According to Krafton’s first quarter report, quarterly sales continue to increase, driven by continued growth in the PC, console and mobile segments.
KRAFTON, Inc., the South Korean company and publisher of PUBG: BATTLEGROUNDS and The Callisto Protocol, shared its 2023 Q1 earnings announcement on May 9. The company posted record sales of KRW 538.7 billion (US$ 407.8 million) in three months, up 13.7% on a quarterly basis and 3% year-on-year.
Krafton announces first quarter 2023 financials
Operating Profit increased by 124.3% QoQ to KRW 283 billion (US$ 214.2 million), while Operating Profit Margin (OPM) increased by 53%. With a Net Profit of KRW 267.2 billion (US$ 202.2 million), the company made a profit on a quarterly basis while maintaining a Net Profit Margin of 50%.
2023 Q1 earnings summary
- Sales: KRW 538.7 billion (USD 407.8 million)
- Operating Profit: 283 billion KRW (214.2 million USD)
- Net Profit: KRW 267.2 billion ($202.2 million USD)
FACTORS
KRAFTON’s flagship game PUBG: BATTLEGROUNDS hit an all-time high in PC and console in-game sales. PC sales rose 28% QoQ and 68% YoY, accounting for 33% of total sales. Celebrating PUBG’s 6th anniversary in March, the development team plans to maintain momentum with several updates, including improvements to Arcade mode, a new Clan system, several brand collaborations, and a new map version.
KRAFTON’s mobile division also saw growth with the Q1 introduction of World of Wonder, a sandbox mode in PUBG MOBILE that allows users to create their own maps. Company; Marvel plans to increase monetization efficiency in the second quarter through new skin launches and greater collaboration with global brands, including Netflix, Tesla, building on the success of previous in-game activations.
LOOKING FORWARD
KRAFTON is working strategically to expand its role as a global publisher by exploring creativity and scaling growth through self-developed games and minority stake investments. The company focuses on developing a production process that includes extensive review and testing, as well as establishing a healthy communication system between KRAFTON and independent studios.
Since early 2023, KRAFTON has focused on securing global second-party publishing capabilities through in-house game development and minority investment. The company plans to create a virtual organization to better support the 24 project lines being developed in its ecosystem.
KRAFTON is also committed to researching deep learning technologies to shorten game development time and implementing various features in games with proactive investments. Recently, papers published by KRAFTON’s Deep Learning Department were accepted at high-level conferences, and the company began implementing technologies that enable cooperative gameplay in games.