1. Krafton Q2 Earnings: What Matters Most?

The market’s assessment of Krafton will heavily depend on whether the company can recover from its disappointing Q1 performance. Key indicators will be the stabilization of PUBG’s free-to-play model, the impact of new content, and the performance of Injoyi following its early access release. Investors should focus on whether the factors that contributed to the Q1 revenue decline have been addressed.

2. Why Did Q1 Earnings Disappoint?

Krafton struggled to establish a stable revenue model for PUBG after its transition to free-to-play in Q1 2025. The delayed launch of Injoyi further hampered revenue growth, resulting in a year-over-year decline.

3. Krafton’s Future Strategy

Krafton will unveil its future growth strategy alongside its Q2 earnings announcement on August 26th. Key areas of focus are expected to be new IP strategies including Injoyi, AI technology integration, and global market expansion. Of particular interest will be Krafton’s plans to navigate the potential global economic downturn and increasing competition in the gaming market. Investors should also pay attention to the company’s strategy for dealing with evolving global gaming regulations, especially in the Indian market.

4. Action Plan for Investors

  • Carefully review the IR presentation, focusing on Injoyi’s performance, the specifics of the future growth strategy, and the company’s response to macroeconomic and competitive pressures.
  • Look for concrete explanations regarding the management of high debt levels and the strategy for navigating a potential global recession.
  • Minimize investment risk by conducting additional market research and seeking expert analysis.