Krafton, the South Korean publisher and developer, has announced its financial results for the second quarter of 2024, revealing record-breaking revenue and operating profits. In Q2 2024, Krafton’s earnings reached approximately $532 million, bringing its H1 performance to $1.04 billion. This represents an 83% growth in revenue from Q2 2023 and a 48% growth from H1 2023. These results mark two consecutive quarters of record-high sales for the company.
When examining the revenue breakdown, it is evident that both the PC and mobile sectors experienced significant gains compared to the previous year. PC revenue increased by 47% in H1 2024, while mobile revenue grew by 52%. However, console revenue saw a decline of 23% during the same period.
Interestingly, the share of revenue generated by PC has been steadily growing. Currently, about two-thirds of Krafton’s revenue comes from its mobile products, while PC and console combined account for about a third. Since 2020, PC and console have doubled their share of Krafton’s revenue, increasing from 17% in H1 2020 to 33% in H1 2024.
The success of Krafton’s financial results can largely be attributed to the sustained growth of its popular PUBG franchise. In H1 2024, PUBG’s active users and paying users increased on both PC and mobile platforms. On PC, monthly active users grew by 40%, while paying users saw a remarkable growth of 130% compared to H1 2023. Similarly, PUBG Mobile experienced a 30% increase in daily active users and a 40% increase in paying users during the same period.
With these impressive financial results, Krafton has been investing in new games and studios for second-party publishing. The company has two major releases planned for 2024: extraction RPG Dark and Darker Mobile and life simulator Inzoi. Additionally, Krafton has acquired or invested in 27 studios since 2022, with 11 of these acquisitions taking place in 2024. One notable acquisition is the development team behind the successful 2023 game Hi-Fi Rush.
To sustain its growth, Krafton is expanding its headcount, with a 10% increase in employees since the beginning of 2024. The company’s growth strategy revolves around further investment in the PUBG intellectual property (IP) and securing new IPs through strategic acquisitions. Krafton plans to create new games in various genres featuring the PUBG IP that complement its core product. Additionally, the company is investing in fandom expression, such as esports and localized content.
Furthermore, Krafton is leveraging AI technology to drive gameplay innovations. In the second half of 2024, the company will fully launch two new titles, Magical Mic Duel and Uncover the Smoking Gun, which utilize AI for emergent gameplay.
Overall, Krafton’s financial results showcase its strong performance and growth in the gaming industry. The company’s focus on its popular PUBG franchise, strategic acquisitions, and investment in new IPs and gameplay innovations position it as a key player in the market. As Krafton continues to expand and diversify its portfolio, gamers can expect exciting new releases and experiences in the coming years.