Krafton (259960)

Krafton is a global game company primarily engaged in the development and service of PC, mobile, and console games. Its core product is the 'PUBG: Battlegrounds' IP (intellectual property), which has achieved significant global success. The company also services various other games, including 'NEW STATE MOBILE', the recently launched and successful 'Subnautica 2', and 'InZoi'. As of Q1 2026, international revenue accounts for 95.9% of total revenue, with particularly notable growth from 'Battlegrounds Mobile India (BGMI)' in the Indian market. Furthermore, in Q1 2026, advertising and content revenue resulting from the acquisition of ADK Holdings constituted 20.5% of total revenue, diversifying its business portfolio. Krafton is solidifying its position as the top-ranked listed game company in Korea by market capitalization, establishing a strong foothold in the global market based on its robust cash-generating capability. Krafton's core competencies are the unparalleled global influence of the 'PUBG: Battlegrounds' IP and its long-term service capabilities. Additionally, the company actively invests in AI technology development, possessing outstanding research capabilities, to the extent that it has been selected among the 'TOP4' Korean companies in AI competitiveness. Through this, it is driving innovation in gaming experiences, including the development of in-game AI bots, strengthening anti-cheat systems, and expanding into physical AI domains. Based on abundant cash flow and a stable financial structure, the company is pursuing continuous growth through aggressive investments and M&A to secure 'Big Franchise IPs'. Krafton has shown robust revenue growth in recent years. Revenue in 2023 was KRW 1.9106 trillion, an increase of 3.05% year-over-year, and in 2024, it recorded KRW 2.7098 trillion, a high growth rate of 41.83%. Revenue in 2025 increased by 22.76% year-over-year to KRW 3.3266 trillion, setting a new all-time high. Operating income margin maintained high profitability at 40.54% in 2022, 40.20% in 2023, and 43.64% in 2024, but slightly declined to 31.69% in 2025. Looking at quarterly performance in 2025, the company experienced unusual fluctuations in Q2 with revenue of KRW -212.1 billion and operating income of KRW -211.2 billion. However, Q4 recorded revenue of KRW 2.4559 trillion and operating income of KRW 705.8 billion, driving the annual performance. Krafton's financial soundness is excellent. The debt-to-equity ratio remained low, from 17.94% in 2022 to 15.97% in 2024, and continued to be very low at 31.31% in 2025, demonstrating a stable financial structure. The current ratio has been on a declining trend from 946.68% in 2022 to 307.36% in 2025, but it remains at a very high level, exceeding 300%, ensuring excellent liquidity. ROE (Return on Equity) was 9.78% in 2022 and 10.69% in 2023, significantly improved to 19.07% in 2024, and maintained sound profitability at 10.21% in 2025. Krafton is accelerating IP diversification through the long-term growth of the 'PUBG: Battlegrounds' IP and the successful launch of new titles such as 'Subnautica 2'. Furthermore, the company is pursuing a strategy to lead innovation in the gaming industry and secure new growth engines through advanced AI technology and expansion into physical AI domains. It is also seeking to evolve into a comprehensive entertainment platform company by further strengthening its presence in global markets, especially in emerging markets like India.