Krafton Bets on India as PUBG Ecosystem Powers Q3 Earnings

South Korean gaming publisher Krafton Inc. had a strong third quarter for FY2025, with a consolidated revenue of ₩870.6B ($600.8M), increasing revenue by 21% year-on-year (YoY) basis. Krafton recorded an operating profit increase of 7.5% YoY and 41.7% QoQ (quarter-on-quarter), reaching ₩348.6B (~$240.7M). Net profit also increased by 2,278% QoQ, driven by foreign currency gains and greater operating leverage.

The publisher attributed its success to continued growth in the PlayerUnknown's Battlegrounds (PUBG) franchise performance across PC and mobile platforms, as well as increased traction in emerging markets, particularly in India, which continues to serve as Krafton's strategic engine.

PUBG Franchise Drives Krafton's Growth

The PUBG franchise remains Krafton's revenue engine. PC revenue reached ₩353.9B (~$243.9M), an increase of 61% QoQ and 29% YoY, while mobile revenue reached ₩488.5B ($268.3M), increasing 14.8% YoY basis, indicating strong engagement with PUBG Mobile, Battlegrounds Mobile India (BGMI), and Peacekeeper Elite. 

The quarter saw a sustained player engagement rate, with monthly active users increasing 9% YoY and paying users increasing 21% on PC. 

The quarter’s performance was reinforced by cross-media collaborations and fashion brand tie-ins, expanding the IP awareness. Meanwhile, the World of Wonder user-generated content mode increased player engagement and creator participation. These initiatives helped overcome decreased console sales (₩10.2B or $7.1M, down 13.8% YoY), and highlighted the need for ongoing live operations.

Krafton's operating expenses increased by 32.2% YoY to ₩522B ($360.5M), with higher platform fees (+27%), commissions (+76%), and marketing costs (+45%). However, the company's profitability remained robust due to effective asset use and excellent monetisation of existing IPs.

India, AI, and New Franchise Pipeline

To solidify BGMI's dominance in India, the publisher is leveraging localized content creation, regional brand partnerships, and tailored marketing. Partnerships with  Jio and Mahindra, and regional-language expansion beyond Hindi and English, aim to strengthen brand localisation and player accessibility. Krafton’s most significant step in India-specific localization was to introduce “Stepwell”, an India-inspired battleground location within the Erangal map.

The company has invested approximately ₩300B ($207.2M) in its India market in response to the continued growth. Apart from investing in the gaming sector, Krafton India is also expanding esports in India with new tournaments like Battlegrounds Mobile India Pro Series (BMPS) and Battlegrounds Mobile India international (BMIC), contributing to a deeper competitive ecosystem.

Beyond Battlegrounds Mobile India (BGMI), Krafton India is aiming for social games growth in India with two cricket titles, including Real Cricket 24.

These changes resulted in tangible change. BGMI experienced double-digit growth, with average paying customers increasing 34% year on year and total users reaching 250M in the country.

Additionally, Krafton is expanding its franchise portfolio by preparing 11 new projects. In addition to PUBG ALLY, an AI-driven cooperative gaming system slated for the first half of 2026, the publisher is collaborating with SK Telecom under Korea's National AI consortium to create a 500-billion-parameter AI foundation model. 

These actions demonstrate Krafton's intention to combine creative iteration with automation in upcoming IP development cycles. By integrating regional growth with advanced R&D and AI-integration, Krafton’s leadership under CEO Sean Hyunil Sohn is aligning its India playbook with marketing collaborations that frame its next growth cycle.