AMSTERDAM, NETHERLANDS - Feb. 9, 2023 - KRAFTON, Inc., the South Korean company responsible for PUBG: BATTLEGROUNDS and The Callisto Protocol, recently shared its preliminary 2022 earnings announcement. According to consolidated financial statements in accordance with the Korean International Financial Reporting Standard (K-IFRS), the company posted 1.854 trillion KRW ($1.47 billion USD) in sales throughout 2022. As a whole, 2022 Operating Profit (751.6 billion KRW / $596 million USD) was up 15.5% YoY, driving an Operating Profit Margin of 41% despite overall sales being slightly down YoY (-1.7%). In Q4 2022, KRAFTON achieved 473.8 billion KRW ($375.7 million USD) in sales, up 6.8% YoY, and drove an Operating Profit of 126.2 billion KRW ($100 million USD), up 178.8% YoY.
SUMMARY OF 2022 OVERALL EARNINGS:
- Revenue: 1.854 trillion KRW ($1.47 billion USD)
- Operating Profit: 751.6 billion KRW ($596 million USD)
- Net Profit: 500.2 billion KRW ($396.6 million USD)
The January 2022 free-to-play transition of PUBG: BATTLEGROUNDS added 45 million new users throughout 2022, driving 465 billion KRW ($368.7 million USD) in PC sales, up 17% YoY. On consoles, PUBG: BATTLEGROUNDS secured 104.1 billion KRW ($82.5 million USD) in sales, up 430% YoY. Overall, PUBG: BATTLEGROUNDS accounted for 31% of overall 2022 KRAFTON sales. In addition to strong PUBG: BATTLEGROUND sales, KRAFTON’s strong Q4 2022 YoY performance can also be attributed to the release of The Callisto Protocol in December 2022.
Annual sales for PUBG: MOBILE reached 1.252 trillion KRW ($993.5 billion USD), which helped defend its top spot among mobile battle royale games by attracting more paying users through new mode updates, new small maps and more collaborations. Despite a 12% YoY decrease in PUBG: MOBILE sales, KRAFTON has further solidified its position as a global gaming company with 94% of its total annual sales coming from outside South Korea.
LOOKING FORWARD
In addition to 2022 Earnings, KRAFTON also highlighted its ongoing commitment to driving sustainable growth and strengthening its publishing capabilities globally. During an internal January presentation, KRAFTON CEO CH Kim outlined plans to meet the goal of strengthening publishing capabilities by nurturing a robust and compelling pipeline of new games. In 2023, the company will improve the processes that guide how it works with and manages its independent studios, which includes its newly created AAA developer, KRAFTON Montréal Studio, which will oversee the development of a new game based on the Korean fantasy novel series, The Bird That Drinks Tears. Industry veteran Patrik Méthé (Far Cry series, Rainbow Six series) recently joined KRAFTON to lead the studio and project. In addition, KRAFTON discussed a number of major games in its current development pipeline, including Project BlackBudget, Project GoldRush and the next game in the Subnautica series.
KRAFTON also re-emphasized its plans to invest in deep learning as it is currently engaged in a number of projects to discover new gameplay experiences based on the technology. Among these projects is an early version of Virtual Game Friend, which will be showcased in 2023. KRAFTON is also preparing a mobile-oriented open-world virtual platform service with a test planned for the first half of 2023 and an official launch targeted within the year. This virtual platform service will see KRAFTON activate a create-to-earn (C2E) ecosystem that connects creators and brands.
BREAKDOWN OF 2022 PERFORMANCE RELATIVE TO PREVIOUS PERIODS
| Earnings (2022) |
Earnings (2021) |
Variance (YoY) |
|
| Sales | 1.854T KRW | 1.885T KRW | -1.7% |
| Operating Profit | 751.6B KRW | 650.6B KRW | +15.5% |
| Earnings (Q4 2022) |
Earnings (Q3 2022) |
Variance (QoQ) |
Earnings (Q4 2021) |
Variance (YoY) |
|
| Sales | 473.8B KRW | 433.7B KRW | +9.2% | 443.5B KRW | +6.8% |
| Operating Profit | 126.2B KRW | 144.6B KRW | -12.8% | 452B KRW | +178.8% |
▲Table: KRAFTON’s Q4 2022 (preliminary) earnings on a consolidated basis.
For the latest information on KRAFTON, please visit www.krafton.com/en/.
Based out of South Korea, KRAFTON, Inc. is a collective of independent game development studios bound by a passion for creating innovative and engaging entertainment experiences for gamers worldwide. Founded in 2007, KRAFTON consists of PUBG STUDIOS, Bluehole Studio, RisingWings, Striking Distance Studios, Dreamotion, Unknown Worlds, 5minlab and KRAFTON Montréal Studio, each with its own unique expertise.
KRAFTON is responsible for premier entertainment properties, including PUBG: BATTLEGROUNDS, The Callisto Protocol, NEW STATE MOBILE, Moonbreaker, TERA and ELYON. With a team of 3,000 members across nine countries, KRAFTON is a technology-driven company that boasts world-class capabilities as it seeks to expand its areas of business beyond games to multimedia entertainment and deep learning. For more information, visit www.krafton.com