Krafton Soars Without NFT, Surpasses IPO Price Wall to Reach New High

Four Consecutive Trading Days of Record Highs
3Q Strong Earnings and New Releases as Overlapping Positive Factors
Calm Stance on Trending NFTs

[Asia Economy Reporter Minwoo Lee] Krafton recorded an all-time high, clearly surpassing its IPO price, which it had struggled to exceed since listing. Unlike other game stocks that recently rose by mentioning non-fungible tokens (NFTs) and related businesses, Krafton led the upward trend solely on the anticipation of its new release's success.

As of 9:05 AM on the 16th, Krafton's stock price reached 563,000 KRW, setting a new record high. It has been hitting new highs for four consecutive trading days since the 11th. The stock price has risen more than 24% in just one week since the 8th. This contrasts sharply with the three months after its listing on August 10, during which the closing price exceeded the IPO price of 498,000 KRW on only two days until the 10th.

Notably, while game stocks such as NCSoft, Wemade, and Com2uS surged on expectations after announcing NFT-related businesses, Krafton's performance was driven by strong earnings and the success of its new release. On the 11th, Krafton announced consolidated Q3 sales of 521.9 billion KRW and operating profit of 195.3 billion KRW, representing increases of 42.3% and 16.5% year-over-year, respectively. Along with strong earnings, the highly anticipated new title, BattleGrounds: New State, was simultaneously launched in over 200 countries worldwide. Reflecting its popularity, with pre-registrations reaching 55 million, the game surpassed 2.7 million daily active users (DAU) just 1 hour and 30 minutes after launch. The following day, user numbers surged further, prompting an emergency maintenance.

Regarding NFTs, Krafton acknowledged their potential but emphasized the importance of the core game content itself. This stance shows a somewhat different tone compared to other companies that competitively announce related business initiatives. Krafton's Chief Financial Officer, Donggeun Bae, stated during the earnings conference call, "We are reviewing how NFTs can expand into new gaming methods and play styles, and we are conducting research through investments. However, for in-game currency to have meaningful content value, ultimately, the competitiveness and fun of the game itself are crucial."