KRAFTON, Inc. Announces 2021 Revenue of $1.57 Billion, Highest in Company History

(Photo: forty-seven communications)

KRAFTON, Inc., the South Korean creators of the PUBG: BATTLEGROUNDS battle royale game, today shared the announcement of its preliminary results for 2021. KRAFTON recorded annual revenue of US$1.57 billion according to consolidated financial statements in accordance with Korea Financial Reporting Standard international (K-IFRS). Annual revenue increased 13% year over year, setting a new record for the company. See below for more details on 2021 earnings:

SUMMARY OF DETAILS OF 2021 RESULTS

  • Summary of overall results 2021
  • Annual turnover: 1.57 billion US dollars (+13% compared to 2020)
  • Operating profit: US$534.9 million
  • Net profit: US$434.8 million
  • Operating cost: US$1.04 billion (+US$292.8 million year-over-year)
  • Operating profit margin: 34%
  • Annual foreign sales ratio: 94%
  • Summary of fourth quarter 2021 results
  • Revenue: US$371.3 million (+26% vs. Q4 2020)
  • Operating profit: US$35.9 million
  • Net profit: US$5.1 million
  • Operating cost: USD 335.4 million (+USD 62.2 million QOQ)
  • Operating profit margin: 9.7%

High marketing costs and one-time costs related to equity compensation contributed to the slight increase in operating costs. More than $50.9 million of expenses for the gift of stock to shareholders were taken into account when calculating the 2021 operating profit. Taking this into account, KRAFTON actually earned an operating profit of more than US$585.3 million, the second consecutive year it has achieved this result.

READ ALSO: KRAFTON, INC. will acquire Unknown Worlds, the developers behind Subnautica and Natural Selection

FACTORS CONTRIBUTING TO YEAR-OVER-YEAR GROWTH

KRAFTON’s steady growth has been led by PUBG: BATTLEGROUNDS and PUBG MOBILE. PUBG: BATTLEGROUNDS generated $96.1 million in revenue during the fourth quarter of 2021. For the full year, PUBG: BATTLEGROUNDS reported revenue of US$333.6 million. At the end of 2021, KRAFTON prepared for PUBG: BATTLEGROUNDS‘ January 2022 transition to free play, ensuring a sustainable live service structure. A variety of paid in-game products have been developed, which have increased PUBG: BATTLEGROUNDS‘ Average revenue per user (ARPU) in gaming more than quadrupled compared to 2020. This contributed significantly to the strong year-over-year sales growth.

PUBG MOBILE recorded revenue of $1.18 billion for 2021 and $253.7 million in revenue for the fourth quarter of 2021, making it the top performing mobile game. Increase in sales in PUBG MOBILEthe growth of BATTLEGROUNDS INDIA MOBILE and the release of NEW MOBILE STATE contributed to the increase in sales in 2021.

NEW GAMES AND EXPANDED ACTIVITIES IN 2022

With KRAFTON’s earnings announcement, the company has focused on building its gaming-related capabilities and accelerating new business opportunities in 2022. The company aims to further strengthen its competitive edge by increasing its gaming capabilities. publishing games and streamlining gaming operations while targeting gamers with new titles. .

A new game, codenamed “Project M”, by Unknown Worlds (the creators of the Subnautical series that KRAFTON acquired in 2021) is expected to premiere in 2022. “Project M” is a very unique turn-based strategy game set in a sci-fi world. The Callisto Protocolan original survival horror game developed by Striking Distance Studios, is also set to launch in 2022. Additionally, new mobile titles including Road to Valor: Empires from Dreammotion and defense derby from RisingWings, are waiting to be launched.

KRAFTON also plans to introduce a new production program called “The Potential” and actively engage in new activities such as deep learning, Web 3.0, NFT, virtual reality and others. Specific to deep learning, KRAFTON is developing an audio-based user-generated content (UGC) platform using text-based voice AI. The company will also build a high-quality metaverse with a content creation tool that leverages Unreal Engine. KRAFTON has also entered into a memorandum of understanding with NAVER Z and ZEPETO to develop a new Web 3.0 and non-fungible token (NFT) project aimed at building an NFT metaverse platform. Through partnerships like these, KRAFTON aims to reinvigorate the NFT-based creator economy while also focusing on the development of technologies that can contribute to the creation of a Create to Earn (C2E) ecosystem by collaborating with strong partners.

DETAILED BREAKDOWN OF 2021 PERFORMANCE COMPARED TO PREVIOUS PERIODS







Annual earnings

(2021)

Annual earnings

(2020)

Variance

(Annual %)

Income

18,863

16,704

+13%

Operating result

6,396

7,739

-17.3%

net profit

5,199

5,563

-6.5%

▲Table: Operating performance (provisional) of KRAFTON in 2021 according to the consolidated financial statements (Unit: 100 million South Korean won)







Actual performance

(Q4 2021)

Actual performance

(Q4 2020)

Variance

(Annual %)

Actual performance

(Q3 2021)

Variance

(T/T%)

Income

4,440

3,526

+25.9%

5,219

-14.9%

Operating result

430

926

-53.6%

1,953

-78.0%

net profit

62

413

-84.9%

1,783

-96.5%

▲Table: Operating performance (provisional) of KRAFTON in Q4 2021 according to consolidated financial statements (Unit: 100 million South Korean won)

For the latest information on KRAFTON, please visit www.krafton.com. Assets and other press releases can be found in the official KRAFTON Press room.

RELATED: Krafton IPO targets record $5 billion in South Korea

ⓒ 2021 TECHTIMES.com All rights reserved. Do not reproduce without permission.

Comments are closed.