[NC]Krafton Maintains Over 1 Trillion Won in Sales; NC and Pearl Abyss Also Expected to Perform Strongly

Krafton Driven by PUBG and Subnautica 2 Boom

Pearl Abyss Set for Strong Earnings on Red Desert Success

As Krafton achieved over 1 trillion won in revenue for two consecutive quarters on the back of the success of 'Subnautica 2', expectations are rising that both NC and Pearl Abyss will also see improved earnings on the strength of their intellectual property (IP) performance.

'Subnautica 2'. Provided by Krafton

According to the gaming industry on August 2, Krafton recorded its highest-ever semiannual performance with provisional consolidated revenue of 2.6616 trillion won and operating profit of 972.5 billion won for the first half of this year. This achievement was driven by the popularity of the flagship IP 'PUBG: Battlegrounds' and 'Subnautica 2', which was released in Early Access last May.

'Subnautica 2' surpassed 5 million units sold in just 22 days after its launch. Combined sales of the 'Subnautica' IP, including previous titles, totaled 232.5 billion won in the first half. Krafton stated that the success of 'Subnautica 2' played a significant role in propelling PC platform sales above 500 billion won for the first time and boosting console sales by 143% year-on-year. The company announced its plan to develop this IP into a franchise, though it has not yet set an official launch date for the full version. However, Krafton CEO Changhan Kim said, "We plan to expand the fanbase over the next two years by continuously updating content."

Both NC and Pearl Abyss, which are set to announce their second-quarter results this month, are also expected to report strong numbers. According to FnGuide, NC is projected to post revenue of 683.3 billion won and an operating profit of 132 billion won, up 78.7% and 775.6% respectively from the same period last year. The strong results are anticipated as the impact of 'Aion 2' and 'Lineage Classic', which drove a rebound in first-quarter performance, is expected to extend into the second quarter, and as development studios acquired for expanding the mobile casual gaming business are successively consolidated into the financial statements, leading to results that surpass market expectations. Notably, 'Aion 2' is preparing for a global release, excluding China, in September.

Pearl Abyss is poised to capitalize on the effect of 'Red Desert'. Released in March, 'Red Desert' sold 2 million units within a day, reached 5 million before the first month was over, and surpassed 6 million units sold in just 83 days. At a recent shareholder meeting, Pearl Abyss announced it is developing downloadable content (DLC) for 'Red Desert' and plans to release details and a launch schedule within the third quarter. Projected revenue and operating profit are 280.1 billion won and 142.3 billion won, respectively. Compared to the same period last year, revenue is expected to increase by 252.0%, with a forecasted turnaround to an operating profit.

'Red Desert'. Provided by Pearl Abyss

Netmarble’s second-quarter revenue is forecast to be 734 billion won with operating profit at 88.9 billion won. Compared to the same period last year, revenue is expected to increase by 2.3%, while operating profit is projected to decrease by 12.1%. The performance of major new releases in the first half was assessed as somewhat below expectations. The long-term commercial success of 'Sol: Enchant', which is currently topping Google Play’s revenue chart, and the performance of new releases scheduled for the second half, remain critical variables.

Meanwhile, FnGuide predicts that Com2uS and Neowiz will see declines in operating profit to 6.9 billion won and 9.5 billion won, respectively, compared to the same period last year. Kakao Games and Wemade are expected to post losses. Kakao Games is projected to report revenue of 77.8 billion won and an operating loss of 27.7 billion won, while Wemade is expected to record revenue of 111 billion won and an operating loss of 18 billion won.

This content was produced with the assistance of AI translation services.