Krafton has joined the 3 trillion won revenue club for the first time since its founding. The company plans to sustain growth this year by securing additional flagship intellectual property (IP) to follow "PUBG: Battlegrounds."
Krafton announced on February 9 that it achieved consolidated revenue of 3.3266 trillion won and operating profit of 1.0544 trillion won last year. Revenue increased 22.8% year-over-year, setting a record high since the company's founding. Annual operating profit declined 10.8% as fourth-quarter operating profit reached only 2.4 billion won due to one-time expenses. Net profit fell 43.7% year-over-year to 733.7 billion won due to foreign exchange losses from currency depreciation and increased impairment losses on financial and intangible assets.
Annual revenue by business segment was as follows: PC at 1.1846 trillion won, mobile at 1.7407 trillion won, console at 42.8 billion won, and others at 358.5 billion won. On the PC platform, flagship IP Battlegrounds grew 16% from the previous year, driving record annual revenue. Analysts attribute this to successful strategies including major collaborations with global artists and luxury brands, as well as various themed modes that resonated with users.
Most notably, the November collaboration with luxury automobile brand Porsche recorded the highest performance among all Battlegrounds supercar partnerships. Additionally, new title "Mimesis," released in October following "inZOI" in March, contributed to revenue growth by selling over 1 million copies.
In the mobile segment, Battlegrounds Mobile grew by continuously expanding its core fanbase through new themed modes and "World of Wonder" user-generated content updates. "Battlegrounds Mobile India (BGMI)" also maintained stable growth through India-exclusive skins and customized premium items, as well as strategic collaborations with prominent local brands. Paying users for Battlegrounds Mobile and BGMI increased 5% and 27% respectively compared to 2024. Other revenue surged 963% year-over-year, reflecting consolidated results from ADK Group and Neptune.
Krafton presented a blueprint for leading franchise IP expansion with long product life cycles (PLC) and AI-based future innovation, building on its core gaming business. The PUBG IP franchise plans to continue double-digit growth based on solid traffic and strong live service capabilities. On PC and console, the company aims to provide cultural experiences beyond gaming through collaborations with world-renowned IPs and create synergies by sharing content within the IP franchise. Additionally, the company will pursue Unreal Engine 5 upgrades, new mode expansion, and UGC updates.
Genre and platform diversification spanning generations and regions will continue through new titles based on Battlegrounds IP. Key IPs include extraction shooter "Black Budget," top-down tactical shooter "PUBG: Blindspot," and battle royale console game "Valor."
The company will execute a mid-to-long-term strategy centered on "major franchise IPs." "inZOI," "Last Epoch," and "Mimesis" aim to become representative IPs in their respective genres through enhanced game quality, advanced live services, and diversified content.
Furthermore, to secure new "major franchise IPs," the company decided to pursue large-scale M&A opportunities capable of generating immediate financial results. Alongside this, the company will pursue small and mid-sized M&A to acquire high-growth-potential IPs and increase their value, as well as strategic equity investments in projects nearing launch and teams with proven development capabilities, combined with second-party publishing (2PP). For in-house production, the company recruited exceptional production leadership last year and launched 15 new projects centered on elite teams, with plans to further expand its production pipeline.
Additionally, the company will prioritize "AI for Game" initiatives focused on providing new play experiences using in-game artificial intelligence and innovating production and live services. In the mid-to-long term, the company plans to gradually explore expansion possibilities in "Game for AI" areas such as physical AI, building on accumulated capabilities and technology. Simultaneously, the company will maximize IP PLC through linkages between games and animation with ADK, while improving marketing efficiency in the Japanese market. Neptune plans to expand its influence in the Indian market based on advertising technology and develop India-specific advertising businesses leveraging traffic from core games including BGMI.
The company also finalized its largest shareholder return policy since founding. According to the policy approved by the board on this day, Krafton will implement total shareholder returns exceeding 1 trillion won over three years starting this year. This represents an increase of more than 44% compared to the previous three-year shareholder return total of 693 billion won implemented from 2023 to 2025.
Through the new policy, Krafton will introduce cash dividends for the first time since its founding, totaling 300 billion won over three years at 100 billion won annually. This cash dividend will be conducted as a capital reduction dividend, which carries no tax burden for minority shareholders. The company plans to acquire more than 700 billion won in treasury shares and cancel all of them. The company is also leaving open the possibility of expanding the return scale depending on market conditions and financial circumstances.
Kim Chang-han, CEO of Krafton, said, "This shareholder return policy reflects Krafton's strong commitment to enhancing shareholder value." He added, "We will continue to pursue differentiated game development and strategic investments on the global stage, while enhancing sustainable corporate value by combining shareholder returns based on our cash holdings and stable cash generation capabilities."