Seoul: Krafton Inc., the South Korean gaming giant renowned for its popular game PUBG: Battlegrounds, announced a significant decrease in its second-quarter net income, which fell by 95.4 percent due to escalating operational expenses. The company reported a net profit of 15.5 billion won (US$11.1 million) for the April-June period, marking a dramatic drop from the same period last year, as revealed in a regulatory filing.
According to Yonhap News Agency, Krafton's operating income saw a decline of 46.2 percent year-on-year to 246 billion won, while sales decreased by 24.3 percent to 662 billion won. The company attributed the sharp decline in net profit to increased operational costs, including higher wages and marketing expenditures.
Despite the quarterly setback, Krafton reported its highest-ever sales for the first half of the year. From January to June, the company achieved sales totaling 1.53 trillion won, representing an 11.9 percent increase year-on-year. Operating profit during this period rose by 9.5 percent to 703.3 billion won.
Breaking down the sales by segment, PC games contributed 543.2 billion won in the first half, while mobile games generated 960 billion won. Console and other business lines accounted for 33 billion won. The company credited the growth in its PC gaming sector to robust live service operations and new content updates for PUBG: Battlegrounds.
Looking forward, Krafton plans to expand its reach by launching new titles and engaging in collaborations with globally recognized intellectual properties. Future initiatives include partnerships with French luxury carmaker Bugatti and K-pop group aespa.