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Krafton (Photo courtesy of Krafton) |
[Alpha Biz= Kim Jisun] Krafton delivered record quarterly earnings for the first quarter of 2026, driven by strong performance of its flagship PUBG: Battlegrounds IP across PC and mobile platforms, along with contributions from its advertising affiliate ADK.
Krafton reported consolidated revenue of KRW 1.37 trillion and operating profit of KRW 561.6 billion, up 56.9% and 22.8% year-on-year, respectively. Both figures mark all-time quarterly highs, with Q1 operating profit alone accounting for 53% of its full-year 2025 total.
By segment, revenue totaled KRW 363.9 billion from PC, KRW 702.7 billion from mobile, KRW 13.8 billion from console, and KRW 291.0 billion from other businesses. The PUBG franchise remained the core growth driver, with revenue surpassing KRW 1 trillion for the quarter, up 24% year-on-year.
On PC, a 9th anniversary collaboration with Aston Martin boosted engagement and revenue, demonstrating the long-term monetization potential of premium collaborations. On mobile, partnerships with brands such as Apollo Automobil drove spending among high-value users, while growth in India was supported by Battlegrounds Mobile India, where paying users rose 17% year-on-year.
Krafton is expanding PUBG beyond a single battle royale title into a broader platform-based franchise. New modes such as “Zenopoint” launched in April, with additional content, including a collaboration with the Payday IP, planned for May. The company is also increasing user-generated content (UGC) and targeting emerging markets.
The company is advancing its pipeline of new titles and AI-driven initiatives. Life simulation game “InZOI” is entering a scale-up phase aimed at long-term IP development, with plans for console expansion, AI-powered modding tools, and multiplayer features. Meanwhile, Subnautica 2 is preparing for early access release, introducing co-op gameplay for the first time in the series.
Krafton is also integrating AI directly into gameplay. Its multimodal AI models, branded “Raon,” are being fine-tuned for game-specific applications, while “PUBG Ally,” based on Co-Playable Character (CPC) technology, is set for beta release in 2026.
The company is enhancing shareholder returns as well, completing KRW 200 billion in share buybacks and KRW 99.6 billion in dividends in Q1, along with KRW 336.2 billion in share cancellations. An additional KRW 100 billion buyback and full cancellation are planned for Q2.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
