Krafton’s latest figures show 28% decline from record first quarter 2023 | Pocket Gamer.biz

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Krafton Reports Decline in Q2 2023 Revenue

Krafton, the South Korean video game company, has released its latest financial report for Q2 2023. The report reveals a decline in revenue compared to the previous year, indicating potential challenges for the company in the coming months.

Mobile Dominance, But Declining Revenue

Mobile games continue to be a significant source of revenue for Krafton, accounting for 63.3% of the total revenue in Q2 2023. However, there has been a 12.2% decline in mobile revenue compared to the same period last year. This decrease raises concerns about the company’s ability to maintain its mobile dominance.

Operating Profit Takes a Hit

Krafton’s operating profit for Q2 2023 stood at 131.5 billion won ($100 million), representing a significant decline from the previous quarter. In Q1, the company reported an operating profit of 283 billion won ($215 million), indicating an 18.5% decrease. This decline raises questions about Krafton’s profitability and financial stability.

A Return to Previous Figures

While the decline in revenue and operating profit may be a cause for concern, it’s important to note that Q1 2023 was an exceptional period for Krafton. The company experienced a significant spike in operating profit during that quarter, which makes the current results align with previous figures. It remains to be seen whether Krafton can regain its previous level of success.

Adjusted EBITDA Decline

The Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q2 2023 was 167.7 billion won ($128 million), which is a 47.4% decline from the previous quarter. This decline further emphasizes the challenges faced by Krafton in maintaining its financial performance.

Concerns for the Future

Although Krafton’s financial performance returning to previous figures is expected, it raises concerns because 2022 was a difficult year for the company. Despite the release of BattleGrounds Mobile India, which had a successful return after a ten-month absence, the revenue did not see a significant increase. The company needs to address these challenges and find innovative solutions to drive revenue growth.

We listed Krafton as one of the top 50 mobile game makers of 2022. Stay tuned for our upcoming list for 2023, which will be revealed at our event at Gamescom on August 22.