KRAFTON (259960) Q1 2025 earnings summary

Executive summary

• Achieved record-high Q1 2025 revenue of KRW 874.2 billion, up 31% year-over-year, with 95% from overseas markets and mobile accounting for 60.9% of sales, driven by PUBG IP and new title inZOI.

• Operating profit reached KRW 457.3 billion, up 47% year-over-year, with a margin of 52.3%.

• Net profit was KRW 371.5 billion, up 6.6% year-over-year but down 24.4% sequentially, impacted by foreign exchange effects.

• inZOI sold over 1 million copies within seven days of launch, with 95% of sales from global markets, establishing itself as a promising new IP.

• Maintained strong global presence with 35 consolidated subsidiaries and continued expansion through acquisitions and new studio launches.

Financial highlights

• Q1 PC platform revenue: KRW 323.5 billion, up 33% year-over-year and 39% sequentially.

• Q1 mobile platform revenue: KRW 532.4 billion, up 32% year-over-year and 47% sequentially, accounting for 60.9% of sales.

• Q1 console platform revenue: KRW 13.1 billion, up 14% year-over-year and 7% sequentially.

• Adjusted EBITDA for Q1: KRW 505.1 billion, up 33% year-over-year, with a margin of 57.8%.

• Cash and cash equivalents: KRW 555.1 billion; total assets: KRW 8,347.1 billion.

Outlook and guidance

• Expect continued growth for PUBG IP across platforms, with new content, collaborations, and esports events planned.

• Unreal Engine 5 update and user-generated content to roll out starting in the second half of the year, aiming to extend PUBG's lifecycle.

• Subnautica 2 early access launch scheduled for the second half of 2025, with high expectations based on prequel's 8 million sales.

• Ongoing investments in AI technology and new IPs, with official inZOI launch planned for 2026.

• Aggressive investment in R&D and M&A, targeting new markets such as India and the Middle East.