Krafton, Inc. · KRX:259960
Krafton — Q3 2022 Earnings Presentation
16 slides from Krafton's earnings presentation, Nov 10, 2022
Slide 1: 3Q22 Earnings Results
3Q22 Earnings Results Investor Relations 2022. 11. 10
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: 2022 3Q Results at a Glance
2022 3Q Results at a Glance Key performance Strategic Focus by 50%+↑QoQ 50%+↑QoQ Platforms, Service, Regions PC In-game Revenue Console In-game ARPU Key financial Highlights + 6 % QoQ 39 % + 17 % QoQ PUBG(1) Revenue Adj. EBITDA Margin(2) Net Profit Note: (1) PUBG PC, Console, Mobile, Battlegrounds M
Slide 4: PC: Solidifying the Long-Term Service Track with Steady Traffic
PC Solidifying the Long-Term Service Track with Steady Traffic and Enhanced Content BMs following F2P Transition • (Revenue +48% QoQ, +1% YoY) Record-high quarterly revenue in 3 years driven by strong results from monetization content including the Seasonal Workshop Steady Traffic and Retention afte
Slide 5: Mobile
Mobile One of a Kind Live Service including Content Updates better suited for Mobile Gaming and Diversified User Base • (Revenue -12% QoQ, -26% YoY) Impacted by the end of pandemic and BGMI ban, but our dominance in the genre continues with steady traffic and stronger monetization Differentiated Con
Slide 6: Console
Console With our Highly Talented Teams and Console Experience, Dual Focus Approach on PC/Console as New Growth Momentum • (Revenue +22% QoQ, +134% YoY) Subnautica IP’s stable revenue and higher key metrics in PUBG Console following DESTON release led to QoQ/YoY jump 〮 2014 Early Access 〮 2018 Offici
Slide 7: The Callisto Protocol Global Previews and Launch
Global Hands-on Previews Overwhelmingly Positive, A True Next-Gen Title Full-Scale Global Marketing Campaign to Propel the Launch Momentum Long-Awaited Debut on Dec 2, 2022 (PS/Xbox/Steam/Epic Store) “Horror fans won’t want to miss this” “A Firm GOTY Contender” The Independent The Gamer “The C
Slide 8: Our Path to Create Global IP
Our Path to Create Global IP Expanding our presence in North America & Europe, Platforms + Regional Dev Capabilities + Faster IP Expansion 6 Years PC and Console Live Service 8 Studios Number of Global Studios(3) 7+ Pipeline Projects(4) PC/Console Platform Expansion Regional and IP Expansion Genre a
Slide 9: 3Q22 Financials
3Q22 Financials Revenue KRW 433.8bn (-16.9% YoY, +2.4% QoQ) Record-High PC revenue since 2019 with strengthened live service and monetization offset the drop in mobile revenue due to the end of pandemic Operating Profit KRW 140.3bn (-28.2% YoY, -13.6% QoQ) Despite steady revenue, operating profit de
Slide 10: Expense Breakdown
Expense Breakdown Operating Costs KRW 293.5bn (-10.2% YoY, +12.3% QoQ) • (Personnel) 102.1bn (+26.3% YoY, +5.4% QoQ) • YoY and QoQ increased due to higher headcount from ongoing business expansion • (Paid Commissions) 85.5bn (+22.1% YoY, +4.7% QoQ) • YoY and QoQ increased due to the associated expen
Slide 11: Operating Profit / Adj. EBITDA
Operating Profit / Adj. EBITDA Operating Profit KRW 140.3bn (-28.2% YoY, -13.6% QoQ) Adj. EBITDA KRW 170.9bn (-39.7% YoY, -2.1% QoQ) • Adj. EBITDA decreased 2.1% QoQ, with adj. EBITDA margin of 39.4% Operating Profit Adj. EBITDA(2) KRW bn KRW bn 60% 54% 53% 41% 39% 37% 38% 32% 278.1 27% 23% (53.2) 1
Slide 12: Net Profit
Net Profit Profit Before Income Tax KRW 309.4bn (+14.6% YoY, +20.5% QoQ) Net Profit KRW 226.4bn (+27.0% YoY, +16.7% QoQ) • Net profit expanded on back of stronger Non-operating profit due to favorable F/X base, with net profit margin of 52% Non-operating Profit & Profit Before Income Tax Net Profit
Slide 13: Summary of Financial Statements
Summary of Financial Statements Consolidated Income Statement Consolidated Statement of Financial Position KRW bn 3Q21 4Q21 1Q22 2Q22 3Q22 KRW bn 3Q21 4Q21 1Q22 2Q22 3Q22 Revenue 521.9 444.0 523.0 423.7 433.8 Current Assets 4,441.2 3,653.7 3,715.7 3,811.0 3,979.2 Cash and Cash Operating Costs 326.6
Slide 14: Q&A
Q&A
Slide 15: 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
Slide 16: The Callisto Protocol
aay FEAR TAKES NO PRISONERS THE GCAVTISTO PROTOCOL