Although the Krafton company contains quite different important games, we know that the company has made great income with productions such as PUBG and PUBG MOBILE . Apparently, the success of the games affects the growth of the company in parallel. Because when we look at the first quarter reports of Krafton, we see that the company has made a record revenue statement. The figures and details announced are as follows;
Krafton generated record revenue in the first quarter
KRAFTON reported quarterly revenues of US$405.7 million according to the consolidated financial statements in accordance with the Korean International Financial Reporting Standard (K-IFRS). The quarterly revenue, which increased by 17.8% quarter-on-quarter and 13.5% year-over-year, reached a record high for KRAFTON. You can see Q1 2022 earnings details below:
SUMMARY OF FIRST QUARTER 2022 EARNINGS DETAILS
- Revenue: USD 405.7 million (17.8% quarter-over-quarter and 13.5% year-over-year)
- Operating Profit: USD 241.9 million (+628% quarter-on-quarter and +37% year-over-year)
- Net Profit: USD 190.2 million
The increase in operating profit from quarter to quarter and year over year was driven by reduced operating costs (e.g. marketing costs) and the removal of one-off costs from inventory compensation in 2021.
FACTORS CONTRIBUTING TO QUARTERLY GROWTH
In the first quarter of 2022, PUBG IP showed balanced growth on every platform. As many former users returned to the game following the transition of PUBG: BATTLEGROUNDS to the free-to-play model (F2P) in January 2022, the average number of monthly active users (MAUs) has almost tripled compared to Q4 2021. The number of paying users has more than doubled, thus contributing significantly to the increase in quarterly sales. As a result, PUBG: BATTLEGROUNDS PC sales reached $82.3 million, up 61% year-over-year. PUBG: BATTLEGROUNDS console sales increased by 124% quarter-over-quarter and 274% year-over-year.
PUBG: MOBILE recorded revenue of $307.1 million in the first quarter of 2022, up 30% in the previous quarter, and 5% year-over-year. These increases were due to various in-game IP collaborations and dynamic live support systems.
International markets (other than South Korea) accounted for 95% of KRAFTON’s first quarter 2022 revenue. The company has contributed to the development of the local gaming industry in India by strategically investing in the country’s IT and media ecosystems. Accordingly, BATTLEGROUNDS MOBILE INDIA continued its upward trend in market share and sales.
KRAFTON is set to release new titles this year, such as codenamed “Project M” and The Callisto Protocol. Unknown Worlds, creators of the Subnautica series that KRAFTON acquired in 2021, is developing a new game codenamed “Project M,” which is scheduled for early access this year. “Project M” is a completely unique turn-based strategy game set in the world of science fiction. The Callisto Protocol, an original survival horror game developed by Striking Distance Studios, will also be released in 2022. In addition, in-house project incubation teams are developing deep learning-based games and conducting public tests on Steam.
In addition, the company is working on strengthening its Web 3.0 business and establishing a joint venture with NAVER Z. A team of dedicated NFT research and members with game R&D experience is designing a Sandbox editing tool that can be used to improve games and implement metadata. The team aims to conduct an alpha test in the first quarter of 2023. That’s why KRAFTON plans to make a far-reaching effort to build the Create to Earn (C2E) ecosystem.
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