Krafton’s revenue and operating profit in H1 2024 reach record highs

South Korean publisher and developer Krafton announced its financial results for the second quarter of 2024. The company reported record-high revenue and operating profits, setting records in the first half of the year.

In the second quarter of 2024, Krafton reported earnings of approximately $532 million, bringing its first-half results to $1.04 billion. Compared to the same periods in the previous year, Krafton’s revenues increased by 83% compared to the second quarter of 2023 and by 48% compared to the first half of 2023. Combined, the first and second quarters of 2024 set record sales results for two consecutive quarters.

In the first half of 2024, both PC and Mobile saw strong growth compared to the previous year. Compared to the first half of 2023, PC revenue increased by 47% and Mobile revenue increased by 52%. However, console revenue decreased by 23% during the same period.

Currently, about two-thirds of Krafton’s revenue comes from mobile products, while PC and consoles together make up about one-third. Since 2020, PC and consoles have doubled their share of Krafton’s revenue — increasing from 17% in the first half of 2020 to 33% in the first half of 2024.

Similar to revenue, Krafton set a new operating profit record for the first half of 2024. During this period, the company earned approximately $485 million in operating profit — 55% more than in the first half of 2023. In fact, the company’s operating profits in the first half of 2023 have already reached 84% of its full-year operating profit for 2023.

According to Krafton, this record-breaking growth is due to the continued growth of the PUBG franchise. Active users and paid users for the battle royale title increased in the first half of 2024 on both PC and mobile devices. On PC, monthly active users increased by 40% and paid users increased by 130% in the first half of 2024 compared to the first half of 2023. Meanwhile, PUBG Mobile’s daily active users increased by 30% and paid users increased by 40% during the same period.

Krafton’s Growth Strategy

With this funding, Krafton has invested in new games and new studios for second-party publishing. Internally, Krafton is preparing for two major releases in 2024: the extractive RPG Dark and Darker Mobile and the life simulator Inzoi.

Externally, Krafton has acquired or invested in 27 studios as of 2022, with 11 of those acquisitions occurring in 2024. Most recently, Krafton acquired the development team behind Tango Gameworks — best known for 2023 hit Hi-Fi Rush.

Krafton is also challenging the status quo of layoffs by adding to its workforce. The company has 3,409 employees — about 10% more than it did at the start of 2024.

Going forward, Krafton’s sustainable growth strategy includes continued investment in the PUBG IP and continued securing new IP through strategic acquisitions. The company has revealed plans to create new games across genres using the PUBG IP that will work in tandem with its core product. Part of this strategy is investing in fandom expressions such as esports and local content.

Additionally, Krafton is emphasizing its use of AI to drive gameplay innovation. In the second half of 2024, the company will fully launch two new titles—Magical Mic Duel and Uncover the Smoking Gun—that leverage AI for emergent gameplay.