Company Hopes for Good News as It Addresses Impact on Mobile Growth
May 12, 2023
In a recent press interview, the Chief Financial Officer (CFO) of Krafton, Bae Dong-geun, discussed the aftermath of the ban on BGMI (Battlegrounds Mobile India) and its effect on the growth and earnings of PUBG Mobile. CFO Bae expressed optimism about the future, highlighting the potential for recovery and stabilization in the company's mobile gaming sector.
 |
| CFO of Krafton, Bae Dong-geun |
When asked about the outlook for Krafton's mobile performance, CFO Bae acknowledged the slower growth experienced in recent times. However, he emphasized the importance of receiving positive news regarding BGMI. He stated, "If we are also able to get some good news regarding BGMI, I believe that crafting the mobile performance will turn forward the better."
Regarding the impact of the ban on BGMI and its influence on Krafton's financials, CFO Bae addressed the issue during a Q&A session of the company's 2023 Q1 earnings call. He explained that the lower figures in the cost of goods sold (COGS) and application commissions were a result of the suspension of services for BGMI. CFO Bae further elaborated on the variations in margins for PC, mobile, and console platforms, attributing the changes to the shift in revenue mix caused by the ban.
CFO Bae indicated that if the ban on BGMI is lifted and Krafton can resume its services, the numbers will gradually increase. He stated, "If the ban is lifted on BGMI, and we are to resume with our services, the number will start to creep up." He also expressed his view on the company's overall performance for the year, expecting a more stable trend.
Despite the challenges faced due to the BGMI ban, Krafton reported a profit of 293 billion, reflecting a 12% decline compared to the previous year. The decline in profitability was primarily attributed to the suspension of BGMI services in India.
During the interview, CFO Bae answered additional questions pertaining to the company's performance:
Q: How has the ban on BGMI impacted Krafton's user base and player engagement?
A: The ban on BGMI has undoubtedly affected our user base and player engagement. With the suspension of services, we witnessed a decline in active players and a decrease in overall user engagement. However, we remain committed to addressing this challenge and regaining the trust and interest of our players.
Q: What steps is Krafton taking to mitigate the financial impact of the BGMI ban?
A: In response to the financial impact of the BGMI ban, we are implementing cost-saving measures and optimizing our revenue streams from other games and platforms. We are also actively exploring opportunities to diversify our offerings and expand into new markets to minimize the impact of the ban.
 |
| Krafton mobile report |
Krafton, known for its popular games like PUBG Mobile and BGMI, has been striving to adapt to the changing landscape of the gaming industry. The company remains hopeful for a positive outcome and is eagerly awaiting developments that may positively impact the mobile gaming market.
Note: BGMI (Battlegrounds Mobile India) is a popular mobile game developed by Krafton, while PUBG Mobile refers to the international version of the game.
watch whole press release here - Watch here