Krafton, Inc. · KRX:259960
Krafton — Q3 2023 Earnings Presentation
14 slides from Krafton's earnings presentation, Nov 7, 2023
Slide 1: 3Q 2023 Earnings Results
3Q 2023 Earnings Results Investor Relations 2023. 11. 7
Slide 2: Disclaimer
Disclaimer Financial statements included in this document are consolidated results of KRAFTON, Inc. (the “Company”) and its subsidiaries and have been prepared in accordance with K-IFRS. Financial results and operational performance included herein have been prepared for investors’ convenience only
Slide 3: 2023 3Q Results at a Glance
2023 3Q Results at a Glance Key performance PUBG PC BGMI MAU Revenue up to 3Q23 / FY2022 Compared to Pre-Ban Period Game Studio Investments 98% 19%↑ FY2023 13 (1) (2) (3) Since IPO 21 (4) Key financial Highlights 450.3 bn KRW 189.3 bn KRW 211.6 bn KRW Revenue Operating Profit Net Profit Note: (1) Cu
Slide 4: PUBG PC/Console Continues to Grow following F2P Transition
PC / Console PUBG PC/Console Continues to Grow following F2P Transition, with Stable Live Service and New Game Experience Live Service Updates by Communications with Users Strong Traffic and Revenue for 4Q with New Map and Skins Erangel Map Update New Weapon Dragunov New 8x8km Map “Rondo” New PvE Ar
Slide 5: Mobile: Stable Traffic and Revenue, Successful Resumption of BGMI
Mobile Stable Traffic and Revenue from Growth in New Regions and Enhanced Monetization, Successful Resumption of BGMI Global IP Collaborations and Premium Skins Themed Modes and India Marketing Campaign for 4Q Dragonball IP Collaboration Mode Premium X-Suit Skins Local Content for India Enhanced Fea
Slide 6: New Games for FY2024 - Dark and Darker Mobile
New Games for FY2024 - Dark and Darker Mobile Genre and Launch Schedule Mobile Extraction RPG developed by Bluehole Studio Global Launch Targeting 1H24 Gameplay Features Combination of Medieval Fantasy RPG, Battle Royale, Dungeon Crawler Explore Dungeons, Combat Monsters and Other Players to
Slide 7: New Games for FY2024 - Project inZOI
New Games for FY2024 - Project inZOI Genre and Launch Schedule Life Simulation Game developed by KRAFTON Global Launch Targeting 2H24 Gameplay Features Experiencing the Life Players have Dreamed of Realistic and Immersive Gameplay based on UE5 Players Feeling the Emotions of Life in their
Slide 8: Scale-Up the Creative
Scale-Up the Creative Scale-Up the Future Growth Potential with Transition from a Global Game Company into a Global Publisher Major Pipeline Titles Discovering New Creatives Total Games to be Launched(2) Project Black Budget • Dark and Darker Mobile (2024) • Project inZOI (2024) 32+ • Project Black
Slide 9: 3Q23 Financials
3Q23 Financials Revenue KRW 450.3bn (QoQ +16.3%, YoY +3.8%) Revenue increased due to BGMI Service Resumption and PUBG Mobile Growth Operating Profit KRW 189.3bn (QoQ +44.0%, YoY +30.9%) Growth in Operating Profit Driven by Mobile Revenue Expansion and Sustaining Efficient Cost Management Net Profit
Slide 10: Expense Breakdown
Expense Breakdown Operating Costs KRW 261.0bn (QoQ +2.1%, YoY -9.7%) • (Personnel) 3Q23 QoQ -0.9%, YoY +3.5% Increased YoY due to increase in Headcount • (Paid Commissions) 3Q23 QoQ -8.1%, YoY -23.9% • Decreased QoQ and YoY Due to decrease in Outsourcing Costs Following Completion of TCP Development
Slide 11: Operating Profit / Adj. EBITDA
Operating Profit / Adj. EBITDA Operating Profit KRW 189.3bn (QoQ +44.0%, YoY +30.9%) Adj. EBITDA KRW 197.3bn (QoQ +17.6%, YoY +13.1%) • 3Q23 Adj. EBITDA increased 13% YoY, with Adj. EBITDA Margin of 44% Operating Profit Adj. EBIDTA(1) KRW bn KRW bn 53% 59% 42% 44% 43% 40% 33% 34% 34% 27% 319.0 10.0
Slide 12: Net Profit
Net Profit Profit Before Tax KRW 280.4bn (QoQ +75.8%, YoY -10.6%) Net Profit KRW 211.6bn (QoQ +64.6%, YoY -6.6%) • 3Q23 Net Profit increased QoQ due to FX effects impacting Non-operating Profit Non-operating Profit & Profit Before Tax Net Profit KRW bn KRW bn 구분 3Q22 4Q22 1Q23 2Q23 3Q23 52% 50% 47%
Slide 13: Summary of Financial Statements
Summary of Financial Statements Consolidated Income Statement Consolidated Statement of Financial Position KRW bn 3Q22 4Q22 1Q23 2Q23 3Q23 (KRW bn) 3Q22 4Q22 1Q23 2Q23 3Q23 Revenue 433.7 473.8 538.7 387.1 450.3 Current Assets 3,979.2 3,892.6 4,075.3 4,006.8 4,192.3 Cash and Cash Operating Costs 289.
Slide 14: Our Vision
Our Vision WH y We believe games will become the world’s most powerful medium. H 0 W Based on our creativity, steadfast dedication toward new challenges and technological development, WH AT We will further expand our original IPs and build immersive, virtual worlds, where our fans play together and