Korea Stock Market Insights

Tag: PUBG

  • Krafton IR Analysis: Decoding the Future Beyond PUBG – Investment Strategies

    Krafton IR Analysis: Decoding the Future Beyond PUBG - Investment Strategies 대표 차트 이미지

    1. Krafton IR: What was discussed?

    On September 3, 2025, Krafton held its IR presentation as part of its conference and Corporate Day participation. The company shared its 2025 first-half performance and future strategies, and addressed investor questions. Key takeaways include:

    • Sluggish Performance: Declining performance of ‘PUBG Mobile’ and weakening PC sales contributed to a significant drop in revenue and operating profit.
    • Future Growth Engines: Krafton aims to secure new growth drivers through the launch of its new IP ‘inZOI’ and investments in AI technology.
    • Business Diversification: The company is expanding beyond gaming into areas like short-form dramas and ad tech.

    2. Why is this important?

    This IR is a crucial indicator of Krafton’s future trajectory. Investors should pay close attention for the following reasons:

    • Overcoming Slowing Growth: Krafton faces the challenge of overcoming slowing growth. The IR needs to present concrete strategies to address this issue.
    • New IP Success: The market has mixed expectations regarding the success of ‘inZOI’. The IR needs to provide concrete information and a clear vision for ‘inZOI’ to gain investor confidence.
    • Leveraging AI: Krafton is actively investing in AI technology. The IR needs to clearly explain how this technology will be applied to game development and operations.

    3. What should investors do?

    Investors should carefully analyze the information presented in the IR and focus on the following:

    • ‘inZOI’ Launch Plan and Projected Performance: Look for specific details such as release date, target market, and projected sales.
    • AI Investment Results and Commercialization Plan: Examine the roadmap for integrating AI into game development and operations.
    • Global Market Strategy: Assess the plans for expansion into key markets and strategies for improving performance.

    4. Action Plan for Investors

    Develop an investment strategy based on the information presented in the IR.

    • Positive Signals: Concrete and achievable growth strategies, strong potential for ‘inZOI’ success, and successful commercialization of AI are positive signs.
    • Negative Signals: Vague future strategies, uncertain prospects for ‘inZOI’, and lack of a clear plan for AI utilization are negative signals.

    It is crucial to make investment decisions based on a comprehensive consideration of the IR content and market conditions.

    How was Krafton’s performance in the first half of 2025?

    Krafton experienced a decline in both revenue and operating profit in the first half of 2025. This was primarily due to the underperformance of ‘PUBG Mobile’ and weakening PC sales.

    What is Krafton’s new IP ‘inZOI’?

    ‘inZOI’ is Krafton’s new intellectual property. The IR is expected to reveal more concrete information and launch plans for ‘inZOI’.

    How is Krafton investing in AI technology?

    Krafton is actively investing in core AI research and development. The company plans to leverage AI to improve efficiency in game development and operations.

    Krafton IR Analysis: Decoding the Future Beyond PUBG - Investment Strategies 관련 이미지

  • Krafton Q2 2025 Earnings: A Turning Point for the Gaming Giant?

    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.

    Frequently Asked Questions

    When is Krafton’s Q2 2025 earnings announcement?

    August 26th, 2025, at 9:00 AM KST.

    What are Krafton’s main games?

    PUBG and Injoyi are among Krafton’s key titles.

    What were the main reasons for Krafton’s disappointing Q1 results?

    The primary factors were challenges in establishing a stable revenue model for PUBG after its free-to-play transition and the delayed launch of Injoyi.

  • Krafton Q2 2025 Earnings Shock: Stock Plunge Ahead? Investment Strategy Analysis

    1. Krafton Q2 Earnings: The Reality of the Earnings Shock

    Krafton’s Q2 2025 revenue reached 662 billion KRW and operating profit was 246 billion KRW, both significantly below market consensus. Net profit plummeted to 15.2 billion KRW, characterizing the results as a true “earnings shock.”

    2. Analyzing the Underperformance: The PUBG Shadow

    The primary drivers of this underperformance are the slowing growth of PUBG and the disappointing performance of new game releases. Increased competition and a failing franchise expansion strategy have led to a decline in market share. New titles, including , have also underperformed, hindering the company’s search for new growth engines. Macroeconomic uncertainties further contributed to Krafton’s declining profitability.

    3. Fundamentals and Stock Outlook: A Glimmer of Hope Amidst Uncertainty

    While short-term downward pressure on the stock price is expected, the long-term outlook depends on the success of new IPs, a potential PUBG resurgence, and the commercialization of Krafton’s AI technology.

    4. Investor Action Plan: A Cautious Approach is Necessary

    Investors should carefully monitor further disclosures and market reactions while formulating their investment strategies. It’s crucial to focus on Krafton’s fundamental improvements rather than being swayed by short-term stock price volatility.

    Frequently Asked Questions

    Why did Krafton’s Q2 earnings fall short of expectations?

    A combination of factors contributed, including slowing PUBG growth, underperforming new games, and macroeconomic uncertainties.

    Is it a good time to invest in Krafton stock now?

    With the potential for a short-term stock decline, a cautious approach to investment is advised. Closely monitor further information releases and market conditions.

    What is the outlook for Krafton in the future?

    Long-term growth prospects depend on the success of new IPs, a potential PUBG revival, and the commercial application of Krafton’s AI technology.

  • Krafton Acquires Eleventh Hour Games: A Game-Changer?

    Krafton Acquires Eleventh Hour Games: What’s Happening?

    On July 25, 2025, Krafton announced the 100% acquisition of US game development studio Eleventh Hour Games. The acquisition, valued at ₩132.4 billion, aims to strengthen Krafton’s game development capabilities and enhance its global market competitiveness.

    Why This Acquisition?

    Krafton’s recent Q1 2025 earnings disappointment highlighted the need for new growth drivers. The acquisition of Eleventh Hour Games offers potential benefits such as new IP, expansion of existing IP (PUBG), and stronger penetration into the US market.

    How Will This Impact Krafton?

    Potential Upsides

    • Enhanced Game Development Capabilities: Expands development into various genres and potential new revenue streams.
    • Stronger Global Market Competitiveness: Provides a foothold in the US market and potential for global synergies.
    • New IP Development and Existing IP Expansion: Leverages Eleventh Hour Games’ development experience.

    Potential Downsides

    • Short-term Financial Burden: The ₩132.4 billion acquisition cost could strain Krafton’s finances.
    • Uncertainty about Post-Acquisition Synergies: Integration challenges and cultural differences could hinder success.
    • Increased Exchange Rate Risk: Fluctuations in the KRW/USD exchange rate could impact performance.

    What Should Investors Do?

    Investors should be prepared for potential short-term volatility and focus on analyzing the long-term impact of the acquisition and the realization of synergies. The performance of 1nJoy and the recovery of Unknown Worlds Entertainment are also key factors to watch. Careful consideration of exchange rate risks and financial risk management is essential.

    Frequently Asked Questions

    What is Eleventh Hour Games?

    Eleventh Hour Games is a US-based game development studio. While details remain limited, it is expected to contribute to Krafton’s growth.

    What was the acquisition cost?

    Krafton acquired Eleventh Hour Games for ₩132.4 billion.

    How will this impact Krafton’s stock price?

    The impact may be negative in the short term, but positive long-term effects are anticipated. Careful analysis is crucial before investing.