KRAFTON reported record first-half revenue of ₩1.54 trillion ($1.11 billion) as its flagship PUBG franchise continued driving growth, though second-quarter results revealed underlying momentum concerns.
The South Korean gaming giant posted operating profit of ₩703.3 billion ($508.5 million) for the six months through June, representing 11.9% revenue growth and 9.5% profit expansion year-over-year. However, second-quarter performance showed notable sequential weakness, with revenue declining to ₩662 billion ($478.6 million) from the prior quarter’s ₩874.2 billion.
Mobile operations, which generated ₩960 billion ($693.6 million) in half-year revenue, experienced particular softness in the second quarter with both quarter-over-quarter and year-over-year declines. PC gaming remained more resilient at ₩543.2 billion ($392.6 million), bolstered by PUBG: Battlegrounds character upgrade features introduced in April.
The results come as KRAFTON faces legal turmoil over its Subnautica 2 franchise. Former Unknown Worlds studio founders filed a lawsuit accusing the publisher of deliberately delaying the game’s 2025 launch to avoid a potential $250 million earnout payment. KRAFTON denied the allegations and delayed the title to 2026, citing insufficient content.
While the company launched 13 new game projects as part of its five-year expansion strategy, investors may question whether KRAFTON can maintain its growth trajectory without its core mobile business firing on all cylinders.
