Krafton Inc. Financial Update: Mixed Results Amid Strategic Developments
Krafton Inc., a leading South Korean game development company known for its popular online multiplayer battle royale game “PUBG: BATTLEGROUNDS,” has experienced a mix of financial results and strategic developments in recent weeks. The company, listed on the Korea Exchange Stock Market, has seen its stock price fluctuate, closing at 338,500 KRW on July 24, 2025, down from a 52-week high of 393,000 KRW on May 6, 2025, and above a 52-week low of 260,000 KRW on August 4, 2024. With a market capitalization of 16.16 trillion KRW and a price-to-earnings ratio of 11.78, Krafton continues to be a significant player in the gaming industry.
Financial Performance and Market Reactions
On July 30, 2025, Nomura downgraded Krafton’s stock rating to Neutral, citing concerns over weak mobile revenue. This downgrade reflects broader market apprehensions about the company’s ability to sustain growth in its mobile gaming segment. Despite this, Krafton has reported record revenue for the first half of 2025, driven by the continued success of PUBG: Battlegrounds and other titles like Inzoi. However, the company’s profit fell for the first time in two years, with a 26% drop in operating income to 246 billion KRW, attributed to a seasonal slowdown in PUBG: Battlegrounds.
In its latest quarterly earnings report, Krafton announced an earnings per share (EPS) of 320.74 KRW, a significant decrease from 7,496 KRW per share in the same quarter the previous year. The company reported a total revenue of 662 billion KRW for the quarter, indicating robust sales despite the profit decline.
Strategic Initiatives and Future Outlook
Looking ahead, Krafton has set an ambitious target of achieving 7 trillion KRW in revenue by 2029. This goal underscores the company’s commitment to expanding its portfolio and exploring new growth avenues. In line with this strategy, Krafton has collaborated with SK Telecom to debut open-source AI models for math and code, showcasing its investment in cutting-edge technology to enhance game development and player experiences.
Additionally, Krafton has released a new batch of redeem codes for Battlegrounds Mobile India (BGMI), offering players access to in-game rewards. This initiative is part of the company’s efforts to maintain engagement and drive user growth in key markets.
Industry Context
The gaming industry continues to evolve, with competitors like Activision announcing new releases such as Call of Duty Black Ops 6 and Warzone Season 5, set to launch on August 7, 2025. These developments highlight the competitive landscape in which Krafton operates, emphasizing the need for continuous innovation and strategic partnerships.
In summary, while Krafton faces challenges in its mobile revenue and profitability, its strategic initiatives and strong market presence position it well for future growth. The company’s focus on leveraging AI technology and expanding its game portfolio will be crucial in achieving its long-term revenue targets.