver growing services to players through continuous improvement and content updates. The company aims to expand its PUBG IP franchise business and identify high-potential IPs through various methods, including in-house development, minority investments, and mergers and acquisitions.

	Current half-year performance (2024 1H)	Year-over-year performance (2023 1H)	% Change (Year-over-Year)
Sales	13,729	9,257	48.3
Operating Profit	6,426	4,145	55.0
Net Profit	6,900	3,957	74.4

▲Table: KRAFTON's (preliminary) earnings for the first half of 2024 based on consolidated financial statements (Unit: 100 million KRW)

	Current quarter performance (2024 2Q)	Quarter-over-quarter performance (2024 1Q)	% Change (Quarter-over-Quarter)	Year-over-year performance (2023 2Q)	% Change (Year-over-Year)
Sales	7,070	6,659	6.2	3,871	82.7
Operating Profit	3,321	3,105	7.0	1,315	152.6
Net Profit	3,414	3,486	-2.1	1,285	165.7

▲ Table: KRAFTON's (preliminary) earnings for the second quarter of 2024 on a consolidated basis (Unit: KRW 100M)

About KRAFTON, INC.

Headquartered in South Korea, KRAFTON, Inc. is dedicated to discovering and publishing games that spark curiosity by delivering fun, original experiences. Founded in 2007, KRAFTON is home to globally renowned developers such as PUBG STUDIOS, Striking Distance Studios, Unknown Worlds, VECTOR NORTH, Neon Giant, KRAFTON Montréal Studio, Bluehole Studio, RisingWings, 5minlab, Dreamotion, ReLU Games and Flyway Games. Each studio constantly strives to overcome new challenges and leverage innovative technologies. Their goal is to reach more players by expanding KRAFTON's platforms and services.

KRAFTON is responsible for leading entertainment properties, most notably PUBG: BATTLEGROUNDS, PUBG MOBILE, The Callisto Protocol, NEW STATE MOBILE, Moonbreaker, Defense Derby, TERA and ELYON. With a team of 3,000 people spread across nine countries, KRAFTON is a technology-driven company made up of top talent, aiming to expand its business beyond games into multimedia entertainment and deep learning. For more information, visit www.krafton.com .

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