PUBG: Battlegrounds recorded its highest quarterly revenue. The steady performance of 'PUBG: Battlegrounds' (hereafter Battlegrounds), which celebrated its 6th anniversary since launch, was a key factor.
Highest Quarterly Revenue... Battlegrounds Plays a Key Role
Krafton announced on the 9th that it recorded 538.7 billion KRW in revenue, 283 billion KRW in operating profit, and 267.2 billion KRW in net profit for the first quarter. The revenue, which grew 3% compared to the same period last year, set a record for the highest quarterly revenue ever. Operating profit decreased by 10.1% year-over-year, but excluding stock compensation costs, it increased by 12% compared to the same period last year. Net profit turned positive compared to the previous quarter.
The record quarterly revenue was driven by increased traffic in the Battlegrounds PC and console segments and the popularity of new paid content. PC revenue grew 68% year-over-year, accounting for 33% of total revenue and significantly contributing to revenue growth.
The mobile segment secured growth momentum through an influx of new traffic. The sandbox mode introduced in the first quarter, called ‘Craft Ground Mode,’ which allows users to create maps themselves, received positive feedback. Despite the suspension of service for Battlegrounds Mobile India (BGMI), growth continued, and the mobile segment is expected to grow further if service resumes in India.
Krafton plans to strengthen its efforts to become a global publisher under the strategic direction of 'Scale Up the Creative.' This strategy aims to discover and maximize growth potential through self-developed games and minority equity investments in creative projects.
A Breather in Q2... Preparing Multiple New Titles Including 'Migloo'
Krafton plans to continue its upward trend with various new titles, including new services utilizing artificial intelligence (AI).
Chief Financial Officer (CFO) Baedong-geun shared during the earnings conference call that Krafton plans to develop and launch a service in North America within this year through Migloo, a project in collaboration with Naver Z. The plan is to develop a game based on 'User Generated Content (UGC)' elements.
He also expressed confidence in deep learning technology. CFO Bae explained, "For example, our in-house demo game 'Deep Day and Night,' which applies deep learning technology to games, has attempted to continue free-topic conversations both inside and outside the game through chatbots that see, hear, remember, and talk. Although players play alone, virtual partners and friends in the game understand the game and suggest strategies through reinforcement learning, laying the foundation for cooperative play."
Krafton currently operates a pipeline for developing 24 new titles. CFO Bae said, "We opened a game studio in Montreal for 'The Bird That Drinks Tears,' and key developers have joined. We are currently defining the core gameplay."
The game project ‘The Bird That Drinks Tears,’ based on the original work by popular fantasy author Lee Young-do, is scheduled for release after 2025.
Additionally, Krafton plans to release the mobile real-time strategy defense game 'Defense Derby' within this year. The root shooter genre game 'Black Budget' aims for release in the second half of next year.
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