KRAFTON (259960) investor relations material

Executive summary

• Q1 2026 revenue reached KRW 1,371.4 billion, with operating profit of KRW 561.6 billion and net profit of KRW 514.1 billion, driven by strong PUBG IP performance, mobile growth, and expansion in game and advertising segments.

• Achieved record-high 1Q revenue, with PUBG IP franchise revenue exceeding KRW 1 trillion for the first time in a quarter.

• Game segment contributed 79.5% of sales, advertising 20.5%, with Asia as the largest market at 67.6% of revenue.

• Strategic investments in new IPs, AI technology, and global expansion, including major acquisitions and partnerships, underpin growth.

• Growth driven by higher user engagement, expanded monetization, and strong performance across core services.

Financial highlights

• Revenue: KRW 1,371.4 billion (+56.9% YoY, +49.1% QoQ); operating profit: KRW 561.6 billion (+22.8% YoY); net profit: KRW 514.1 billion (+38.4% YoY).

• Adjusted EBITDA: KRW 622.9 billion (+23.3% YoY); operating expenses: KRW 809.9 billion (+94.3% YoY), with a notable rise in one-off personnel expenses.

• Basic EPS: KRW 11,701; diluted EPS: KRW 11,603.

• Cash and cash equivalents: KRW 3,097.3 billion at end of 1Q26.

• Dividend payout: KRW 99.6 billion approved for FY2025.

Outlook and guidance

• Early access for Subnautica 2 remains on track, with launch planned as originally scheduled.

• Q2 revenue momentum expected to remain strong, driven by PUBG collaborations and mobile sales, with positive outlook for sustaining growth.

• Plans to evolve PUBG into a content platform, expand in emerging and Western markets, and prepare for PUBG 2.0.

• inZOI to become a UGC-driven live service IP, with console porting and AI scripting mod tools planned for 2Q–3Q 2026.

• Continued investment in AI to enhance player experiences and operational efficiency.