Q1 Sales Reach 665.9 Billion Won, 'Record High'
The momentum of Krafton's flagship IP (intellectual property), 'Battlegrounds,' shows no signs of slowing down. As global success continues, the company has recorded its highest quarterly revenue ever.
Krafton announced on the 8th that it posted consolidated revenue of 665.9 billion KRW in the first quarter of this year. This figure represents a 23.6% increase compared to the same period last year, marking the highest quarterly revenue in the company's history. Operating profit rose 9.7% year-on-year to 310.5 billion KRW.
Baedonggeun, Krafton's Chief Financial Officer (CFO), said during a conference call immediately after the earnings announcement, "This result is the outcome of the extensive experience and efforts accumulated over a long period of servicing PUBG, aligning perfectly with important strategic directions such as the transition to free-to-play."
Revenue by business segment was ▲ PC & console 255.2 billion KRW ▲ mobile 402.3 billion KRW ▲ others 8.4 billion KRW. Through various live services utilizing the Battlegrounds IP, the company achieved high growth in all areas including revenue and traffic.
Krafton plans to focus on securing stable traffic and advancing monetization models to sustain this momentum, while actively promoting investment and development for the IP franchise.
CFO Bae stated, "This year, we have made a total of 10 investments, including 9 in the first half, accelerating the discovery of scalable creative talents. These efforts will serve as Krafton's long-term growth engine."
He added, "Redrover Interactive, which we invested in during the first quarter, is developing a survival PVP game based on the Snowpiercer concept. Through the C77 investment, we secured new IP and development capabilities and are developing a multiplayer first-person shooter genre."
The Battlegrounds PC & console segment achieved its highest monthly active users (MAU) and revenue since the transition to free-to-play in 2022, fueled by the popularity of the Rondo map update released in Q4 last year and the growth-type weapon skins launched in Q1 this year. The mobile segment also saw steady traffic growth, supported by the 6th anniversary themed mode and Homeground content.
Battlegrounds Mobile India (BGMI) expanded user interest through content aligned with local Indian festivals and joint marketing with Bollywood films, while also enhancing profitability by launching a UniPin web store, a third-party payment platform. Krafton aims to become the top publisher in the Indian market by focusing on stable BGMI service and leveraging diverse publishing experience and game-centric investments this year.
CFO Bae explained, "Alongside stable BGMI service, we are concentrating on diverse game publishing and game-centric investments. We aim to publish six new games in India this year and have already launched two games, including 'Bullet Echo India,' on the 25th of last month."
He continued, "Through this, we intend to confirm the demand and growth potential of the Indian game market and accumulate experience and attempts with local content. This year, we plan to focus even more on game-related investments for new game publishing and live services."
Positive outlooks were also shared for the upcoming title 'Dark and Darker Mobile.' Previously, Krafton conducted a five-day closed beta test limited to the Korean region last month, recruiting over 50,000 participants. Krafton plans to enhance the game's completeness based on user feedback during the beta test period and focus on a global launch through phased marketing expansion in the second half of the year.
CFO Bae said, "We saw positive indicators across the board, including pre-registration numbers exceeding expectations. We also confirmed user reactions to the core fun elements to some extent. I believe there is anticipation for the official launch."
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