Earnings Alerts

Krafton (259960) Earnings: 2Q Operating Profit Falls Short of Estimates with 26% YoY Decline

  • Krafton reported an operating profit of 246.0 billion won for the second quarter of 2025, which is a 26% decline compared to the same period last year.
  • The reported operating profit fell short of the market’s estimate, which was 278.46 billion won.
  • Krafton’s net profit for the quarter was 15.2 billion won, marking a 96% decrease on a year-over-year basis.
  • This net profit figure was significantly below expectations, with estimates set at 228 billion won.
  • The company’s sales for the quarter were 662.0 billion won, which is a 6.4% drop from the previous year.
  • Sales figures also missed projections, which were estimated at 698.7 billion won.
  • Analyst recommendations for Krafton currently include 24 buys, 6 holds, and no sells.

Krafton on Smartkarma

Analyst coverage of Krafton on Smartkarma is insightful and positive. Douglas Kim, in the report “Krafton: Acquisition of Controlling Stake in Neptune from Kakao Games,” highlights Krafton’s acquisition of a 39.37% stake in Neptune Company from Kakao Games for 165 billion won. This move is expected to significantly increase Krafton’s ownership in Neptune, showcasing a strategic investment. Additionally, Krafton’s strong performance in the first quarter of 2025, surpassing sales, operating profit, and net profit expectations, reflects the company’s growth trajectory.

In another report by Douglas Kim, “20 Korean Stocks That Could Outperform Next 2 Months Amid Tariff War and Local Political Turmoil,” various Korean stocks are discussed as potential outperformers in the market amidst global tariff tensions and local political uncertainties. The analysis suggests that these 20 stocks, including Krafton, have the potential to outshine the market in the upcoming months, offering a defensive approach during uncertain times. This coverage sheds light on promising investment opportunities within the Korean stock market.


A look at Krafton Smart Scores

FactorScoreMagnitude
Value2
Dividend1
Growth5
Resilience5
Momentum2
OVERALL SMART SCORE3.0

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Krafton is set for a promising long-term outlook. With a high score in Growth and Resilience, the company seems well-positioned to capitalize on future opportunities and navigate challenges effectively. Krafton’s focus on developing console, mobile, and computer games aligns with a growing demand for digital entertainment.

Krafton’s low score in Dividend suggests that the company may not be prioritizing dividend payouts to investors at the moment. However, the strong Momentum score indicates that the company is actively engaging in initiatives to drive its performance forward. Overall, with a mix of high and moderate scores across different factors, Krafton appears to have a solid foundation for continued success in the gaming industry.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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