People react as they attend the PUBG Global Invitational 2018, the first official esports tournament for the computer game PlayerUnknown’s Battlegrounds in Berlin, Germany, July 26, 2018.

HONG KONG (Reuters Breakingviews) – ONE HIT. The company behind one of the world’s most successful mobile games has applied to go public in South Korea. Krafton, which counts China’s Tencent as a key backer, more than doubled operating profit last year to $692 million, according to local media, citing business filings. That’s probably thanks to “PUBG Mobile”, the survival-themed shooting blockbuster that has racked up 1 billion downloads since 2018. With the pandemic trapping gamers at home for most of last year, the smash hit raked in $2.6 billion in revenue for 2020, making it the most lucrative mobile game in the world, research firm Sensor Tower reckons.

Assume Krafton can double operating profit this year. On the same 15 times valuation multiple that South Korean rival NCSoft trades at, that would imply a $20 billion enterprise value. Krafton’s next level would be to deliver another “PUBG” win. (By Robyn Mak)

Breakingviews

Reuters Breakingviews is the world’s leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.

Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here