Krafton Inc
KRX:259960
Krafton Inc
Krafton Inc., a South Korean titan in the gaming industry, has risen to prominence largely on the back of its colossal hit, "PlayerUnknown’s Battlegrounds" (PUBG). This battle royale game transformed the landscape of online gaming by introducing a gripping, last-man-standing format that captivated millions of players around the globe. With this winning formula, Krafton successfully diversified its revenue streams beyond initial game sales to include in-game purchases, cosmetic upgrades, and seasonal battle passes, all of which keep players engaged and spending. This model, supported by recurring revenue, offers insights into the company’s strategic mastery at driving user engagement and monetization.
Despite the monumental success of PUBG, Krafton Inc. has not rested on its laurels. Recognizing the mercurial nature of the gaming market, the company has embarked on an ambitious journey to broaden its portfolio and future-proof its business against market volatility. To this end, Krafton is investing heavily in new technologies and content, exploring avenues such as narrative-driven games, and showcasing its prowess in developing immersive virtual worlds. By leveraging its expertise in crafting engaging experiences and tapping into emerging trends like artificial intelligence and extended reality, Krafton aims to sustain its growth and secure its place as a mainstay in the highly competitive gaming industry. Through these strategic and innovative endeavors, Krafton continues to craft its story of resilience and adaptability, remaining a formidable player on the global gaming stage.
Krafton Inc., a South Korean titan in the gaming industry, has risen to prominence largely on the back of its colossal hit, "PlayerUnknown’s Battlegrounds" (PUBG). This battle royale game transformed the landscape of online gaming by introducing a gripping, last-man-standing format that captivated millions of players around the globe. With this winning formula, Krafton successfully diversified its revenue streams beyond initial game sales to include in-game purchases, cosmetic upgrades, and seasonal battle passes, all of which keep players engaged and spending. This model, supported by recurring revenue, offers insights into the company’s strategic mastery at driving user engagement and monetization.
Despite the monumental success of PUBG, Krafton Inc. has not rested on its laurels. Recognizing the mercurial nature of the gaming market, the company has embarked on an ambitious journey to broaden its portfolio and future-proof its business against market volatility. To this end, Krafton is investing heavily in new technologies and content, exploring avenues such as narrative-driven games, and showcasing its prowess in developing immersive virtual worlds. By leveraging its expertise in crafting engaging experiences and tapping into emerging trends like artificial intelligence and extended reality, Krafton aims to sustain its growth and secure its place as a mainstay in the highly competitive gaming industry. Through these strategic and innovative endeavors, Krafton continues to craft its story of resilience and adaptability, remaining a formidable player on the global gaming stage.
Record Revenue: KRAFTON achieved its highest annual revenue ever in 2025, driven by strong growth of the PUBG IP and new titles.
PUBG Strength: PUBG PC revenue grew 16% and mobile revenue grew 11% year-over-year, with total PUBG franchise revenue up 30% YoY.
User Growth: Average monthly PUBG PC users rose 11% YoY; mobile and BGMI paying users grew 5% and 27% YoY, respectively.
Profit Decline: Operating profit fell 11% YoY due to increased development headcount, higher investment in PUBG 2.0, and one-off costs.
Shareholder Returns: New 2026–2028 policy targets over KRW 1 trillion in returns, including dividends and share buybacks—a 44% increase from the previous plan.
Expense Drivers: Higher costs in Q4 were driven by ADK consolidation, personnel expenses, and one-off charges including litigation.
AI & Franchise Strategy: Management highlighted a disciplined approach to new IP development, AI as a value driver, and plans to expand both gaming and adjacent businesses.
2026 Outlook: Management expects continued double-digit growth for PUBG IP and more new game title launches, with increased marketing and outsourcing expenses anticipated.
