Seoul, South Korea - KRAFTON, Inc. reported its sales and earnings for the first half of 2023, showing mixed results.
Why it matters:
KRAFTON was one of the leading unicorn startups in South Korea.
The startup ecosystem in South Korea needs to show sustained performance after going public.
The Key Points.
1. H1 2023 Financial Results
- Revenue: KRW 925.7 billion ($701.8 million), down 2% YoY
- Operating profit: KRW 414.5 billion (US$314.3 million), down 14% YoY
- Net profit: KRW 395.7 billion (US$300.0 million), down 10% YoY
Despite significant efforts to reduce costs, seasonal off-peak effects occurred only in the second quarter of 2023.
- Revenue: KRW 387.1 billion (US$ 293.5 million)
- Operating profit: KRW 131.5 billion (US$ 99.8 million)
- Net profit: KRW 128.5 billion (US$97.5 million)
2. Game Developments and Strategies:
- PUBG: BATTLEGROUNDS remains a crucial player with steady user growth, including 2 million monthly new users, even after the transition to free-to-play.
- BATTLEGROUNDS MOBILE INDIA was relaunched to re-enter the Indian market, and KRAFTON plans to focus on large-scale e-sports events and localized content.
The Big Picture:
KRAFTON is pursuing a "Scale-Up the Creative" strategy to strengthen its game development and publishing capabilities.
This includes;
- Developing over 20 new games in collaboration with its 11 independent studios.
- Investing in domestic and overseas studios to discover unique creative concepts.
- Implementing deep learning technology to improve gameplay and production efficiency.
US$1=KRW 1,318.40
