KRAFTON Inc. The investor relations (IR) announced their earnings on the third quarter of 2024 in the briefing. The sales of 719,3 billion KRW (17,6 billion TRY) on the basis of the appropriate consolidated financial statements of the investor relations (K-IFRS). This is the highest level ever on the quarter basis, representing the annual increase of 269 billion KRW (+59,7) (6,6 billion TRY) and 135,1 billion KRW (+71,4) (3,3 billion TRY).

The cumulative sales up to the third quarter of this year reached 2,09 trillion Krw (51,3 billion TRY) for the first time since the establishment of the company passed 2 trillion KRW (49,1 billion TRY). Total business profits also signed a new record with 967 billion KRW (23,7 billion TRY).

We took a considerable growth in all areas including KRAFTON’s Cfo’s DK Bae topic, “PUBG: BATTLEGRUNDS (hereinafter referred to as PUBG) Ip based on various services, sales and traffic. AI technology that we developed through continuous investment and research entered the application phase and is ready to be used in full scale through various services including inzoi, he expressed with words. Important achievements in the third quarter of the third quarter of the

2024

KRAFTON continues to provide new experiences to users around the world thanks to its improved live service and updates. Map updates in the third quarter have improved even more traffic and profitability in the global diameter thanks to the new game modes and a variety of business associations.

</ For PC/consol versions, the Lamborghini collaboration in July reaches the highest sales figure for a single product, the Taego map update and the number of simultaneous users with the new "Drive" mode added in September reached 890.000, a new traffic record after passing the free play. If on the mobile platform, the sales performance continues to heal with new themed modes and efficient business model management.

New games, investments and important initiatives in India

KRAFTON monitors “Scale-Up the Creative” strategy to actively explore original gaming Ips in different platforms and genres, to strengthen its position in the global market. The company prepares various new games including inzoi, Dark and Darker Mobile, Subnautica 2, Project ARC and Dinkum Together within this strategy. Inzoi and Dark and Darker Mobile have a great interest in Western gaming lovers at Gamescom, held in August. Subnautica 2 will come with multiplayer mode to deliver a new gaming experience. Project ARC and Dinkum Together will appear first time in G-Star held this month.

In the third quarter, capital investments to gaming developers were invested in a total of five investments in order to secure opportunities in the second-party publishing (2PP) and discover new Ips, including the signing of license agreements. The company has bought the license of Palworld Ip, which has gained popularity in the global diameter since its release in 2024, to move to mobile devices. The mobile version of the game is developed by PUBG Studios. In addition, the company is a new collaboration with Day4Night, which consists of names behind various games such as Mario + Lordds series.

<img=" In the Indian market, Battlegrunds Mobile India (hereinafter referred to as BGMI) traffic continues to rise due to the successful increase and localized content of new users. BGMI expands local languages for those who don’t speak Hindi and hosts large-scale esports tournaments that concentrate on traffic in India. KRAFTON also strengthens its business portfolio by conducting local publishing activities in India and plans to publish a local version of Cookie Run by establishing partnership with Devsisters in year.

Important new AI investments

KRAFTON was conducting research in various projects by noticeing the potential of the artificial intelligence in the early period. The company founded Deep Learning Division (Derin Learning Department) to secure important artificial intelligence technologies such as image and animation, speech recognition (STT/TTS) and reinforced learning (RL) in 2022. This situation led to the publication of numerous articles in prestigious AI conferences such as Neurips, ACL and COLT.

The focus of this year was the implementation of the games of artificial intelligence technologies accumulated. KRAFTON’s life simulation inzoi introduced 3D printer feature for the first time in the gaming industry and positive reactions from users worldwide. The game also plans to offer a new gaming experience by implementing Slm as a chatbot and motion generation technology.

KRAFTON aims to make innovation in gaming experiences by developing a ‘CPC (Adjustable Character) that can interact with users in the long run. Unlike existing game Npcs, Cpcs are like playing games and they are able to chat with users and collaborate with them; which allows them to adapt to different scenarios in a similar flexibility to humans. KRAFTON plans to apply CPC technology to other games such as PUBG and inzoi.