KRAFTON (259960) Q4 2024 earnings summary

Executive summary

• Achieved record-high annual revenue of KRW 2.71 trillion in 2024, up 42% year-over-year, driven by PUBG IP growth and global expansion.

• Operating profit reached KRW 1.2 trillion, a 54% increase year-over-year, with net profit surging 119% to KRW 1.3 trillion.

• PUBG PC and mobile platforms saw strong user engagement and monetization, with BGMI in India reaching record highs.

• Strategic focus on developing new franchise IPs, AI adoption, and expanding into new genres and markets.

• Announced a five-year plan targeting KRW 7 trillion in revenue and doubling corporate value.

Financial highlights

• 2024 annual revenue: KRW 2.71 trillion, up 42% year-over-year; Q4 revenue: KRW 617.6 billion, up 16% year-over-year.

• PC platform annual revenue: KRW 941.9 billion, up 61% year-over-year; Q4 PC revenue: KRW 232.6 billion, up 39%.

• Mobile platform annual revenue: KRW 1.69 trillion, up 36% year-over-year; Q4 mobile revenue: KRW 362.2 billion, up 6%.

• Operating profit: KRW 1.18 trillion, up 54% year-over-year; Q4 operating profit: KRW 215.5 billion, up 31%.

• Net profit: KRW 1.30 trillion, up 119% year-over-year; Q4 net profit: KRW 491.2 billion.

Outlook and guidance

• Five-year revenue target of KRW 7 trillion, with 60% from PUBG IP and 40% from new IPs.

• Annual development budget to increase to KRW 300 billion for the next five years.

• Double-digit growth expected for PUBG IP in 2025, despite a high base from 2024.

• Strategic focus on launching new titles such as inZOI, Dark & Darker Mobile, Subnautica 2, and Dinkum in 2025.

• Continued investment in AI, new game titles, and global market expansion, especially in India.