KRAFTON (259960) Q4 2024 earnings summary

Executive summary

• Achieved record-high annual revenue of KRW 2.71 trillion in 2024, up 41.8% year-over-year, driven by strong PUBG IP performance across PC, console, and mobile platforms.

• Operating profit reached KRW 1.2 trillion, a 54% increase year-over-year, with net profit surging 119.3% to KRW 1.3 trillion.

• PUBG PC and BGMI in India posted record user traffic and revenue, with PUBG Mobile maintaining leadership in emerging markets.

• Announced a five-year growth plan targeting KRW 7 trillion in revenue, with 60% expected from PUBG IP and 40% from new franchises.

• Strategic focus on expanding franchise IPs, AI-driven gameplay, and global market penetration, especially in India.

Financial highlights

• FY2024 revenue: KRW 2,709.8 billion (up 41.8% YoY); Q4 revenue: KRW 617.6 billion (up 16% YoY).

• PC platform annual revenue grew 61% YoY to KRW 941.9 billion; mobile platform revenue rose 36% to KRW 1.69 trillion; console revenue declined 20% YoY to KRW 44.3 billion.

• Operating profit for 2024 was KRW 1.18 trillion, up 54% YoY; net profit was KRW 1.30 trillion, up 119% YoY; Q4 net profit surged 305% QoQ to KRW 491.2 billion.

• Adjusted EBITDA for 2024 was KRW 1,391.3 billion, up 54% YoY, with a margin of 51.3%.

• Operating expenses for 2024 rose 33.7% YoY to KRW 1,527.3 billion; operating profit margin improved to 43.6%.

Outlook and guidance

• Five-year revenue target set at KRW 7 trillion, with double-digit annual growth expected for PUBG IP.

• Annual development budget to increase to KRW 300 billion for the next five years to support new IP and global publishing.

• Continued investment in AI and deep learning to enhance gameplay and user experience.

• Plans to launch major new titles including inZOI, Dark and Darker Mobile, Subnautica 2, and Dinkum.