Gravity Reports Second Quarter of 2025 Results and Business Update

Core Insights - Gravity Co., Ltd. reported its unaudited financial results for Q2 2025, showing significant growth in revenues driven by new game launches and expansions in various markets [1][2]. Financial Performance - Total revenues for Q2 2025 reached KRW 170,740 million (US$ 126,147 thousand), marking a 24.2% increase QoQ and a 38.9% increase YoY [9]. - Online game revenues were KRW 21,971 million (US$ 16,233 thousand), up 16.8% QoQ and 13.0% YoY, primarily due to the launch of Ragnarok Online America Latina [3]. - Mobile game revenues surged to KRW 144,003 million (US$ 106,393 thousand), reflecting a 24.7% increase QoQ and a 45.4% increase YoY, driven by new titles like Ragnarok M: Classic and Ragnarok X: Next Generation [4]. - Other revenues increased to KRW 4,766 million (US$ 3,521 thousand), a 50.3% increase QoQ and 5.8% increase YoY [5]. Cost and Expenses - Cost of revenue for Q2 2025 was KRW 114,006 million (US$ 84,231 thousand), representing a 30.4% increase QoQ and a 50.0% increase YoY, mainly due to commissions for mobile game services [6]. - Operating expenses rose to KRW 37,064 million (US$ 27,383 thousand), a 46.6% increase QoQ and 15.9% increase YoY, largely due to increased advertising expenses for new game launches [7]. Profitability - Operating profit for Q2 2025 was KRW 19,670 million (US$ 14,533 thousand), down 20.5% QoQ but up 31.2% YoY [9]. - Profit before income tax expense was KRW 18,706 million (US$ 13,821 thousand), a decrease of 34.2% QoQ and 6.7% YoY [9]. - Net profit attributable to the parent company was KRW 13,245 million (US$ 9,786 thousand), down 39.9% QoQ but up 5.4% YoY [10]. Liquidity - As of June 30, 2025, the company had cash and cash equivalents totaling KRW 576,840 million (US$ 426,184 thousand) [11]. Business Updates - Several new games were launched or are scheduled for launch, including Ragnarok: The Promised Adventure in China on October 1, 2025, and Ragnarok M: Classic in North and South America on September 3, 2025 [12][13]. - The company continues to expand its game portfolio with various titles across different regions, indicating a strong growth strategy [12][15].