PUBG maker Krafton posts record half-year earnings

Korean firm to keep investing in expanding portfolio, bolstering intellectual property

An illustration of PUBG: Battlegrounds' Erangel Classic map update (Krafton)

Krafton posted record earnings for the first half of this year on the strong output from its popular battle royale shooter PUBG: Battlegrounds, the Korean game developer announced Monday.

According to the announcement, Krafton logged 1.37 trillion won ($1 billion) in revenue and 642.6 billion won in operating profit in the January-to-June period this year, up 48.3 percent and 55 percent on year, respectively.

For the second quarter alone, the game developer reported 707 billion won in revenue and 332.1 billion won in operating profit, both new highs for quarterly figures.

Behind the record-breaking numbers, Krafton pointed to the continued success of PUBG across all platforms.

For the game’s computer and console versions, the company said the shooting game’s traffic rose due to the Erangel Classic map update and the collaboration with K-pop group NewJeans. According to the company, the number of monthly active users increased by 40 percent on year in the first half of 2024 while the number of users who pay to purchase in-game items more than doubled during the same period.

The company said PUBG Mobile and Battlegrounds Mobile India, or BGMI -- the two mobile versions of PUBG’s intellectual property -- also received positive feedback from users through the launch of localized content as the mobile versions’ monetization models have been advanced to achieve tangible growth.

The company underscored that PUBG Mobile’s collaboration with famous Middle Eastern actors and the introduction of upgradable outfits contributed to a boost in traffic and sales. BGMI drew in new users with the US Bonus Challenge update, an event that allows players to win exclusive in-game rewards, and collaboration with local cricket team Mumbai Indians to introduce cricket-themed in-game items.

Krafton plans to launch two new major titles -- Dark and Darker Mobile, a fantasy extraction role-playing game, and Inzoi, a life simulation game -- in the second half of this year. According to the company, both of them will be showcased at Gamescom slated to begin in Cologne, Germany, on August 21. The mobile RPG is set for a global launch in the fourth quarter while the life simulation game is expected to open early access for gamers before the end of this year.

Krafton has invested in 27 companies -- 14 of them in North America and eight in Europe -- since 2021 as it continues to look for new intellectual property to diversify gaming genres and platforms.

Earlier in the day, Krafton announced the decision to scout the personnel from Tango Gameworks, a Japanese game developer, to mark the company’s first significant investment in Japan. Established in 2010, Tango Gameworks has developed hit titles such as Hi-Fi Rush, a rhythm-based action combat game, and The Evil Within, a survival horror game. The company was acquired by Microsoft in 2021 but closed its doors in May this year.

By Kan Hyeong-woo(hwkan@heraldcorp.com)