Gravity(GRVY) - 2025 Q2 - Quarterly Report

Revenue Performance - Online game revenues for Q2 2025 were KRW 21,971 million (US$ 16,233 thousand), a 16.8% increase QoQ and a 13.0% increase YoY, driven by the launch of Ragnarok Online America Latina[5] - Mobile game revenues reached KRW 144,003 million (US$ 106,393 thousand) in Q2 2025, reflecting a 24.7% increase QoQ and a 45.4% increase YoY, attributed to new game launches in various regions[6] - Total revenues for Q2 2025 were KRW 170,740 million (US$ 126,147 thousand), representing a 24.2% increase QoQ and a 38.9% increase YoY[8] - Total net revenue for the six months ended June 30, 2025, increased to KRW 308,204 million, up 27% from KRW 242,746 million for the same period in 2024[26] - Mobile games revenue for the three months ended June 30, 2025, reached KRW 144,003 million, a 45% increase compared to KRW 99,019 million in the same period last year[26] Profitability - Operating profit for Q2 2025 was KRW 19,670 million (US$ 14,533 thousand), a 20.5% decrease QoQ but a 31.2% increase YoY[8] - Operating profit for the three months ended June 30, 2025, was KRW 19,670 million, a 31% increase from KRW 14,989 million in the same period last year[26] - Net profit attributable to the parent company was KRW 13,245 million (US$ 9,786 thousand) for Q2 2025, a 39.9% decrease QoQ but a 5.4% increase YoY[12] - Profit for the year for the six months ended June 30, 2025, was KRW 35,298 million, down 10% from KRW 39,464 million for the same period in 2024[26] Operating Expenses - Operating expenses increased to KRW 37,064 million (US$ 27,383 thousand) in Q2 2025, a 46.6% increase QoQ and a 15.9% increase YoY, primarily due to higher advertising costs[10] Cash and Assets - The cash and cash equivalents balance was KRW 576,840 million (US$ 426,184 thousand) as of June 30, 2025[13] - Total current assets as of June 30, 2025, were KRW 686,658 million, a slight increase from KRW 653,610 million as of December 31, 2024[23] Liabilities and Equity - Total liabilities as of June 30, 2025, were KRW 126,047 million, up from KRW 118,096 million as of December 31, 2024[23] - Total equity attributable to owners of the Parent Company as of June 30, 2025, was KRW 595,755 million, an increase from KRW 567,672 million as of December 31, 2024[23] Upcoming Game Launches - Ragnarok: The Promised Adventure is set to launch in China on October 1, 2025, following its ISBN approval[14] - Ragnarok X: Next Generation will expand to Europe, the Middle East, Africa, and South Asia in October 2025 after its initial launch in May 2025[14] - Ragnarok M: Classic is scheduled for launch in North and South America, Europe, Middle East, and Africa on September 3, 2025[14] Earnings Per Share - Earnings per share for the three months ended June 30, 2025, was KRW 1,906, compared to KRW 1,809 for the same period in 2024[26] Finance Income - The company reported a finance income of KRW 2,651 million for the three months ended June 30, 2025, down from KRW 8,867 million in the same period last year[26]