Krafton, Inc. · KRX:259960
Krafton — Q1 2024 Earnings Presentation
17 slides from Krafton's earnings presentation, May 8, 2024
Slide 1: Investor Presentation
Investor Presentation 2024. 5. 8
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: 1Q24 Results at a Glance
A new record high quarterly revenue driven by Revenue 1Q24 Revenue KRW 665.9 bn growth of PUBG PC, Mobile, and Console 1Q24 Operating Operating profit rose 89% QoQ and 10% YoY bolstered Results at a Glance profit KRW 310.5 bn by solid revenue growth and stable cost expenses 1Q24 Operating Profit Dis
Slide 4: Strengthen Presence as a Global IP Contributed by Healthy Traffic of PUBG PC and Mobile
PUBG IP Franchise Strengthen Presence as a Global IP Contributed by Healthy Traffic of PUBG PC and Mobile User Engagement Rondo Features, 7th Anniversary Updates 6th Anniversary Theme Mode, Home System Indian Holiday Content, Bollywood Marketing Profitability Progressive Weapon Skin Seasonal Event B
Slide 5: Dark and Darker Mobile: Preparing Global Launch through Tests in Korea
Dark and Darker Mobile Preparing Global Launch through Tests in Korea followed by Expanded Marketing 2Q24 3Q24 4Q24 CBT in Korea to test build stability OBT in Korea to enhance build quality Targeted marketing for key regions Focus Group Interview for global regions In-game currency and mo
Slide 6: Accelerating Equity Investments and 2nd Party Publishing
Equity Investment & 2PP Accelerating Equity Investments and 2nd Party Publishing for More and Faster Attempts Major Investments in 1Q24 2024 2H A New Studio Founded by Industry Veterans 10 9 Developing a Survival PvP Experience, ‘Project Coltrane’ 7 Securing Leaderships in 2 Multiplayer Shooter High
Slide 7: Aiming India's #1 Publisher through Game Publishing and Investments
India Aiming India’s #1 Publisher through Game Publishing and Investments Game Publishing Investments and Strategic Partnerships Indian Game Ecosystem Bullet Echo India • Top-down BR Shooter Pre-registration (’24. 3. 26) Game • Launch (’24. 4. 15) Development • CookieRun KRAFTON INDIA Indian Digital
Slide 8: Focusing on Game Development Efficiency and Discovering New Gameplay through AI
AI Focusing on Game Development Efficiency and Discovering New Gameplay through AI Increasing Efficiency in Development Discovering New Gameplay Traditional Method KRAFTON Spin-off of Special Project 2 (’23. 6) Game design by developers Bots for QA and game design Krafton Reinforced Small &
Slide 9: Laying a Foundation for Sustainable Growth by Ensuring Sustainability in Management Practices
Establishing ESG Committee Laying a Foundation for Sustainable Growth by Ensuring Sustainability in Management Practices BOD • Chairman: BG Chang • 5 Outside Directors, 2 Inside Directors To Oversee and Manage Strategies, Ensuring Sustainable Management Practices in the Areas of ESG to Enhance Share
Slide 10: 1Q24 Financial Performance
1Q24 Financial Performance 10
Slide 11: 1Q Earnings Summary
1Q Earnings Summary Revenue KRW 665.9bn (Unit: KRW bn) 1Q 2023 4Q 2023 1Q 2024 QoQ YoY Revenue 538.7 534.6 665.9 24.6% 23.6% A quarterly record high revenue on the back of strong PUBG IP presence, rose 24.6% QoQ and 23.6% YoY PC 178.5 167.1 243.7 45.8% 36.5% Operating Profit KRW 310.5bn Mobile 348.2
Slide 12: Revenue Breakdown
Revenue Breakdown Revenue (Unit: KRW bn) 1Q 2023 4Q 2023 1Q 2024 QoQ YoY Revenue 538.7 534.6 665.9 24.6% 23.6% PC 1Q24 KRW 243.7bn (45.8% ↑ QoQ, 36.5% ↑ YoY) PC 178.5 167.1 243.7 45.8% 36.5% Mobile 1Q24 KRW 402.3bn (17.4% ↑ QoQ, 15.5% ↑ YoY) Mobile 348.2 342.7 402.3 17.4% 15.5% Console 7.2 17.4 11.5
Slide 13: Operating Expenses & Profit
Operating Expenses & Profit Operating Expenses (Unit: KRW bn) 1Q 2023 4Q 2023 1Q 2024 QoQ YoY Operating Expenses 255.7 370.2 355.4 -4.0% 39.0% 1Q24 KRW 355.4bn (4.0% ↓ QoQ, 39.0% ↑ YoY) Personnel 100.8 120.9 121.4 0.4% 20.4% Declined 4.0% QoQ on the back of stabilized cost trend, Platform fees / Cos
Slide 14: Net Profit
Net Profit Net Profit (Unit: KRW bn) 1Q 2023 4Q 2023 1Q 2024 QoQ YoY Non-Operating Profit 79.4 (138.1) 154.8 T/P1) 94.9% 1Q24 KRW 348.6bn (T/P1) QoQ, 30.5% ↑ YoY) Non-Operating Income 141.8 190.6 189.6 -0.5% 33.7% Turned to profit QoQ impacted by low based from impairment of Other Income 132.0 182.8
Slide 15: Q&A
Q&A
Slide 16: Summary of Financial Statements
Summary of Financial Statements Consolidated Income Statement Consolidated Statement of Financial Position 2023 2024 (KRW bn) FY2023 1Q 2024 (KRW bn) 1Q 2Q 3Q 4Q 1Q Assets Current Assets 3,964.4 4,330.8 Revenue 538.7 387.1 450.3 534.6 665.9 Cash and Cash Equivalents1) 3,061.4 3,365.3 Operating Costs
Slide 17: Our Vision
Our Vision WHY HOW WHAT We believe games will become the world’s most powerful medium. Based on our creativity, steadfast dedication toward new challenges and technological development, We will further expand our original IPs and build immersive, virtual worlds, where our fans play together and shar