Gravity Co., Ltd. Achieves Revenue Growth Amid Challenges
Gravity Reports Positive Financial Results for Q2 2025
Gravity Co., Ltd. (Nasdaq: GRVY), a prominent player in the online and mobile gaming sector, has disclosed its financial performance for the second quarter of 2025. Despite facing some declines in certain profit metrics, the company demonstrated robust growth in revenue, signaling a positive trajectory for its operations.
Second Quarter 2025 Financial Highlights
Overall Performance
- Total revenues hit KRW 170,740 million (approximately US$126,147 thousand), showcasing a remarkable 24.2% rise compared to the previous quarter and a healthy year-over-year increase of 38.9%.
- The operating profit stood at KRW 19,670 million (about US$14,533 thousand), reflecting a decrease of 20.5% quarter-over-quarter but a substantial year-over-year increase of 31.2%.
- Profit before income tax was recorded at KRW 18,706 million (US$13,821 thousand), down 34.2% from the last quarter and down 6.7% year-over-year.
- Net profit attributable to the parent company decreased to KRW 13,245 million (US$9,786 thousand), representing a 39.9% decline from the previous quarter yet a 5.4% rise from the same quarter last year.
Revenue Analysis by Segment
Online and Mobile Game Performance
During Q2 2025, online game revenues reached KRW 21,971 million (approximately US$16,233 thousand), marking a 16.8% gain from the last quarter and a 13.0% increase from the same period in 2024. This growth can largely be attributed to the recent launch of Ragnarok Online America Latina in Latin America.
Mobile game revenues soared to KRW 144,003 million (US$106,393 thousand), reflecting an impressive 24.7% rise quarter-over-quarter and a significant 45.4% increase year-over-year. The success stems from recent releases such as Ragnarok M: Classic and Ragnarok X: Next Generation, which contributed greatly to higher earnings.
Operational Cost Insights
Gravity's cost of revenue stood at KRW 114,006 million (US$84,231 thousand), a 30.4% increase from the previous quarter and a 50.0% increase from the same quarter last year. This sharp rise reflects the commissions paid for new mobile services linked to popular titles.
Operating Expenses and Overall Financial Health
Operating expenses reached KRW 37,064 million (US$27,383 thousand), which shows a 46.6% rise from the previous quarter and a 15.9% increase from the prior year's second quarter. The uptick largely results from increased advertising investment for their newly launched games.
As a vital part of maintaining operational activities, Gravity has reported a solid liquidity position, with cash and equivalents amounting to KRW 576,840 million (US$426,184 thousand) as of the end of the reporting period.
Future Business Developments
Gravity remains committed to expanding its gaming portfolio, with several upcoming releases that include:
- Ragnarok: The Promised Adventure, planned for release in China.
- Ragnarok X: Next Generation, expanding into new international markets.
- Ragnarok Idle Adventure Plus, set to launch in Korea.
The company continues to explore innovative concepts, including blockchain integration through titles like Ragnarok Landverse, which positions them favorably within the evolving gaming landscape.
Contact Information
For additional inquiries, interested parties may reach out to Gravity Co., Ltd.'s Investor Relations team:
Mr. Heung Gon Kim
Chief Financial Officer
Email: kheung@gravity.co.kr
Telephone: +82-2-2132-7800
Frequently Asked Questions
What is the main source of revenue for Gravity Co., Ltd.?
Gravity Co., Ltd. generates significant revenue from online and mobile gaming, particularly through its Ragnarok franchise.
How did Gravity perform in the second quarter of 2025?
The company reported total revenues of KRW 170,740 million, a 24.2% increase from the previous quarter and a 38.9% increase compared to the same quarter last year.
What are the future plans for Gravity's game releases?
Gravity has several upcoming launches planned, including Ragnarok: The Promised Adventure for China and expansions for Ragnarok X: Next Generation.
Who can be contacted for more information about Gravity?
Inquiries can be directed to Mr. Heung Gon Kim, Chief Financial Officer, via email at kheung@gravity.co.kr.
What is the status of Gravity's liquidity?
Gravity maintains a strong liquidity position with cash and equivalents amounting to KRW 576,840 million as of the end of June 2025.
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