SANTA MONICA, CALIF. – November 7, 2023 — KRAFTON, Inc., the South Korean company and publisher of PUBG: BATTLEGROUNDS and The Callisto Protocol, shared its preliminary Q3 2023 earnings announcement on Nov. 7. The company reported strong quarterly sales of 450.3 billion KRW ($347.1 million USD), a QoQ increase of 16% and YoY increase of 4%. Operating Profit (OP) surged to 189.3 billion KRW ($145.9 million USD), marking a 44% QoQ and 31% YoY growth with an Operating Profit Margin (OPM) of 42%. Net Profit (NP) was reported at 211.6 billion KRW ($163.1 million USD). Notably, KRAFTON posted is 2023 cumulative sales through Q3 2023 at 1,376 billion KRW ($1.06 billion USD) and cumulative OP at 603.7B KRW ($465.4 million USD), claiming the highest OPM among listed game companies in Korea.
Q3 2023 EARNINGS AT A GLANCE
- Sales: 450.3 billion KRW ($347.1 million USD)
- Operating Profit: 189.3 billion KRW ($145.9 million USD)
- Net Profit: 211.6 billion KRW ($163.1 million USD)
PUBG: BATTLEGROUNDS, KRAFTON's flagship title, continued to drive performance with stable growth across PC and Console platforms, attributing to sales of 133.3 billion KRW ($102.7 million USD). The updated maps Miramar and Erangel, alongside the new weapon Dragunov, contributed to enhanced user experiences.
The Mobile segment also saw a significant uplift with a 26% QoQ and 9% YoY increase in sales, amounting to 309.1 billion KRW ($237.2 million USD), propelled by PUBG MOBILE’s Dragon Ball Super collaboration and the restoration of BATTLEGROUNDS MOBILE INDIA (BGMI) services. BGMI saw sales and traffic return to previous levels, further solidifying it as the most popular game in the Indian market.
FUTURE OUTLOOK AND INVESTMENT STRATEGY
Aligned with the "Scale-Up the Creative" strategy initiated in early 2023, KRAFTON made significant advancements in publishing and new IP acquisitions, investing in 13 global studios, thereby expanding its portfolio to 21 studios post-IPO. The company eagerly anticipates the debut of its self-developed titles starting in 2024, including Dark and Darker Mobile, an extraction RPG developed by Bluehole Studios, and inZOI, a life simulation game featuring realistic graphics. Additionally, Project Black Budget, an extraction shooter from PUBG STUDIOS, is slated for a second-half 2024 release, promising to further bolster earnings.
BREAKDOWN OF Q3 2023 EARNINGS RELATIVE TO PREVIOUS PERIODS
▲Table: KRAFTON’s 3Q23 (preliminary) earnings on a consolidated basis (unit: KRW100M)
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