안녕하세요, 크래프톤 IR 팀 현종민입니다. 2023년 2분기 실적발표 컨퍼런스 콜에 참여해 주신 국내외 투자자 및 애널리스트 여러분께 감사의 말씀을 드립니다. 본 실적발표는 KIFRS 기준, 연결실적에 대한 잠정치를 기반으로 하고 있으며, 별항 실적 및 재무정보는 외부 감사인의 검토 결과에 따라 일부 변경될 수 있습니다. 먼저 배동근 CFO의 주요 사업 및 재무 성과에 대한 설명이 있겠습니다. Good afternoon. I'm Jongmin Hyun from KRAFTON's IR team. I would like to extend my appreciation to analysts and investors from both home and abroad for joining KRAFTON's second quarter 2023 earnings release. Please note that today's earnings presentation is based on KIFRS consolidated estimates, and business and financial information are subject to change upon the independent auditor's review. I would now like to invite our CFO, Dongkeun Bae, to run through the highlights of the company's business and financial results. 안녕하세요. KRAFTON CFO Dongkeun Bae입니다. KRAFTON은 글로벌 IP인 PUBG의 안정적인 장기 서비스를 지속하는 한편, Scale-Up the Creative라는 새로운 전략을 수립하고, 내년부터 본격적으로 가시화될 신작 확장기를 준비하고 있습니다. PUBG PC는 출시 7년 차임에도 지속적인 성과를 창출하고 있으며, 2분기 PUBG PC 매출은 전년 동기 대비 35% 성장하였습니다. 또한 May 29th에는 중단되었던 India BGMI 서비스를 재개하여 ban 이전의 유저 트래픽을 회복하였으며, India의 국민 게임으로 사랑받는 BGMI의 위상을 공고히 하였습니다. Good afternoon. I'm Dongkeun Bae, KRAFTON's CFO. While continuing on with a steady long-term service of global IP, PUBG, under a new strategy of Scale-Up the Creative, we are preparing for a period of expansion for new titles, which will start to materialize as we enter into next year. Despite its seventh year of service, PUBG PC revenue in the second quarter was up 35% year-on-year, sustaining its performance uptrend. On May the 29th, we also announced resumption of BGMI India service, and regained pre-ban user traffic, and solidified its positioning as a national game, beloved by gamers in India. 현재 KRAFTON은 약 20개 이상의 파이프라인을 준비 중이며, 지속적인 스튜디오 투자와 세컨드 파티 퍼블리싱 게임 확보를 해나가고 있습니다. 이번 2Q에는 신규로 3개의 글로벌 스튜디오에 투자를 진행하였으며, 상장 이후 KRAFTON이 투자한 스튜디오의 수는 총 15개로 확장되었습니다. There are currently more than 20 titles in the pipeline, and we are continuously making investments into game studios and sourcing game titles for second-party publishing. Since going public, number of studios KRAFTON invested in expanded to 15 in total, following three investments made into global studios during the second quarter. 크래프톤의 도전과 변화에 항상 격려해 주시는 투자자 및 애널리스트 여러분, 열정과 노력으로 헌신해 주시는 크래프톤과 크리에이티브 스튜디오의 모든 구성원분들께 진심으로 감사의 말씀을 드립니다. I would like to take this opportunity to thank investors and analysts who have always shown their support for KRAFTON's transformation and the challenges it embarked on. Also to everyone working hard with dedication at KRAFTON and Creative Studios. 이어서 주요 사업 성과에 대해 말씀드리겠습니다. Let's now move on to key highlights of the business. 이번 이 분기 PC Console 부분에서는 PUBG 인게임과 아웃게임에서 새로운 즐거움을 선사하기 위해 기존에 볼 수 없었던 신선한 플레이 요소를 서비스에 도입하였습니다. 전술 장비 시스템 추가와 건플레이 업데이트로 보다 다양한 플레이가 가능해졌고, 아케이드 센터 신설을 통해 Team Deathmatch, Intense Battle Royale, Bluebomb Rush와 같이 battle royale 외 다양한 게임 모드를 상시 제공할 수 있게 되었습니다. In the second quarter for PC and consoles, in order to offer new elements of entertainment for PUBG's in and out game experience, we introduced fresh gameplay elements, quite different to what people are used to seeing. Tactical gear system was added with gunplay updates, enabling diverse array of plays. With the new setup of the arcade center, many game modes, including Team Deathmatch, Intense Battle Royale, Blueb omb Rush, can now be offered on a continual basis. 성공적인 무료화 전환 이후 Pay to Win 요소가 없음에도 불구하고, 대규모 트래픽과 고도화된 비즈니스 모델 덕분에 유료화 성과가 지속되고 있습니다. 월 2 million 명 이상의 신규 유저들이 꾸준히 유입되며, PUBG의 풍부한 게임 콘텐츠를 새롭게 경험하고 있습니다. 새로운 콘텐츠, 고도화된 유료화, 지속적인 신규 유저 유입 등을 통해 PUBG는 글로벌 시장에서 지속 성장 가능한 서비스임을 증명해 가고 있습니다. Following successful migration to free-to-play, despite there being no pay-to-win elements, underpinned by large-scale traffic and sophisticated business model, monetization is ongoing. While more than 2 million new users every month are onboarding the game, experiencing rich game content that PUBG has to offer. Through new content, scaled-up monetization, and continuous new user inflow, PUBG is proving to be a service that brings sustainable growth from the global market. 하반기에도 PUBG PC Console은 퀄리티 높은 IP 콜라보레이션, 시즈널 제작소 및 supercar 차량 콜라보, 기존 맵 업데이트 및 신규 맵 출시...... Survivor Pass...” In the second half, we anticipate PUBG PC and console to drive meaningful traffic and revenue performances, powered by high quality IP collaboration, seasonal workshops, and supercar collaboration, updates of the current map, and rollout of new maps, as well as a revamp of the Survivor Pass. In the mobile business, besides the major markets in Q2, we saw growth continue from the new regions. Progressive Skin and Royale Pass, which was revamped on every 2-month basis, secured steady revenue stream, and rebound in traffic is continuing, driven by UGC Mode, World of Wonder, and Dinoground Theme Mode. BGMI service was resumed on May 29th, thanks to the raving acceptance by gamers in India, traffic recovered to pre-ban level. In the second half, our target is to bring growth through full-fledged localized content offerings and large-scale esports event. India is a critical global market to KRAFTON, as BGMI is beloved by Indians, we will make investments in order to promote India's game ecosystem and grow side by side with it. Last week, on August third, we had a global launch of four player mobile PVP tower defense game, Defense Derby, was globally launched. It is a new strategy defense game with fierce psychological warfare and four-player PVP battles. Since its soft launch on July 6th, user reactions have been very positive, since the global launch on the 3rd of August, the feedback we are getting is also quite positive. As it is a new service, we are putting in corporate-wide efforts to make this game into a new revenue source. KRAFTON will continue to showcase different types of such quirky games like Defense Derby through the mobile platform. We will continue to showcase different types of such quirky games like Defense Derby through the mobile platform. Under the strategic direction of Scale-Up the Creative, KRAFTON carried out organizational revamp in the first half in order to focus on its publishing capabilities. We have made changes to our organization to set in place a system whereby a champion is named and assigned for each studio from KRAFTON, so that they may work to support and complement the decision-makings of the studios. In order to accelerate the process of exploring the creative that can be expanded into a global IP and deliver fresh game experience, our new game title proposal system, which was previously called The New and The Potential, has now been changed to The Creative. The Creative The Creative is a new game proposal process at KRAFTON HQ. Projects that go through the process and passes the requirements will be developed by a separate subsidiary for a soft launch. Depending on the outcome of the soft launch, KRAFTON will decide on whether or not to formally publish the game. The goal of The Creative process is to have no more than 30 people in the development team to bring a game to soft launch within 1.5 years, and increase the likelihood of success by scaling up the game through a small but efficient group. Creative를 발굴하고 성과를 창출하기 위한 조직 체계로의 전환을 통해, 앞으로 보다 많은 게임을 타석에 세우고, 높은 퀄리티의 신작 게임을 개발하고 퍼블리싱하여 여러 개의 글로벌 IP를 보유하는 시도를 적극적으로 전개하고자 합니다. We transitioned into an organizational structure to better discover The Creative and to bring tangible results. Going forward, KRAFTON will line up more games in the batter's box by developing and publishing new and high-quality titles to own multiple number of global IPs. KRAFTON Deep Learning Division, Deep Learning technology is being introduced to operations, contributing to increased production efficiency, such as reducing Concept Art production time, and researching various technologies with the goal of discovering new gameplay. The entire company has also actively adopted Deep Learning services, and currently 97% of all members are using Deep Learning services. Deep Learning technology is also critically applied in the open-world UGC game platform, Migaloo, which is being co-developed with NAVER Z and is scheduled for a soft launch at the end of the year. Migaloo becomes a platform that provides interactive content to users, and by enabling content creation and distribution using Sandbox tools for creators, it aims to build a Web3-based creator ecosystem. KRAFTON's Deep Learning Division is carrying out technological research into various different areas to explore new gameplay elements while adapting deep learning technology to our business, helping to save time spent on concept art workflow, which has enhanced our production efficiency. We have also been quite proactive in adopting deep learning, and currently, 97% of the KRAFTON members are making use of deep learning service. Migaloo, which is an open world UGC game platform co-developed with Naver Z and soon to be soft launched end of 2023, also is mainly powered by deep learning technologies. Migaloo will become a platform offering interactive content to the user base, enabling creators to make and distribute content using Sandbox tools, all of which will lead to forming of a Web 3.0 based ecosystem for creators. This was a brief update on Q2 2023 key business highlights. We now move on to financial performance in greater detail. 2023년도 2분기 연결 매출액은 KRW 387.1 billion으로 전분기 대비 28%, 전년 동기 대비로는 9% 감소하였습니다. 계절적 비수기 영향과 주요 콘텐츠들의 출시 일정이 대부분 하반기에 집중되어 있어 분기별 변동폭이 확대되었습니다. Consolidated revenue for the second quarter of 2023 was $387.1 billion, which is a decline of 28% Q on Q and 9% year-over-year. As major contents are mostly scheduled for release in the second half of the year, there was greater extent of quarterly fluctuation. 이어서 연결 기준 주요 영업 비용 항목과 영업 이익에 대해 말씀드리겠습니다. 2분기 연결 영업 비용은 KRW 255.6 billion으로 전분기 대비 KRW 100 million 감소, 전년 동기 대비로는 KRW 2.1 billion 감소하였습니다. 인건비의 경우, 핵심 개발 인력 채용에 집중하며 전분기 대비 소폭 증가한 KRW 103.2 billion을 기록하였습니다. 앱 수수료, 매출 원가 항목은 PC 매출 감소와 BGMI 서비스 매출 중단 영향으로 전분기 대비 KRW 14.6 billion, 전년 동기 대비 KRW 17.9 billion 감소한 KRW 32.2 billion을 기록하였습니다. 지급 수수료 비용은 e-스포츠 관련 투자 비용과 자체 Creative 콘텐츠 제작, 게임 개발에 관련된 외주 비용, 서버 비용 등을 포함하며, 전분기 대비 KRW 9 billion 증가, 전년 동기 대비 KRW 11 billion 감소한 KRW 70.6 billion을 기록하였습니다. 2023 2Q에는 PGS 1 대회를 개최하며 전분기 대비 비용 증가가 있었으며, 전년 동기 대비로는 EGMI 서비스 중단 기저효과, TCP 개발 종료로 인한 서버 비용 감소 등으로 인해 비용 감소가 있었습니다. Next is on the consolidated operating expense breakdown and operating profit. Q2 consolidated operating expense was KRW 255.6 billion, down KRW 0.1 billion Q-over-Q, and KRW 2.1 billion year-over-year. Labor cost was up marginally Q on Q, reporting KRW 103.2 billion, due to the focus placed on hiring developers. Platform fees and cost of revenue reported KRW 32.2 billion, down KRW 14.6 billion Q-over-Q, and KRW 17.9 billion year-over-year on PC revenue erosion and suspension of BGMI service revenue. On the back of esports-related investments and in-house creative content production, outsourcing costs for game development and server costs, commissions paid reported KRW 70.6 billion, up KRW 9 billion Q-over-Q, and down KRW 11 billion year-over-year. In the second quarter, with the hosting of PGS 1, commissions increased versus the first quarter, but there was year-over-year decline due to the base effect from suspension of BGMI services and lower server costs following the completion of TCP development. 광고 선전비는 BGMI 서비스 재개를 위한 비용 집행 등으로 전분기 대비 KRW 3.6 billion 증가하였으나, 전사적인 마케팅비 효율화 노력에 기인하여 전년 동기 대비 KRW 2.6 billion 감소한 KRW 8.7 billion을 기록하였습니다. 주식보상 비용의 경우 주가 상승폭이 전분기 대비 감소하며 KRW 1 billion 감소하였으나, 전년 동기 대비로는 2022 2Q 주가 하락으로 인한 환입 비저 효과로 KRW 17.5 billion 증가하였습니다. 결과적으로 2Q 영업이익은 전분기 대비 54% 감소한 KRW 131.5 billion을 기록하였고, 영업이익률은 34%를 달성하였습니다. 주식보상 비용을 제외할 경우 2Q 영업이익은 KRW 140.5 billion으로 전년 동기 KRW 157.5 billion 대비 11% 감소하였습니다. 주식 보상비용, 상각비 등 변동비를 반영한 조정 EBITDA는 전년 동기 대비 5% 감소한 KRW 167.7 billion을 기록하였습니다. Marketing expense was up KRW 3.6 billion Q-over-Q, spent for the purpose of restarting BGMI service and on efforts to bring marketing efficiencies corporate-wide, it fell KRW 2.6 billion year-over-year, reporting a total of KRW 8.7 billion. For stock-based compensation, due to a smaller increase in the share price versus last quarter, there was KRW 1 billion decline, while on a year-over-year basis, due to the base effect of reversal from equity price dip in Q2 of 2022, there was an increase of KRW 17.5 billion. All in all, Q2 operating profit reported KRW 131.5 billion, down 54% Q on Q on revenue declines impacted by seasonality. OPM posted 34%. Excluding stock-based compensation, Q2 operating profit was KRW 140.5 billion, down 11% year-over-year from 2022 figure of KRW 157.5 billion. Adjusted EBITDA, which accounts for depreciation and stock-based compensation, came in at KRW 167.7 billion, down 5% year-over-year. 이어서 영업외 손익에 대해 말씀드리겠습니다. 기타 손익과 금융손익을 포함하는 영업외 손익은 달러 강세로 외환 관련 이익이 발생했으나, 그 규모는 전분기 대비 KRW 51.4 billion 감소한 KRW 28 billion을 기록하였습니다. 마지막으로 2Q 연결당기 순이익은 전분기 대비 KRW 138.7 billion 감소, 전년 동기 대비로는 KRW 65.4 billion 감소한 KRW 1,285을 기록하였으며, 당기순이익률은 33%입니다. On the non-operating side, comprising of other and financial revenue, there were FX gains from strong dollar, it was down KRW 51.4 billion Q-over-Q, coming in at KRW 28 billion. Lastly, Q2 consolidated net profit was down KRW 138.7 billion Q-on-Q, and 65.4 billion year-over-year, coming in at KRW 128.5 billion, while net income margin posted 33%. 이상으로 2023년 2분기 실적에 대한 설명을 마치고 질의응답 시간을 갖도록 하겠습니다. 질문이 있으신 분은 말씀 부탁드립니다. This ends earnings presentation for the second quarter of 2023. We will now entertain your questions. 그럼 지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼의 별표와 일번을 누르시기 바랍니다. 별표와 일번을 누르신 순서대로 발언 기회를 드리겠습니다. 질문을 취소하시려면 별표와 이번을 누르시면 됩니다. Now, Q&A session will begin. Please press star one, star and one if you have any questions. Questions will be taken according to the order you have pressed the number star one. For cancellation, please press star two, that is star and two on your phone. 처음으로 질문해 주실 분은 Kiwoom Securities의 Jingu Kim님입니다. The first question will be provided by Jingu Kim from Kiwoom Securities. Please go ahead with your question. 네, 질문 기회 감사드립니다. 두 가지 질문을 드리도록 하겠고요. 첫 번째로, PUBG PC의 User Engagement 지표와 게임 내 Interaction 증가를 위해 회사가 어떤 노력을 좀 진행 중이신지, 그리고 이와 관련된, 향후 강화 계획이 있으시면 말씀을 좀 부탁드리겠고요. 두 번째로, 차기 신작인, 눈물을 마시는 새 IP 관련된 신작의 개발팀 셋업 진행 상황하고요, 개발 방향성 그리고 장르 설정 등에 대해서 좀 언급을 해주시고, 개발 과정을 체크할 수 있는 시네마틱 또는 인게임 영상 공개 계획이 있으시면은 추가로 말씀을 부탁드리도록 하겠습니다. 감사합니다. 게임 서비스의 이제 구체적인 내용에 대해서 질문을 주셔서 감사드리고요. User Engagement를 늘이기 위해서 사실은 되게 다양한 활동들을 합니다. 그중에 좀 특징적인 거 몇 가지를 말씀드리면, 첫 번째는 저희가 이제 그동안 이제 유저들이 친한 지인들, 이렇게 플레이를 해왔는데, 저희 이제 PUBG PC 내에 클랜을, 본격적으로 클랜 시스템을 도입해서요, 보다 이 이용자들이 오프라인에서 알지 못하는 사람들과도 클랜원으로서 같이 가입해서, 서로 같이 그 교전도 하고, 게임도 하고, 그리고 다양한 혜택 보상할 수 있어서 이게 이제 User Engagement를 늘리는데 새롭게 이제 저희가 도입한 시스템이고요. Thank you for asking a question regarding the specifics of our game servicing. In order to further enhance user engagement, there are many activities that we engage in. If I may highlight some of the key aspects, usually the users of PUBG PC, they in the past, they played with their friends and people that they know with. However, we for the PUBG PC, by adopting a clan system, people, the gamers can now play with people that they do not know, that who are not their own friends in an offline world. By having these gamers all become a member of a certain clan, based on which they can engage in warfield combats and play the game together, and at the same time be rewarded and compensated with their various different types of game benefits. These are some of the efforts that we are putting in to enhance user engagement. 전술 장비 개편이 있었었는데요. 이것도 이제 PUBG PC의 게임 플레이에 좀 친숙하셨다면 조금 이해가 쉬우실 수 있는데, 기본적으로 이제 전투를 하기 위해서 보통 이제 주 무기 2개 장착하고, 권총 들고, 그다음에 이제 수류탄이나 이제 투척물을 지니고 이제 교전 게임 플레이가 진행되는데, 전술 장비 개편을 통해서 사실은 이 큰 가방 안에 뭐 예를 들어서, 그 뭐라 그래야 되나? 바주카포 같은, 이런 무기도 이제 탑재할 수가 있고요. 여러 가지 이제 택티컬한 장비들을 동시에 이제 포함할 수 있어서 이렇게 되다 보니까, 드론 같은 것도 있고요. 드론도 넣을 수도 있고, 또 이제 응급 장비 등을 통해서 이제 회복이 훨씬 더 빠른 특성을 가질 수도 있고. 기존에 이제 주 무기를 활용해서 교전하던 거에서 여러 가지 이제 전술 장비를 통해서, 또 스쿼드끼리 전술 장비를 이렇게 나눠서 갖고, 플레이하는 것도 가능해지면서, 좀 게임 플레이의 메타가 다양해졌다. 예, 그런 부분들이 이제 유저 인게이지먼트와 관련해서 저희가 게임 플레이에서 개선하고 있는, 발전하고 있는 부분입니다. We've made some enhancements and improvements on the tactical gear, and if you've played the game, it will be easier for you to understand. When a gamer engages in a certain combat, he will be working with two main weapons and also be, will be equipped with a hand shotgun and hand grenade and different types of ammunition. These were the gameplays of PUBG. What we did was, we had an enhancement made and revamping of the tactical gear bag, so-called, in which you could actually carry like a bazooka, you know, ammunition, and also even drones, as well as some emergency equipment and gear that will help the game character recover and recoup from any damage that it experiences. These are some of the tactical gears that have now been added into and revamped into, into this, you know, big weapons bag. Also the squads could share these different types of tactical gear amongst themselves. These are some of the ways in which we want to diversify the gameplay, through which we wish to further enhance user engagement. Second 이제 질문 주셨던 눈물을 마시는 새 관련해서는요. 뭐, 지난번에 이제 잠깐 언급 드린 적이 있었는데, 저희가 캐나다 몬트리올에 크래프톤 몬트리올 스튜디오를 이제 설립했고요. 핵심 PD를 비롯한 핵심 개발 인력들은 뭐, 이미 채용돼서 실제로 게임 개발을 위한 여러 가지 업무들을 진행 중에 있습니다. 지금 뭐, 현재 개발 상황에 대해서 좀 구체적으로 말씀드리기는 어렵고요. 다만, 이 눈물을 마시는 새라는 소설 원작이 워낙 이제 독특한 내러티브가 있는 작품이기 때문에, 게임이니까 당연히 이제 게임성도 중요하지만, 이 소설 원작 IP를 스토리를 잘 전달하는 방법이 무엇일까? 뭐, 예를 들면, 그게 이제 오픈월드에서 뭐, 이렇게 여러 주인공들이 플레이하는 장르가 될 수도 있고, 아니면 스토리를 따라가는 뭐, 액션 RPG성이 될 수도 있는데, 어쨌든 이 눈마새 IP를 잘 살려서, 이 한국의 IP가 좀 글로벌하게 알려질 수 있도록, 성공할 수 있도록 하는 고민 중에 있고요. Regarding your second question on the game, The Bird That Drinks Tears. We've actually set up a KRAFTON Montreal Studio in Canada already, and we've have in place, we've engaged the main PD as well as some of the core developers have already been hired. They are in place, and they are currently working on this game title. At this point, it's quite difficult to tell you, with, the details as to the update of how things are going for this game title. What I can elaborate is that The Bird That Drinks Tears is a novel IP, and it has a very distinct narrative and storyline to it. Of course, when developing a game, game ability is a critical point, but we're also thinking hard as to how we could best deliver the storyline and the narrative of this original novel IP. Would the best way be for us to implement this into a game that is an open world, where there are multiple number of characters in the game? Or would the better approach be coming up with an action RPG game that follows the narrative of this novel, novel, the original IP. At this point, we are putting in a lot of thoughts into this. We want to be able to find the best way possible going forward, so that we can bring this Korea's IP into and make it into a global success. 인게임 영상과 이제 시네마틱에 대해서 말씀 주셨는데요. 저희가 지금 어쨌든 런칭 시점 계획하고 있는 거는 이제 2026년 이후이기 때문에, 뭐, 지금 뭐, 개발 초기 단계에서 시네마틱, 인게임 영상 공개 계획에 대해서 말씀드리기는 좀 어렵고, 다만 작년에 아마 보셨을 것 같은데, 작년에 저희가 이제 비주얼 콘셉트 트레일러 공개한 적이 있고요. 뭐 아트북도 이제 공개한 적이 있는데, 특히 뭐 저희 컨셉트레일러의 경우에는 뭐 지금도 아마 YouTube에 있을 텐데, 가서 보시면 아, 뭐 댓글들이나 이런 부분에서 사실은 이 눈물을 마시는 새라는 IP에 되게 충성스런 아, 아, 독자들이 이 저희 이 트레일러의 퀄리티나 아니면 그 디테일에 대해서 되게 긍정적으로 바라보고 있는 그런 뭐 내용들이 있기 때문에, 앞으로 이제 개발해 가면서 저희가 이제 완성도 있는 시점이 됐을 때, 예, 뭐 저, 질문해주신 그 인게임 영상이나 시네마틱 공개하는 거는 고민해 보도록 하겠습니다. Now, in response to the question about when we will be able to showcase the in-game trailers or the cinema, cinematics, because currently the slated date for the launch of this title is after 2026. It is too early for you, for us to be able to share that specific timing. Having said that, last year, we showcased the, the visual content trailer, and there is also an art book for, for this title as well. If you go to YouTube, you will be able to see that, how people responded, the comments that people wrote. These readers who are very loyal to the IP, The Bird That Drinks Tears, and who are very faithful to this IP, have really provided a positive feedback with regards to the quality of the trailers that we have provided. As we carry on with the development of this game title, once we are able to reach a certain level of completeness, then I think at that point in time, we will be able to think about and be able to share our plans regarding the in-game trailers and cinematics. 다음 질문 받도록 하겠습니다. Next question, please. 다음으로 질문해 주실 분은 유진투자증권의 정의훈 님입니다. The following question will be presented by Ui-hoon Jeong from Eugene Investment & Securities. Please go ahead with your question. 네, 안녕하십니까? 유진투자증권 정우윤입니다. 먼저 어, 모바일 매출 분기별 편차가 좀 발생한 것 같은데, 어, 중국 쪽 매출 전망을 지금 어떻게 하고 계신지가 궁금하고요. 두 번째는 아까 서두에 어, 인도에서 유저 지표가 올라왔다고 말씀해 주셨는데, 그러면 본격적인 수익화 시점에 대해서도 좀 질문을 드리고 싶습니다. 어, 삼 분기까지 계속해서 어, 유저 지표를 확보하는 데 이제 치중을 하실 건지, 아니면 유저 지표가 어느 정도 올라왔다고 판단이 되시면, 뭐 수익화에 본격적으로 들어가실 건지가 궁금하고. 그리고 세 번째로는 어, e스포츠 대회 개최 등 해서 일정 변경 혹은 대회 규모의 변동이 있을까요? 이게 비용 전반적으로 어떻게 가져갈 건지. 그러니까 최근에 어, 일, 상반기 내내 비용 효율화가 굉장히 잘 된 모습이 보여지고 있는데, 하반기에 이런 어, 좀 기조가 좀 이어질지 궁금해서 여쭤봅니다. 감사합니다. Thank you. I have a question on your mobile. First of all, on your mobile game revenue, we see that there's been some quarterly fluctuations and variability. Would like to understand, hence, what your take is when it comes to the outlook for the China market. Also, you talked about the India market, and you said that the user metrics have improved. When can we see, start to see monetization from the India market? Would you continue to focus on improving the user metrics in the third quarter, or would your focus be shifting to monetization come the third quarter of the year? Third question has to do with the eports competitions. Are there any specific changes to the schedule of these esports events and the size of such events? The reason why I asked this question is because in the first half of the year, the company has been quite good in controlling your cost efficiency. Would like to understand as to whether you will continue on with that stance going forward. 첫 번째, 모바일 매출 관련해서 질문 주셨었는데요. 일단 China를 제외하고, 저희가 PUBG Mobile 글로벌, 그러니까 BGMI는 ban, unban, 이런 좀 복잡성이 있으니까 BGMI 일단 제외하고, 저희가 PUBG Mobile 글로벌만 바라보면, 사실은 올해 2분기가 1분기 대비도 성장을 했고, 전년 동기 대비도 성장을 했거든요. 그래서 저희가 코로나 팬데믹 이후에 엔데믹 가면서 모바일 게임이 위축되고 하락했었었는데, 1분기 때도 말씀드렸다시피, 방향성에서는 평화도 됐다라고 생각하고요. 실제로 실적이 개선되는 모습이 보이고 있고, 그리고 유저 지표도 다시 올라오고 있기 때문에 일단 그렇고. 중국 매출 같은 경우는 사실 저희가 이제 직접 서비스를 하고 있지는 않기 때문에, 제가 저희가 중국 매출 전망을 말씀드리기는 좀 이제 어려울 거는 같고, 다만 이제 전반적인 추세 면에서는 PUBG Mobile 글로벌과 이렇게 비슷한 트렌드를 갖고 있다라고는 생각하기 때문에, 그렇게 이해해 주시면 좋을 것 같습니다. First, on our mobile revenue, aside from China, first, if you look at PUBG Mobile Global and also aside from BGMI, because in India, there was ban and uplifting of the bans, so there was another element there. Anyways, if you look at PUBG Mobile Global, our second quarter performance was actually better compared to the first quarter, and there was also an year-over-year growth as well. As we entered into the endemic phase, there's been some slump in the mobile game related performances and the user metrics. As we communicated during the first quarter, we are seeing a turnaround in terms of both the financial performance as well as improvement in the user metrics. Now looking at China, since China is not a market where we directly service our game, it will be difficult for me to be able to share with you what our specific revenue outlook is for that specific market. Having said that, I expect the trend from China to be more or less similar to the trend that we are seeing for PUBG and global. In the in India, well, Regarding India, the ban was lifted, and of course the user traffic actually improved, and yes we will be starting to monetize the business from the Indian market. We think that monetization will start to show and crystalize or materialize as we enter the second half of the year. And you would know since you are familiar with KRAFTON that in no way would we sacrifice or in any way infringe on our user base for us to gain short-term revenue performance. We are more focused on long-term servicing of the game. That is basically where our focus lies. At this point, we are anticipating to see monetization start to really kick in from the second half of the year, and we will consider how the user metrics actually moves in setting that gradual direction. The third question you asked was about e-sports. In fact, we actually announce our annual plans for hosting e-sports events in advance. We do not act spontaneously, such as canceling an e-sports event that we had planned due to cost concerns. Last year, we planned all the to cost concerns. Last year, we planned all the e-sports events for this year, set the schedule, and are working with various partners. Especially this year, because of Especially this year, because of COVID, it was difficult to hold offline events. We revived our global offline event, PGS, and the national competition, PUBG Nations Cup, will be held in Korea this autumn. There are no special short-term changes or schedule adjustments. In terms of cost-effectiveness, we have been doing e-sports for several years, and we found that the effects were not well proven, or in some ways, we had invested a lot in e-sports. a lot in e-sports. From the second half of last year, we actually planned e-sports and our live service to mutually benefit each other like gears, supporting the live service. That is the basis on which we are planning and executing e-sports. We are definitely making efforts in various aspects to be cost-effective during the process. For example, we could bear the cost of hosting the event ourselves, but we also use sponsors and donors to cover the costs, and we share the revenues. Since Since our PUBG IP has that much influence, such things are possible. In any case, regarding e-sports, compared to the past, as we showed in the first half of this year, In any case, regarding e-sports, compared to the past, as we showed in the first half of this year, we plan to proceed more cautiously. Responding to your third question on esports, we come up with an annual plan on holding these events, and we pre-communicate that with the greater market. We do not take on any short-term approaches because of cost burdens. We would not, you know, cancel an event because it has certain cost implications. Already last year, we've set out a plan for this year, which has already been announced, and it's all in the schedule, and we are at this point collaborating with different companies in holding these events. In 2023, we reinstated PGS, because during the COVID period, we were unable to hold offline events, but we will resume with the PGS event. Also in Korea, during the autumn season, there will be PUBG Nations Cup will be hosted. In terms of the size of the schedule of these events, no, there have not been any changes that will happen for this year. From a cost efficiency perspective, for us, what is important is that these esports events work in a very organic manner in providing support to our live services. In the past, esports were considered to be a mere investment, but we have taken on an approach starting second half of last year, where we consider this virtual cycle like a wheel, an organic wheel, that where the esports planning and implementation has positive impact on the live servicing of our games. There has been a shift in that focus. In terms of the cost efficiencies, the hosting fees of these events, the entirety of the cost may not be borne by just KRAFTON. We could engage sponsors and other companies to bear that expense. This is possible because PUBG IP has great level of influence, and of course, we share the revenue that come out of those sports events. From the esports events perspective, as we have shown during the first half of the year, we will approach this in a very prudent manner from cost efficiency perspective. Next question, please. The The following question will be presented by Stanley Yang from JP Morgan. Please go ahead with your question. Yeah, 안녕하세요, 저 두 가지 질문 있습니다. 첫 번째 질문은, 그 모바일 매출이 23% year-over-year 하락을 했는데요. 그 CEO님이 comment 해 주실 때, 전년 그 PUBG Mobile Global은 year-over-year 성장을 했다고 하셨는데, 그러면은 뭐 China, 그다음 India 이런 데를 빼고 나머지는 좀 성장을 했다는 말씀인지 한 번 더 확인해 주시면 감사하겠고요. China 쪽에서 많이 빠졌다라는 얘기가 되는 것 같은데요. 그런 쪽이 좀 clarify 해주시면 감사하겠고요. 두 번째는 그 차기작, 그 Black Budget에 대해서 그 개발 현황하고, 그 launch까지 어떤 계획이 있으신지, 이제 이 Black Budget이 기존의 그 PUBG IP와의 어떤 차별화 점은 어떤 건지 말씀해 주시면 감사하겠습니다. Thank you for taking my question. Just two questions. First one is, your mobile revenue had, on a year-over-year basis, dipped by 2%-3%. Previously, you said that your PUBG Mobile Global had posted a growth. Would that mean that excluding China and India, there's been growth from these other markets? I just want to double check on this, because that would mean that there was a significant decline from the China market. If you could give some color there, explain, that would be helpful. Second question is, on the Black Budget project. Can you update us on this and also your launching plan and how the Black Budget game title is different from the PUBG IP? Yes, I'm responding Responding to the question, I think there was a bit of a confusion because of many categories that exist under our mobile business. I was explaining previously, aside from BGMI, KRAFTON's PUBG Mobile Global, that was what I was referring to when I said there was growth. On a consolidated basis, I think, what you're asking is based upon the platform. If you look at on a consolidated basis, the platform performance from mobile, you are correct, it did dip on a year-over-year basis. Black Budget 관련해서는 일단 뭐 저희 그전에도 이제 말씀드렸던 것처럼, 내년 Q4 이제 런칭하는 목표는 그대로 이제 갖고 있고요. 그리고 이제 얼마 전에 이제 사내에서, 사내에서 이제 구성원들끼리 이제, vertical slice에 대해서 이제 테스트를 했었었는데, 저희 내부적으로는, 반응이 되게 좋았었습니다. 그래서 일단 기대하고 있고요. 저희가 계획한 대로 개발하고 있고, PUBG IP, PUBG Studio에서 만들긴 하지만, 뭐 그렇다라고 해서 이제 PUBG IP와 뭐 같거나 유사하다라고 보시기는 어렵고요. 물론 gunplay가 포함되죠. PUBG Studio가 원래 이제 사실적인 gunplay, 이거 구현하는 데 대단한 이제 강점이 있는 스튜디오인데, 기존의 PUBG가 이제 battle royale 장르였다면, 저희가 지금 개발하고 있는 Black Budget은 뭐 쉽게 얘기하면, 저희가 extraction shooter, 뭐 looter shooter 장르라고 보시면 되고요. 이제 in-game과 out-game 간의, 이 연계, 뭐 이런 것들이 되게 중요하고, 시장에 현재 이제 몇몇 작품들이 있지만, 잘 아시듯 결국 어떤 장르를 잘 define 해내는 IP가, 결국은 그 해당 장르를 이제 제패하는 IP가, 되는 경향성을 과거의 글로벌 게임 시장에서 많이 저희가 뭐 보아왔는데, 아직은 잘 저희 생각에는 잘 정의되지 않은 extraction shooter 장르에서, Black Budget이 도전해서, 뭔가 좀 성과를 내보겠다, 뭐 이런 생각입니다. Regarding your question on Black Budget, our objective is to launch this game title in Q4 of 2024. There is no change to that previous planning. Internally, we've conducted an in-house vertical slice testing. The responses and the feedback that we got was quite positive. We have high expectations for this game title and going forward. Yes, you are right. It is being developed by PUBG Studios. One cannot say that this game title has same characteristics as the PUBG IP. Of course, it does incorporate gunplay. PUBG Studios is well known to have a very strong competitiveness in rendering a most, most reality-like gunplay in its games. The difference between the two is PUBG is battle royale, while the Black Budget is more of an extraction shooter or looter shooter game, game. The link between the in-and-out game experience is considered very important. We believe that it's been proven in the global market that a game title that really defines the genre is going to be the one flagship game that's going to dominate that certain category. We think that at this point in time, there is no single game title that has been able to define, completely define the extraction shooter game genres. We think that with the launch of this game, we'll be able to enjoy and gain and generate good performance. Well, Well, thank you very much. This brings us to the end of KRAFTON's second quarter 2023 earnings presentation. I would like to once again thank our investors and analysts for your undivided support and interest that you've shown our company. Thank you.