Gravity Reports Second Quarter of 2024 Results and Business Update

Core Viewpoint - Gravity Co., Ltd. reported a significant decline in financial performance for the second quarter of 2024, with total revenues decreasing by 48.5% year-over-year, while online game revenues showed some growth due to specific titles in Thailand [2][3][4]. Financial Results Summary - Total revenues for Q2 2024 were KRW 122,967 million (US$ 89,330 thousand), a 2.7% increase quarter-over-quarter but a 48.5% decrease year-over-year [2]. - Operating profit was KRW 14,989 million (US$ 10,889 thousand), reflecting a 44.2% decrease QoQ and a 71.6% decrease YoY [2]. - Profit before income tax expenses was KRW 20,057 million (US$ 14,570 thousand), down 38.3% QoQ and 63.6% YoY [2]. - Net profit attributable to the parent company was KRW 12,569 million (US$ 9,131 thousand), a 53.2% decrease QoQ and a 72.1% decrease YoY [2][9]. Revenue Breakdown - Online game revenues for Q2 2024 were KRW 19,445 million (US$ 14,126 thousand), a 7.6% increase QoQ and a 14.2% increase YoY, primarily driven by Ragnarok Online in Thailand [3]. - Mobile game revenues were KRW 99,019 million (US$ 71,933 thousand), a 0.5% increase QoQ but a 54.7% decrease YoY, with growth from Ragnarok Origin in the Americas offset by declines in Southeast Asia [4]. - Other revenues increased to KRW 4,503 million (US$ 3,271 thousand), a 42.2% increase QoQ and a 41.5% increase YoY [5]. Cost and Expenses - Cost of revenue was KRW 76,006 million (US$ 55,215 thousand), a 3.2% increase QoQ and a 54.8% decrease YoY [6]. - Operating expenses rose to KRW 31,972 million (US$ 23,226 thousand), a 65.8% increase QoQ and a 78.8% increase YoY, mainly due to higher advertising expenses [7]. Business Updates - Ragnarok Online was officially launched in China on June 28, 2024, and Ragnarok X: Next Generation is set to launch in China on September 13, 2024 [11]. - Ragnarok Origin is preparing for its launch in Europe, while THE RAGNAROK (Ragnarok: Novice Hearts) was launched in Taiwan, Hong Kong, and Macau on June 6, 2024 [12]. - The company is expanding its Ragnarok IP business with new game launches and a golf brand based on Ragnarok characters [15].