Krafton posted its highest-ever quarterly results on the back of growth in the "Battlegrounds (PUBG)" intellectual property (IP). New mode popularity and rising sales in key overseas markets are seen as driving the performance.
Krafton said on the 30th that it posted preliminary results in the first quarter with 1.3714 trillion won in consolidation sales and 561.6 billion won in operating profit. Sales rose 56.9% and operating profit increased 22.8% from a year earlier. It is the highest quarterly performance on record.
By business institutional sector, sales were 702.7 billion won for mobile, 363.9 billion won for PC, 13.8 billion won for console, and 291.0 billion won for other. PUBG IP sales rose 24% from a year earlier, surpassing 1 trillion won on a quarterly basis.
The growth appears to be the result of a combination of collaborative content, new modes, and regional expansion. On PC, an Aston Martin collaboration event held to mark the ninth anniversary of "Battlegrounds" boosted sales. The content expansion through the new mode "Xeno Point" also helped bring in more users.
Bae Dong-geun, Krafton chief financial officer (CFO), said on the first-quarter earnings conference call, "More than one-third of battle royale users played Xeno Point," and noted, "Despite being a new PvE (player versus environment) mode, it delivered record-level results."
Growth by region also stood out. In the Middle East, premium products tailored to the Ramadan season were well received, driving double-digit sales growth. China benefited from the Lunar New Year season, and India also maintained momentum on the back of expanded marketing.
Still, concerns were raised about high dependence on PUBG. With most sales coming from the PUBG IP, volatility is high depending on content and seasonal events, critics said. In response, Bae said, "PUBG has seasonality and quarter-to-quarter fluctuations, but first-quarter results show structural growth," adding, "Several modes released in April are delivering record performance, so we have a positive view on second-quarter sales."
The development status of the anticipated second-half title "Subnautica 2" was also disclosed. The game is a sequel to "Subnautica" and went through growing pains, including a change in management due to content shortages during development. Krafton CEO Kim Chang-han, addressing concerns about a delayed launch, said, "Development is currently progressing smoothly, and we are targeting an early access release as soon as possible."
Krafton also expressed a commitment to expanding new businesses. Krafton said it will push to establish a joint venture for Autonomous Driving services with SOCAR worth about 150 billion won. Kim said, "SOCAR, with its experience operating vehicles and drivers at scale, can be a powerful platform in Autonomous Driving services," adding, "Through the new entity, we plan to develop Autonomous Driving technology independently and study physical AI based on the data secured through it."
Plans for shareholder returns were also announced. Krafton completed first-quarter dividends of 99.6 billion won and a 200 billion won share buyback, and canceled 336.2 billion won worth of treasury shares, including new purchases and existing holdings. That amounts to about 2.7% of shares outstanding. In the second quarter, the company plans to buy back an additional 100 billion won in treasury shares and cancel all of them. On a first-half basis, shareholder returns total 399.6 billion won, up 23% from 2025.
Bae said, "We plan to consider additional share buybacks after comprehensively reviewing market conditions and the stock price level, and we intend to cancel all acquired shares."