KRAFTON

SUMMARY OF Q2 2022 EARNINGS DETAILS:

CONTRIBUTING FACTORS

KRAFTON’s mobile business recorded revenue of $550.7 million USD (715.6 billion KRW) during H1 2022. Released four years ago, PUBG MOBILE currently ranks second in sales among global mobile games. The company continues to provide new content and fresh gameplay experiences through its multitude of IP collaborations. To ensure a fairer playing field for all, the game has also adopted stricter anti-cheat programs. KRAFTON’s other mobile title, NEW STATE MOBILE, has continued to evolve, refocusing the way it upkeeps live service and expanding its IP collaboration efforts. As a result, NEW STATE MOBILE’s total play time and play frequency increased in Q2 2022.

PUBG: BATTLEGROUNDS, which is available on PC and consoles, recently celebrated its fifth anniversary. The game, which transitioned to a free-to-play business model in January 2022, has seen a steady inflow of more than 80,000 new users per day. Accordingly, average revenue per user (ARPU) across all platforms increased more than 20% QoQ. International markets (outside South Korea) drove 94% of the game’s revenue during Q2 2022.

NEW GAMES FOR 2022 AND BEYOND

At gamescom 2022, which will be held late-August in Cologne, Germany, KRAFTON will formally reveal Unknown World’s new IP, which is set in a sci-fi world that features imaginative turn-based gameplay. Striking Distance Studios’ CEO Glen Schofield will also take the stage at gamescom Opening Night Live to share a new look at The Callisto Protocol, the upcoming next-generation survival horror game that is set to launch on Dec. 2, 2022.

Additionally, KRAFTON recently announced it has begun active development on an untitled game project based on the popular Korean fantasy novel, The Bird That Drinks Tears. The game’s official website also recently launched as the company ramps up efforts to recruit top tier global talent to help realize its ambitious vision. Alongside the website, new concept art and other details were also revealed to further illustrate the project’s overall visual identity and tone. To define this visual identity, the company is working with renowned concept artist Iain McCaig, who has been involved in early character visualizations for Star Wars characters, in addition to his work on many other blockbuster film franchises, such as The Avengers, Harry Potter and Terminator. By the end of 2022, KRAFTON plans to release an art book that highlights these visual R&D results from the past two years.

BREAKDOWN OF H1 2022 and Q2 2022 PERFORMANCE RELATIVE TO PREVIOUS PERIODS

▲Table: KRAFTON’s 1H22 (preliminary) earnings on a consolidated basis (unit: KRW100M)