As you know, the Krafton brand continues its popularity and earnings with PUBG games, but it continues to participate in the race in different lanes. The financial reports of the company, which will distribute games such as The Callisto Protocol and Unknown Worlds, for the first half of 2022 have been announced. The company, which continues its profitability and growth, has a great share in this especially with PUBG Mobile and ranks 2nd in the global market. The explanation and figures are as follows;
Krafton announces financial reports for the first half of 2022
Krafton reported revenues of USD 729.5 million (KRW 946.7 billion) in the first half of 2022, according to the Korean International Financial Reporting Standard (K-IFRS) consolidated financial statements. Overall, first-half 2022 revenue increased by approximately 3% year-on-year, and net profit increased by approximately 31% year-on-year, to US$338.4 million (KRW 439.2 billion), the highest half-year net profit the company recorded to date. KRAFTON’s operating profit margin for the first half of 2022 was 50.1%. Below are the earnings details for the first half of 2022 and Q2 2022:
2022 1ST SEMESTER EARNINGS DETAILS SUMMARY:
- Revenue: USD 729.5 million (KRW 946.7 billion) (+2.86% year-over-year)
- Operating Profit: USD 365.4 million (KRW 474.2 billion) (+18.15% year-over-year)
- Net Profit: USD 338.4 million (KRW 439.2 billion) (+30.97% year-over-year)
SUMMARY OF QUARTER-2022 WIN DETAILS:
- Revenue: USD 326.5 million (KRW 423.7 billion) (-7.77% year-over-year)
- Operating Profit: USD 125 million (KRW 162.3 billion) (-6.81% year-over-year)
- Net Profit: USD 149.4 million (KRW 194 billion) (+37.26% year-over-year)
CONTRIBUTING FACTORS
KRAFTON’s business on the mobile platform recorded revenue of US$550.7 million (KRW 715.6 billion) in the first half of 2022. Launched four years ago, PUBG MOBILE currently ranks second in sales among mobile games globally. The company continues to deliver new content and up-to-date gaming experiences through multiple IP collaborations. The game also has very strict anti-cheat programs to ensure a fairer gaming experience for everyone. KRAFTON’s other mobile game, NEW STATE MOBILE, has continued to evolve, refocusing on the way it maintains its live service and expanding IP collaboration options. Thus, NEW STATE MOBILE’s total playing time and frequency of play increased in the second quarter of 2022.
PUBG: BATTLEGROUNDS, available on PC and consoles, recently celebrated its fifth anniversary. Transitioning to a free-to-play business model in January 2022, the game has maintained a steady stream with more than 8,000 new users per day. Accordingly, average revenue per user (ARPU) increased by more than 20% quarter-over-quarter across all platforms. International markets (excluding South Korea) accounted for 94% of gaming revenue in the second quarter of 2022.
NEW GAMES COMING IN 2022 AND BEYOND
In late August, at Gamescom 2022 in Cologne, Germany, KRAFTON will officially announce the new IP of Unknown Worlds, a sci-fi world with imaginative and turn-based gameplay. Glen Schofield, CEO of Striking Distance Studios, will also be performing at Gamescom Opening Night Live to share new features of The Callisto Protocol, the next-generation survival horror game that will be released on December 2, 2022.
KRAFTON also recently announced that it has begun active development on an untitled game project based on the popular Korean fantasy novel The Bird That Drinks Tears. KRAFTON has stepped up its effort to recruit the best global talent to help it realize its ambitious vision, and the game’s official website was recently launched. In addition to the website, new concept art and other details were also presented to further illustrate the overall visual identity and tone of the project. To define this visual identity, the company is working with renowned concept artist Iain McCaig, who has been involved in early character visualizations of Star Wars characters, as well as his work in several blockbuster film franchises such as The Avengers, Harry Potter and Terminator. At the end of 2022, KRAFTON plans to publish an art book highlighting the visual R&D results of the past two years.
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