AMSTERDAM, NETHERLANDS – May 9, 2023 — KRAFTON, Inc., the South Korean company and publisher of PUBG: BATTLEGROUNDS and The Callisto Protocol, shared its preliminary Q1 2023 earnings announcement on May 9. The company posted record quarterly sales of 538.7 billion KRW ($407.8 million USD), up 13.7% QoQ and 3% YoY. Operating Profit rose 124.3% QoQ to 283 billion KRW ($214.2 million USD) and resulted in an Operating Profit Margin (OPM) of 53%. Net Profit, at 267.2 billion KRW ($202.2 million USD), turned to profit QoQ and drove a Net Profit Margin of 50%.
SUMMARY OF Q1 2023 EARNINGS
- Sales: 538.7 billion KRW ($407.8 million USD)
- Operating Profit: 283 billion KRW ($214.2 million USD)
- Net Profit: 267.2 billion KRW ($202.2 million USD)
CONTRIBUTING FACTORS
PUBG: BATTLEGROUNDS, KRAFTON's flagship title, achieved an all-time high in in-game sales for PC and console, with PC sales growing 28% QoQ and 68% YoY, accounting for 33% of total sales. The development team, which celebrated PUBG’s 6th anniversary in March, plans to maintain momentum with a variety of updates, including improvements to Arcade mode, a new Clan system, an assortment of brand collaborations, and new map release.
KRAFTON's mobile division also experienced growth, with the Q1 introduction of World of Wonder, a sandbox mode in PUBG MOBILE that allows users to create their own maps. The company plans to increase monetization efficiency in Q2 through the launch of new progressive skins and more collaborations with global brands that build on the success of previous in-game activations with Marvel, Netflix, Tesla, and more.
LOOKING FORWARD
KRAFTON is strategically working to expand its role as a global publisher by discovering creativity and scaling growth through self-developed games and minority stake investments. The company is focused on establishing a healthy communication system between KRAFTON and independent studios, as well as developing a production process that includes thorough review and testing.
Since early 2023, KRAFTON has concentrated on securing global second-party publishing capabilities through in-house game development and minority investing. The company has plans to form a virtual organization to better support the 24 project pipelines under development within its ecosystem.
KRAFTON is also committed to researching deep learning technologies for shortening game development time and implementing various features within games through proactive investments. Recently, the papers published by KRAFTON’s Deep Learning Division were accepted to top-tier conferences, and the company has begun to implement technologies that enable cooperative play within games.
BREAKDOWN OF Q1 2023 PERFORMANCE RELATIVE TO PREVIOUS PERIODS
| Earnings (Q1 2023) |
Earnings (Q4 2022) |
% Change (QoQ) |
Earnings (Q1 2022) |
% Change (YoY) |
|
| Sales | 5,387 | 4,738 | 13.7% | 5,230 | 3.0% |
| OP | 2,830 | 1,262 | 124.3% | 3,150 | -10.1% |
| NP | 2,672 | -1,654 | Swing to profit | 2,395 | 11.6% |
â–²Table: KRAFTON’s 1Q23 (preliminary) earnings on a consolidated basis (unit: KRW100M)
For the latest information on KRAFTON, please visit www.krafton.com/en/.
Based out of South Korea, KRAFTON, Inc. is a collective of independent game development studios bound by a passion for creating innovative and engaging entertainment experiences for gamers worldwide. Founded in 2007, KRAFTON consists of PUBG STUDIOS, Bluehole Studio, RisingWings, Striking Distance Studios, Dreamotion, Unknown Worlds, 5minlab, Neon Giant and KRAFTON Montréal Studio, each with its own unique expertise.
KRAFTON is responsible for premier entertainment properties, including PUBG: BATTLEGROUNDS, The Callisto Protocol, NEW STATE MOBILE, Moonbreaker, TERA and ELYON. With a team of 3,000 members across nine countries, KRAFTON is a technology-driven company that boasts world-class capabilities as it seeks to expand its areas of business beyond games to multimedia entertainment and deep learning. For more information, visit www.krafton.com