Krafton Sees 27% Increase in Net Profits to $171.5 Million Despite Quarterly Decline

Krafton, the Korean publisher behind the popular battle royale game PlayerUnknown's Battlegrounds, has released its financial results for the third quarter, along with announcements regarding its expansion plans. The company reported revenues of $328.5 million and a net profit of $171.5 million, representing a year-over-year increase of 27%. Key highlights include: - Revenue of 433.8 billion KRW ($328.5 million), down 17% year-over-year - Net profit of 226.4 billion KRW ($171.5 million), up 27% year-over-year The decline in revenue marks the lowest quarterly figure since the fourth quarter of 2020. However, the growth of PUBG: Battlegrounds, particularly after its transition to a free-to-play model, has contributed to the company's profitability. PC sales have reached their highest level since 2019, generating $99.4 million, while console sales have seen a 133% year-over-year increase. PUBG Mobile has also performed well, generating 282.4 billion KRW ($214.1 million), a 26% increase year-over-year, and accounting for 65% of the company's total revenue. To build on this success, Krafton plans to release a 'lightweight build' of the game for lower-end devices. The company is also working to resume services for Battlegrounds Mobile India and will continue investing in the Indian gaming market. In addition to its financial results, Krafton has announced plans to acquire Swedish studio Neon Giant, the developer behind The Ascent. The company will also establish a new studio in Canada, which will lead the development of The Bird That Drinks Tears, a game based on a series of fantasy novels inspired by Korean mythology.