• Gravity Reports First Quarter of 2024 Results and Business Update

    来源: Nasdaq GlobeNewswire / 09 5月 2024 06:00:00   America/New_York

    Seoul, Korea, May 09, 2024 (GLOBE NEWSWIRE) -- GRAVITY Co., Ltd. (NasdaqGM: GRVY) (“Gravity” or “Company”), a developer and publisher of online and mobile games based in South Korea, today announced its unaudited financial results for the first quarter ended March 31, 2024, prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board and business updates.

    FIRST QUARTER 2024 HIGHLIGHTS

    • Total revenues were KRW 119,779 million (US$ 88,917 thousand), representing a 17.7% decrease from the fourth quarter ended December 31, 2023 (“QoQ”) and a 27.4% decrease from the first quarter ended March 31, 2023 (“YoY”).
    • Operating profit was KRW 26,869 million (US$ 19,946 thousand), representing an 1.7% increase QoQ and a 38% decrease YoY.
    • Profit before income tax expenses was KRW 32,498 million (US$ 24,125 thousand), representing a 24.2% increase QoQ and a 29.7% decrease YoY.
    • Net profit attributable to parent company was KRW 26,866 million (US$ 19,944 thousand), representing a 24.5% increase QoQ and a 26.3% decrease YoY.

    REVIEW OF FIRST QUARTER 2024 FINANCIAL RESULTS

    Revenues

    Online game revenues for the first quarter of 2024 were KRW 18,065 million (US$ 13,410 thousand), representing a 24.7% decrease QoQ from KRW 23,980 million and a 20.4% decrease YoY from KRW 22,696 million. The decrease QoQ was mainly attributable to decreased revenues from Ragnarok Online in Thailand and Taiwan. Such decrease was partially offset by increased revenue from Ragnarok Online in Japan. The decrease YoY was largely due to decreased revenues from Ragnarok Online in Thailand and Taiwan.

    Mobile game revenues were KRW 98,548 million (US$ 73,157 thousand) for the first quarter of 2024, representing a 15.4% decrease QoQ from KRW 116,456 million and a 29.1% decrease YoY from KRW 138,994 million. The decrease QoQ resulted primarily decreased revenues from Ragnarok Origin in Southeast Asia. Such decrease was partially offset by increased revenues from Ragnarok Origin in North, Central and South America which was launched on February 28, 2024, and Ragnarok Idle Adventure in Thailand which was launched on January 18, 2024. The decrease YoY was due to decreased revenues from Ragnarok Origin in Taiwan, Hong Kong and Macau and Ragnarok X: Next Generation in Korea. This decrease was partially offset by increased revenues from Ragnarok Origin in Southeast Asia and North, Central and South America.

    Other revenues were KRW 3,166 million (US$ 2,350 thousand) for the first quarter of 2024, representing a 37.8% decrease QoQ from KRW 5,094 million and a 2.8% decrease YoY from KRW 3,257 million.

    Cost of Revenue

    Cost of revenue was KRW 73,628 million (US$ 54,657 thousand) for the first quarter of 2024, representing a 21.1% decrease QoQ from KRW 93,330 million and a 30.2% decrease YoY from KRW 105,485 million. The decrease QoQ was mainly due to decreased commission paid for mobile game services related to Ragnarok Origin in Southeast Asia. The decrease YoY was primarily due to decreased commission paid for mobile game services related to Ragnarok Origin in Taiwan, Hong Kong and Macau, and Ragnarok X: Next Generation in Korea.

    Operating Expenses

    Operating expenses were KRW 19,282 million (US$ 14,314 thousand) for the first quarter of 2024, representing a 25.2% decrease QoQ from KRW 25,769 million and a 19.4% increase YoY from KRW 16,144 million. The decrease QoQ was mainly due to decreased commission paid for payment gateway fees for Ragnarok Online in Thailand and Taiwan, impairment loss on intangible assets, and advertising expenses for Ragnarok Begins in Korea and G-STAR 2023. The increase YoY was mainly due to increased advertising expenses for Ragnarok Idle Adventure in Thailand.

    Profit Before Income Tax Expenses

    Profit before income tax expenses was KRW 32,498 million (US$ 24,125 thousand) for the first quarter of 2024 compared with profit before income tax expense of KRW 26,168 million for the fourth quarter of 2023 and profit before income tax expenses of KRW 46,226 million for the first quarter of 2023.

    Net Profit

    As a result of the foregoing factors, Gravity recorded a net profit attributable to parent company of KRW 26,866 million (US$ 19,944 thousand) for the first quarter of 2024 compared with net profit attributable to parent company of KRW 21,576 million for the fourth quarter of 2023 and a net profit attributable to parent company of KRW 36,466 million for the first quarter of 2023.

    Liquidity

    The balance of cash and cash equivalents and short-term financial instruments was KRW 484,526 million (US$ 359,686 thousand) as of March 31, 2024.

    Note: For convenience purposes only, the KRW amounts have been expressed in U.S. dollars at the exchange rate of KRW 1,347.08 to US$ 1.00, the noon buying rate in effect on March 29, 2024 as quoted by the Federal Reserve Bank of New York.

    GRAVITY BUSINESS UPDATES

    Ragnarok Online IP-based Games

    • Ragnarok Online, an MMORPG PC game

    Ragnarok Online aims to be officially launched in China in the first half of 2024 as it received an International Standard Book Number ("ISBN") code from the Chinese government in February 2024, followed by Ragnarok Origin and Ragnarok X: Next Generation in August 2023 and December 2023, respectively.

    • Ragnarok Origin, an MMORPG mobile and PC game

    Ragnarok Origin was launched in China on March 26, 2024 and North, Central, and South America in February 28, 2024.

    • Ragnarok X: Next Generation, an MMORPG mobile game

    Ragnarok X: Next Generation aims to be launched in China in the second half of 2024, with preparations underway for its launch in Japan.

    • Ragnarok: Rebirth, an MMORPG mobile game

    Ragnarok: Rebirth aims to be launched in Southeast Asia in June 2024.

    • Ragnarok: Novice Hearts (tentative title), an MMORPG mobile game

    Ragnarok: Novice Hearts (tentative title) aims to be launched in Taiwan, Hong Kong and Macau in June 2024.

    • Other Ragnarok Online IP-based games

    Ragnarok Monster's Marble, a 3D Casual Board Game, is scheduled to be launched in 2024.

    Ragnarok in Wonderland, a Casual Healing Tycoon mobile game, is scheduled to be launched in Korea in the second half of 2024.

    Ragnarok Landverse, an MMORPG Blockchain PC game based on P2E systems, is aiming to be launched in Thailand in June 2024.

    Ragnarok Monster World, a Real-Time Strategy Blockchain PC (Window Client) and mobile game, is scheduled to be launched in Thailand in the second half of 2024.

    Other IP-based games

    • Generation Zombie, a Turn-based Survival Horror Card mobile game

    Generation Zombie was launched in Global on March 13, 2024. The game is published by Gravity Interactive, Inc., Gravity's wholly-owned subsidiary in the US.

    • TOKYO PSYCHODEMIC, a 2D Cinematic Profiling Adventure PC and console game

    TOKYO PSYCHODEMIC will launch in Japan on May 30, 2024. The game is developed by Gravity Game Arise Co., Ltd. ("GGA"), Gravity's wholly-owned subsidiary in Japan, and will be published in Japan by GGA. And Gravity will publish the game in the rest of the global regions excluding Japan in the second half of 2024.

    Expansion of Ragnarok IP-business

    Ragnarok Golf Monsters is an indoor-screen golf brand based on the Ragnarok monster characters. Gravity Communications Co., Ltd. is aiming to launch the first facility of Ragnarok Golf Monsters in Taipei, Taiwan in 2024.

    Investor Presentation

    Gravity issued an investor presentation. The presentation contains the Company’s recent business updates, results of the first quarter in 2024 and Gravity’s business plan. The presentation can be found on the Company’s website under the IR Archives section at https://www.gravity.co.kr/en/ir/updates. Korean and Japanese versions of the presentation are also provided on the website.

    About GRAVITY Co., Ltd. ---------------------------------------------------
    Gravity is a developer and publisher of online and mobile games. Gravity's principal product, Ragnarok Online, is a popular online game in many markets, including Japan and Taiwan, and is currently commercially offered in 91 markets. For more information about Gravity, please visit http://www.gravity.co.kr.

    Forward-Looking Statements:

    Certain statements in this press release may include, in addition to historical information, “forward-looking statements” within the meaning of the “safe-harbor” provisions of the U.S. Private Securities Litigation Reform Act 1995. Forward-looking statements can generally be identified by the use of forward-looking terminology, such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe”, “project,” or “continue” or the negative thereof or other similar words, although not all forward-looking statements contain these words. Investors should consider the information contained in our submissions and filings with the United States Securities and Exchange Commission (the “SEC”), including our annual report for the fiscal year ended December 31, 2023 on Form 20-F, together with such other documents that we may submit to or file with the SEC from time to time, on Form 6-K. The forward-looking statements speak only as of this press release and we assume no duty to update them to reflect new, changing or unanticipated events or circumstances.

    Contact:

    Mr. Heung Gon Kim
    Chief Financial Officer
    Gravity Co., Ltd.
    Email: kheung@gravity.co.kr

    Ms. Jin Lee
    Ms. Shin Choi
    IR Unit
    Gravity Co., Ltd.
    Email: ir@gravity.co.kr
    Telephone: +82-2-2132-7800

    #     #     #

    GRAVITY Co., Ltd.
    Consolidated Statements of Financial Position

    (In millions of KRW and thousands of US$)

      As of
      31-Dec-23  31-Mar-24 
      KRW  US$  KRW  US$ 
      (audited)  (unaudited)  (unaudited)  (unaudited) 
    Assets                
    Current assets:                
    Cash and cash equivalents           184,082         136,653         164,271         121,946  
    Short-term financial instruments           277,215         205,790         320,255         237,740  
    Accounts receivable, net             71,213           52,865           64,138           47,613  
    Other receivables, net               3,637             2,700             3,960             2,940  
    Prepaid expenses               2,994             2,223             3,085             2,290  
    Other current financial assets               4,439             3,295             5,440             4,038  
    Other current assets               3,319             2,464             4,569             3,392  
    Total current assets           546,899         405,990         565,718         419,959  
    Property and equipment, net             10,151             7,536             8,865             6,581  
    Intangible assets, net               6,370             4,729             6,164             4,576  
    Deferred tax assets               5,952             4,418             5,759             4,275  
    Other non-current financial assets               1,824             1,354             1,736             1,289  
    Other non-current assets               6,985             5,185             7,999             5,938  
    Total assets           578,181         429,212         596,241         442,618  
    Liabilities and Equity                
    Current liabilities:                
    Accounts payable             61,778           45,861           53,904           40,015  
    Deferred revenue             18,093           13,431           16,665           12,371  
    Withholdings               3,072             2,280             2,849             2,115  
    Accrued expense               2,313             1,717             1,811             1,344  
    Income tax payable             16,927           12,566           16,897           12,543  
    Other current liabilities               4,251             3,156             3,783             2,810  
    Total current liabilities           106,434           79,011           95,909           71,198  
    Long-term account payables                   677                 503                 678                 503  
    Long-term deferred revenue               1,785             1,325             1,764             1,309  
    Other non-current liabilities               3,175             2,358             2,659             1,974  
    Deferred tax liabilities               2,382             1,768             2,382             1,769  
    Total liabilities           114,453           84,965         103,392           76,753  
    Share capital               3,474             2,579             3,474             2,579  
    Capital surplus             27,098           20,116           27,085           20,106  
    Other components of equity               4,016             2,981             6,261             4,647  
    Retained earnings           428,499         318,095         455,365         338,039  
    Equity attributable to owners of the Parent Company           463,087         343,771         492,185         365,371  
    Non-controlling interest                   641                 476                 664                 494  
    Total equity           463,728         344,247         492,849         365,865  
    Total liabilities and equity           578,181         429,212         596,241         442,618  

    * For convenience purposes only, the KRW amounts are expressed in U.S. dollars at the rate of KRW 1,347.08 to US$ 1.00, the noon buying rate in effect on March 29, 2024 as quoted by the Federal Reserve Bank of New York.

    GRAVITY Co., Ltd.
    Consolidated Statements of Comprehensive Income

    (In millions of KRW and thousands of US$ except for share and ADS data)

      Three months ended
      31-Dec-23  31-Mar-23  31-Mar-24
      (KRW) (US$)  (KRW) (US$)  (KRW) (US$)
      (unaudited) (unaudited)  (unaudited) (unaudited)  (unaudited) (unaudited)
    Revenues:              
    Online games 23,980 17,801  22,696  16,848  18,065  13,410
    Mobile games 116,456 86,451  138,994  103,182  98,548  73,157
    Other revenue 5,094 3,782  3,257  2,418  3,166  2,350
    Total net revenue 145,530 108,034  164,947  122,448  119,779  88,917
    Cost of revenue 93,330 69,283  105,485  78,306  73,628  54,657
    Gross profit 52,200 38,751  59,462  44,142  46,151  34,260
    Operating expenses:              
    Selling, general and administrative expenses 20,576 15,275  13,271  9,852  15,747  11,690
    Research and development 3,748 2,782  2,922  2,169  3,601  2,673
    Others, net 1,445  1,073   (49) (36)  (66) (49)
    Total operating expenses 25,769 19,130  16,144  11,985  19,282  14,314
    Operating profit 26,431 19,621  43,318  32,157  26,869  19,946
    Finance income(costs):              
    Finance income 6,534  4,850   5,461  4,054  6,297  4,675
    Finance costs              (6,797)          (5,046)               (2,553)         (1,895)                   (668)             (496)
    Profit before income tax 26,168 19,425  46,226  34,316  32,498  24,125
    Income tax expense 4,625 3,433  9,799  7,274  5,615  4,168
    Profit for the year 21,543 15,992  36,427  27,042  26,883  19,957
    Profit attributable to:              
    Non-controlling interest                    (33)               (24)                     (39)               (29)                       17                  13
    Owners of Parent company 21,576 16,016  36,466  27,071  26,866  19,944
    Earning per share              
    - Basic and diluted 3,105  2.30   5,248  3.90  3,866  2.87
    Weighted average number of shares outstanding              
    - Basic and diluted 6,948,900  6,948,900   6,948,900  6,948,900  6,948,900  6,948,900
    Earning per ADS              
    - Basic and diluted 3,105  2.30   5,248  3.90  3,866  2.87

    * For convenience, the KRW amounts are expressed in U.S. dollars at the rate of KRW 1,347.08 to US$1.00, the noon buying rate in effect on March 29, 2024 as quoted by the Federal Reserve Bank of New York.
    (1) Each ADS represents one common share.


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