KRAFTON (259960) Q2 2025 earnings summary

Executive summary

• Achieved record-high first-half 2025 revenue of KRW 1.5362 trillion, up 11.9% YoY, and operating profit of KRW 703.3 billion, up 10% YoY, driven by PC and mobile growth, strong content updates, and marketing campaigns.

• Net profit for 2Q25 dropped sharply to KRW 15.5 billion, down 95.4% YoY, mainly due to FX-related losses.

• Focused on expanding global publishing, securing new franchise IPs, and targeting KRW 7 trillion in revenue and doubled corporate value by 2029.

• inZOI emerged as a successful new IP, selling over 1 million units and topping charts in 27 countries, becoming the fastest-selling Korean package game.

• Significant investments in new studios and IPs, including the acquisition of Eleventh Hour Games and Last Epoch IP, minority investments in global studios, and increased stake in Neptune.

Financial highlights

• 1H25 revenue: KRW 1,536.2 billion (up 11.9% YoY, up 14.9% HoH); 2Q25 revenue: KRW 662.0 billion (down 6.4% YoY, down 24.3% QoQ).

• 1H25 operating profit: KRW 703.3 billion (up 9.5% YoY); 2Q25 operating profit: KRW 246.0 billion (down 25.9% YoY, down 46.2% QoQ).

• 1H25 net profit: KRW 387.0 billion (down 43.9% YoY); 2Q25 net profit: KRW 15.5 billion (down 95.4% YoY, down 95.8% QoQ).

• Adj. EBITDA for 1H25: KRW 801.4 billion (up 3.7% YoY); 2Q25 Adj. EBITDA: KRW 296.3 billion (down 24.8% YoY, down 41.3% QoQ).

• PC revenue for 1H25: KRW 543.2 billion (up 24.9% YoY); mobile: KRW 960.0 billion (up 6.4% YoY); console: KRW 22.9 billion (up 13.1% YoY).

Outlook and guidance

• Plans to maintain growth momentum with new content, collaborations, and marketing, especially for PUBG and BGMI.

• Targeting KRW 7 trillion revenue and doubled corporate value by 2029, with PUBG IP aiming for KRW 4 trillion and new IPs for KRW 3 trillion in five years.

• Subnautica 2 early access launch delayed to 2026 after leadership change to ensure quality.

• Ongoing investment in AI technology and new IPs, with several AAA titles in development and a focus on long-term franchise building.

• New shareholder return program to be announced in early 2026 after current three-year plan expires.