KRAFTON, Inc. reports sales of US$729.5 million (KRW 946.7 billion) for the first half of 2022
KRAFTON, Inc., developer of the battle royale game PUBG: Battlegrounds, headquartered in South Korea, today announced its preliminary results for the first half of 2022. Krafton reported sales of US$729.5 million (KRW946.7 billion) in the first half of 2022, according to consolidated financial statements prepared according to Korea’s International Financial Reporting Standard (K-IFRS).
Overall, revenue for the first half of 2022 rose nearly 3% year over year and net income rose nearly 31% to $338.4 million (KRW 439.2 billion), the company’s highest half-year net income to date Has.
KRAFTON’s operating profit margin was 50.1% in H1 2022. Here are more details on the H1 2022 and Q2 2022 results:
Summary of results for H1 2022:
- Revenue: $729.5 million (KRW 946.7 billion) (+2.86% YoY)
- Operating Profit: $365.4 million (KRW 474.2 billion) (+18.15% YoY)
- Net Income: $338.4 million (KRW 439.2 billion) (+30.97% YoY)
Summary of results for Q2 2022:
- Revenue: $326.5 million (KRW 423.7 billion) (-7.77% YoY)
- Operating profit: $125 million (KRW162.3 billion) (-6.81% YoY)
- Net Income: $149.4 million (KRW 194 billion) (+37.26% YoY)
Factors that contributed to the growth
KRAFTON’s mobile business posted revenue of US$550.7 million (KRW715.6 billion) in the first half of 2022. Published four years ago PUBG MOBILE is currently the world’s second-biggest sales driver among mobile games. The company continuously offers new content and gaming experiences through its numerous collaborations with well-known IPs.
To ensure fair play for all, the game has also implemented stricter anti-cheat programs. But also KRAFTON’s other mobile titles, NEW STATE MOBILE, contributed to the growth. After its reorientation to a live service model, the game was continuously developed and expanded through numerous cooperations. As a result, total playing time and game frequency increased NEW STATE MOBILE in the second quarter of 2022.
PUBG: Battlegrounds, available on PC and consoles, recently celebrated its fifth anniversary. The game, which switched to a free-to-play business model in January 2022, sees a steady influx of more than 80,000 new users per day. Accordingly, average revenue per user (ARPU) across all platforms increased by more than 20% sequentially. International markets (outside South Korea) contributed 94% of the game’s sales in Q2 2022.
New games for 2022 and beyond
At gamescom 2022, taking place in Cologne at the end of August, KRAFTON will officially unveil the new Unknown Worlds IP. This is set in a sci-fi world and offers an imaginative setting and turn-based gameplay. Glen Schofield, CEO of Striking Distance Studios, will also offer a new look at The Callisto Protocol at gamescom Opening Night Live. The next-generation survival horror game is slated for release on December 2nd, 2022.
KRAFTON also recently announced that it has begun active development of an untitled game project based on the popular Korean fantasy novel The Bird That Drinks Tears.