Krafton aims to grow PUBG franchise to $10 billion in annual value, reports another record quarter

Krafton has released a financial report for the second quarter ended June 30, 2024. The South Korean company posted strong revenue and profit growth thanks to the success of the PUBG franchise.

PUBG: Battlegrounds’ collaboration with NewJeans

Financial highlights

• According to its earnings presentation, Krafton reached ₩707 billion ($515.7 million) in revenue in Q2, up 82.7% compared to the same period last year. This is another record three-month period, following the previous quarter.
• Operating profit grew 152.6% to ₩332.1 billion ($242.2 million), while net profit reached ₩341.4 billion ($249 million) — up 165.7% YoY.

Krafton’s quarterly net profit

• Mobile remained the number one platform by revenue, growing 104.2% year-over-year to ₩499.9 billion ($364.6 million). It is followed by PC (₩191.3 billion / $139.5 million, +63.5%) and console (₩8.8 billion / $6.42 million, -53.9%).

Krafton’s quarterly revenue by platform

• In Q2, Krafton spent ₩77.5 billion ($56.5 million) on platform fees (revenue cuts on Steam, mobile stores, etc.), up 107.1% from the same period last year. Its marketing expenses grew 144.7% year-over-year to ₩12.4 billion ($9 million).

Game results and business plans

• In the first half of 2024, PUBG: Battlegrounds saw its MAU (monthly active users) grow 40% year-over-year, while the number of paying users increased by 130%. The main drivers were the return of the classic Erangel map and Krafton’s collaboration with K-pop group NewJeans.
• When it comes to PUBG Mobile, MAU and the number of paying users grew 30% and 40% year-over-year, respectively. This is due to the release of the X-Suit skin and collaboration with Myriam Fares.

PUBG: Battlegrounds (left), PUBG Mobile (right)

• In Q3, Krafton plans to conduct a beta test of Dark and Darker Mobile, with the game’s launch scheduled for the fourth quarter (October 1-December 31, 2024).
• Life sim inZOI is expected to launch in Early Access on Steam by the end of 2024. The company is using genAI and LLMs for in-game customization and creating NPC dialogue.
• Krafton aims to grow the PUBG franchise to the annual value of $10 billion by reaching younger audiences and creating new games across various genres and platforms based on this IP.
• Another part of the company’s strategy is to further invest in first-party production and make efficient M&A deals with the goal of creating new IPs with franchise potential (i.e. $1 billion in annual value).

Krafton’s mid-to-long term strategy

• Krafton has invested in 11 studios since January 2024, including its acquisition of Tango Gameworks. The company plans to diversify its portfolio by expanding into new genres and platforms.