Krafton Reports Strong Q1 2026 Results and Announces Massive Shareholder Return Policy Including 1 Trillion Won Buyback and Dividend
Q1 2026 consolidated revenue: 1,371.4 billion KRW (+25% YoY), operating profit 561.6 billion (OPM 40.9%), net profit attributable to controlling interest 514.8 billion, basic EPS 11,701 won
Strong performance in Q1 vs. FY2025: Q1 revenue represents 41% of FY total; key IP PUBG and new titles inZOI, Last Epoch show solid growth; advertising segment boosted by ADK consolidation
New mid-to-long-term shareholder return policy (2026-2028): utilizing over 1 trillion KRW, including annual cash dividend of 100 billion KRW and self-share purchase/cancellation of over 700 billion KRW over 3 years
Share buyback and cancellation execution: completed purchase of 829,223 shares (Feb-Apr 2026), cancelled total 1,275,923 shares (including 446,700 existing treasury shares) on Apr 27; additional 100 billion KRW buyback plan (May-Aug 2026)\- First cash dividend for FY2025 (reduction method); planned annual dividend of 100 billion KRW for next 3 years
Completed acquisition of Japanese ad agency ADK group for 75 billion JPY (~710 billion KRW) in Oct 2025, expected synergy in gaming, media, IP
Continued R&D investment in AI: Q1 R&D cost 204 billion KRW (14.9% of revenue), proprietary AI foundation model development
Legal risk: ongoing lawsuit regarding Unknown Worlds earn-out (max $250 million), but management expects no material impact
Financial soundness: total assets 9.83 trillion, total equity 7.46 trillion, debt ratio 24.1%, cash & financial assets 3.1 trillion