South Korean gaming giant Krafton, publisher of PlayerUnknown’s Battlegrounds (PUBG), had a banner year in 2023.
The company brought in revenue at an all-time high of $1.4 billion, more than doubling its intake since 2020.
This was driven by tremendous growth in PC and console revenue as well as continued dominance in the mobile sector.
Highlight:
- PUBG Mobile was the primary driver of Krafton’s record-breaking revenue in 2023, bringing in $939 million or 66% of total revenue.
- The mobile version continues to dominate, even as Krafton grows the player base across platforms.
- Revenue from PUBG Mobile dipped slightly (0.6%) year-on-year, but Q4 2023 saw a turnaround with a 34.5% increase.
- Krafton plans to build on PUBG Mobile’s popularity by enhancing the experience through AI and releasing a battle royale RPG spin-off title Darker and Darker Mobile.
Mobile Leads the Charge
Mobile gaming remained Krafton’s biggest earner in 2023, bringing in a massive $939 million and making up 66% of total revenue.
This did represent a slight 0.6% decrease in mobile earnings year-over-year.
However, Krafton saw a 34.5% surge in mobile revenue in Q4 2023, signaling the platform is still going strong.
PC gaming was the second largest revenue stream at $439 million, up 25.6% from 2022.
Console trailed far behind, earning just $41.9 million as earnings plummeted 46.5% from the previous year.
- Mobile – $939M – 0.6% Drop
- PC – $439M – 34.5% Jump
- Console – $42M – 46.5% Drop
Soaring Profits Across the Board
Thanks to its diversified gaming portfolio, Krafton achieved record profits in 2023.
Operating profit grew 30.3% year-over-year to $123 million in Q4.
For the full year, operating profit hit $577 million.
Net profit for 2023 reached $446 million, a 19% increase from 2022.
Krafton also posted robust adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $679 million.
How Did Krafton Dominate in 2023?
Krafton credited its big year to successfully transitioning more titles to a free-to-play model and “solid growth in traffic and revenue” across platforms.
The company also invested heavily in AI research, releasing the most papers on the subject of any Korean developer and ranking 3rd globally.
Krafton believes AI innovation will drive future growth.
Moving forward, Krafton is prioritizing the development of original IP it can scale into “1B” franchises.
It is also consolidating operations at its South Korean headquarters.
And the return of BGMI (Indian PUBG variant) in the Indian market also adds to the revenue stream.
What’s Next for the PUBG Publisher?
With major new titles like SubNautica 2, Dinkum Mobile, and RPG Darker and Darker Mobile in the pipeline, Krafton is poised to continue its record run in 2024.
The gaming world is taking notice of Krafton’s meteoric rise.
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