Krafton posts record half-year earnings on Subnautica 2 success

Korean game developer eyes long-term IP expansion with user generated-content initiatives and upcoming new titles

Krafton on Wednesday reported record revenue and operating profit for the first half of this year on the back of continued performances by its megahit PUBG franchise, a battle-royale-style shooter, and the early success of Subnautica 2, an underwater survival adventure.

According to the company’s preliminary earnings, Krafton logged 2.66 trillion won ($1.84 billion) in sales and 972.5 billion won in operating profit in the first six months of 2026, up 73.3 percent and 38.3 percent, respectively, from the same period last year. The first-half operating profit already accounted for approximately 92 percent of the firm’s full-year operating profit last year.

For the second quarter alone, the Korean game firm recorded revenue of 1.29 trillion won and operating profit of 410.9 billion won, up 94.9 percent and 67 percent, respectively, from the same period last year. Both figures marked the company’s highest-ever second-quarter earnings.

Krafton’s flagship PUBG intellectual property franchise generated 25 percent higher revenue in the first half than a year earlier, led by solid user engagement and growth in paying users across PC and mobile platforms, according to the company.

Krafton said it will continue transforming the PUBG franchise into a broader content platform by expanding user-generated content, or UGC, and global IP collaborations beyond automotive brands and K-pop celebrities. Since 2023, the popularity of UGC has risen steadily with more players participating in other players’ content, generating more monetization opportunities.

Subnautica 2, which began early access in May, sold 5 million copies within 22 days of its launch, indicating the new title’s potential to be Kraton’s next major franchise. The launch of the new game pushed Krafton’s quarterly PC revenue over 500 billion won for the first time.

“Krafton has proved the potential of our core IP in the second quarter, setting up the growing structure of our franchise IP,” said Kim Chang-han, CEO of Krafton, during an earnings call Wednesday. “We will strengthen the system to continue developing IP with a competitive edge.”

Krafton plans to unveil five new titles at Gamescom 2026 in Cologne, Germany, in August, including an unannounced project based on the PUBG intellectual property, alongside No Law, Project Zeta, Age Twisters and Tarae: The Unbound. The company aims to launch the new titles by 2027 as part of its strategy to cultivate more franchise IP.

  • Related Posts

    S. Korea inks W640b deal to export 19 Chunmoo rocket launchers to Croatia

    South Korea has signed a deal to export 18 Chunmoo multiple launch rocket systems to Croatia in an arms contract worth some 640 billion won ($477 million), the state arms…

    Why SpaceX changed Korea’s Anthropic IPO playbook

    Asset managers favor buying postlisting, as SpaceX exposed risks of chasing marquee US IPOs Mirae Asset Securities’ unexpected zero allocation in SpaceX’s June initial public offering is shaping how Korean…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    S. Korea inks W640b deal to export 19 Chunmoo rocket launchers to Croatia

    S. Korea inks W640b deal to export 19 Chunmoo rocket launchers to Croatia

    Watch: ENHYPEN Takes 7th Win And Triple Crown For “Bloody Paradise” On “M Countdown”; Performances By EVAN, &TEAM, And More

    Watch: ENHYPEN Takes 7th Win And Triple Crown For “Bloody Paradise” On “M Countdown”; Performances By EVAN, &TEAM, And More

    Trump wants to make this midterm year 'special' to avoid losing Republican control of Congress

    Trump wants to make this midterm year 'special' to avoid losing Republican control of Congress

    Programmer, accomplice arrested over massive illegal porn network

    Programmer, accomplice arrested over massive illegal porn network

    Chilly morning, warm afternoon expected across Korea Friday

    Chilly morning, warm afternoon expected across Korea Friday

    S. Korea beats Saudi Arabia to open men's basketball tournament

    S. Korea beats Saudi Arabia to open men's basketball tournament