What is the driving force behind Krafton, a domestic listed game company's largest quarterly sales in the first quarter of this year?
Apr 29, 2025
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In addition, it is expected to surpass 3 trillion won in annual sales as the second Korean game company after Nexon.
Krafton held a corporate briefing (IR) on the 29th and announced its business performance in the first quarter of 2025. It said it recorded 874.2 billion won in sales and 457.3 billion won in operating profit in the first quarter of 2025 based on consolidated financial statements applying the Korean International Financial Reporting Standards (K-IFRS). It is the largest quarterly performance ever, and sales and operating profit increased by 31.3% and 47.3%, respectively, compared to the same period last year. The operating profit ratio reached a whopping 52.31 percent.
By business division, mobile accounted for 61% of the total with 532.4 billion won, with online (PC) 323.5 billion won and consoles and other 18.3 billion won in sales. On the PC platform, 'Battlegrounds'IP-centric content diversification and strong live service operations drove Q1 earnings. According to Krafton, the initial box office performance of the new IP inZOI was also effective.
In the case of mobile, it was also found that it led sales in Korea, China, and India, focusing on 'Battleground Mobile'. It contributed to a new sales record with premium items, IP collaboration, and localization strategies, and in particular, the localized version of the Indian version of Battleground Mobile India(BGMI) led users to a great response by collaborating with famous local companies such as Indian carmaker Mahindra, which recorded the highest sales among the localized contents of 'BGMI', according to the company.
In the end, Krafton highlighted that the quarter's largest performance was achieved through the expansion of the 'Battlegrounds' IP franchise and the strategy of securing the 'Big Franchise IP'.
'Battleground' has proven its value as a sustainable service, with the maximum number of concurrent users exceeding 1.4 million in March after its free service. In the future, Krafton emphasized that it will enhance the user experience by upgrading content such as collaborating with artists and brands, applying new maps and modes, and accelerate the expansion of platforms and genres that encompass new generations and global markets with new 'Battlegrounds' IP-based works.
According to Krafton, the extension shooting genre 'Project Black Budget', battle royale console game 'Project Valor', and top-down tactical shooting new 'PUBG: Blindspot' (PUBG: BLINDSPOT) are representative. In addition, the transition to Unreal Engine 5-based live-action graphics and the introduction of UGC (user creative content) will provide a fresh experience and further leapfrog 'Battleground' into a 'PUBG 2.0' gameplay platform.
The first new product in a long time, 'Injoi', following the BattlegroundsIP, sold more than 1 million copies in a week after entering early access on March 28, marking the fastest box office record for Krafton's overall IP. In particular, about 95% of all sales occur overseas, and the company once again proved the possibility of global box office success of the original Krafton IP following 'Battlegrounds', according to the company. In the future, Krafton plans to introduce new gameability to the market by upgrading AI technologies such as Smart Zoi using CPC (Co-Playable Character) technology and foster it as a big franchise IP that can provide long-term services in the global market.
In addition, it announced that it will also pursue optimized development and publishing strategies for each new work.
As a representative example, the survival life simulation PC game 'Dinkum began publishing in February and expanded its supporting language to 14 to strengthen its service, and started to tap into the global market in earnest starting with its official launch on the 23rd. Future releases of console and spin-off games 'Dinkum Together' will expand the platform and user community and lay the foundation for IP franchises. 'Subnautica 2' (Subnautica 2) is scheduled to be released as an early access this year, implementing a community snowball publishing strategy that quickly reflects user evaluation and reviews.
Meanwhile, in India, a key strategic country, he emphasized that he would further solidify his position as a publisher based on the solid growth of 'BGMI'.
It said that it will continue to grow by providing attractive content and marketing to local users as well as promoting various collaborations. Earlier in March, it secured management rights for Nautilus Mobile, securing India's leading mobile cricket game 'Real Cricket' (Real Cricket) IP, which has 250 million cumulative downloads and more than 10 million monthly active users (MAU). In the future, Krafton said that it plans to expand its user base by strengthening customized strategies tailored to regional characteristics, actively publishing new works and finding new business opportunities, and discovering a `second BGMI.'
This article was translated by Naver AI translator.
