Mobile Games Developer GRAVITY Reports Q2 Financial Results

GRAVITY (NASDAQ:GRVY), a South Korea-based mobile game developer announced a 41.5 percent decline in year-over-year revenues for its second quarter 2019 financial results. While subscription revenues, mainly from Ragnarok Online increased 7.8 percent compared to the same time period last year, mobile games revenue dropped by 45.1 percent.

As quoted in the press release:

Subscription revenues for the second quarter of 2019 were KRW 6,746 million (US$ 5,843 thousand), representing a 7.8 % increase QoQ from KRW 6,256 million and a 10.3% increase YoY from KRW 6,116 million. The increase QoQ was mainly attributable to increased revenue from Ragnarok Online in Taiwan. The increase YoY was largely due to increased revenues from Ragnarok online in Taiwan and Korea. Such increase was partially offset by decreased revenue from Ragnarok Prequel in Taiwan.

Royalty and license fee revenues for the second quarter of 2019 were KRW 2,832 million (US$ 2,452 thousand), representing a 23.9% decrease QoQ from KRW 3,720 million and a 11.7% decrease YoY from KRW 3,209 million. The decrease QoQ was primarily due to decreased revenue from Ragnarok Online in Japan. The decrease YoY resulted mainly from decreased revenues from Ragnarok Online in Thailand and Brazil.

Click here to read the full press release.