Gravity Reports Second Quarter of 2020 Results and Business Updates Nasdaq:GRVY

Gravity Reports Second Quarter of 2020 Results and Business Updates Nasdaq:GRVY

Seoul, Aug. 07, 2020 (GLOBE NEWSWIRE) — GRAVITY Co., Ltd. (NasdaqGM: GRVY) (“Gravity” or “Firm”), a developer and writer of on-line and cellular video games based mostly in South Korea, at this time introduced its unaudited monetary outcomes for the second quarter ended June 30, 2020, ready in accordance with Worldwide Monetary Reporting Requirements as issued by the Worldwide Accounting Requirements Board and enterprise updates.

SECOND QUARTER 2020 HIGHLIGHTS

  • Complete revenues have been KRW 88,458 million (US$ 73,684 thousand), representing a 20.7% improve from the primary quarter ended March 31, 2020 (“QoQ”) and a 13.2% improve from the second quarter ended June 30, 2019 (“YoY”).
  • Working revenue was KRW 16,313 million (US$ 13,588 thousand), representing a 57.5% improve QoQ and a 25.5% improve YoY.
  • Revenue earlier than revenue tax bills was KRW 16,335million (US$ 13,606 thousand), representing a 45.2% improve QoQ and a 16.four% improve YoY.
  • Web revenue attributable to guardian firm was KRW 13,095 million (US$ 10,907 thousand), representing a 41.four% improve QoQ and a 20.6% improve YoY.

REVIEW OF SECOND QUARTER 2020 FINANCIAL RESULTS

Revenues

Subscription revenues for the second quarter of 2020 have been KRW 24,448 million (US$ 20,365 thousand), representing a 147.1% improve QoQ from KRW 9,893 million and a 262.four% improve YoY from KRW 6,746 million. The rise QoQ was primarily attributable to elevated revenues from Ragnarok On-line in Thailand that was re-launched on Could 28, 2020 and Ragnarok H5 in Indonesia that was launched on March 31, 2020. The rise YoY was largely resulting from elevated revenues from Ragnarok On-line in Thailand and Taiwan and Ragnarok H5 in Indonesia.

Royalty and license payment revenues for the second quarter of 2020 have been KRW four,459 million (US$ three,714 thousand), representing 25.9% improve QoQ from KRW three,543 million and a 57.5% improve YoY from KRW 2,832 million. The rise QoQ was primarily resulting from elevated income from collaboration occasion with Garena’s Free Hearth gadgets based mostly on Ragnarok On-line IP. Such improve was partially offset by decreased income from Ragnarok On-line in Japan. The rise YoY resulted primarily from elevated income from collaboration occasion with Garena’s Free Hearth gadgets based mostly on Ragnarok On-line IP.

Cell recreation revenues have been KRW 54,249 million (US$ 45,189 thousand) for the second quarter of 2020, representing a three.1% lower QoQ from KRW 55,982 million and a 16.6% lower YoY from KRW 65,zero13 million. The lower QoQ resulted primarily from decreased revenues from Ragnarok M: Everlasting Love in Taiwan and Japan, and Ragnarok Ways in Taiwan. Such lower was partially offset by elevated revenues from Ragnarook M: Everlasting Love in Southeast Asia, Ragnarok H5 in Indonesia, and Ragnarok Ways in Korea. The lower YoY was primarily resulting from revenues from Ragnarok M: Everlasting Love in Southeast Asia, North America, South America and Oceania. This lower was partially offset by elevated revenues from Ragnarok M: Everlasting Love in Taiwan and Europe, Ragnarok Ways in Korea and Taiwan, and Ragnarok H5 in Indonesia.

Different revenues have been KRW 5,302 million (US$ four,416 thousand) for the second quarter of 2020, representing 38.zero% improve QoQ from KRW three,842 million and a 49.9% improve YoY from KRW three,536 million

Value of Revenues

Value of income was KRW 51,zero98 million (US$ 42,564 thousand) for the second quarter of 2020, representing a four.6% improve QoQ from KRW 48,874 million and a 10.1% lower YoY from KRW 56,858 million. The rise QoQ was primarily resulting from elevated fee paid for cellular recreation companies associated to Ragnarok M: Everlasting love in Southeast Asia, North America, South America and Oceania, Ragnarok H5 in Indonesia, and Ragnarok Ways in Korea. The lower YoY was principally from decreased fee paid for cellular recreation companies associated to Ragnarok M: Everlasting love in Southeast Asia, North America, South America and Oceania.

Working Bills

Working bills have been KRW 21,zero47 million (US$ 17,532 thousand) for the second quarter of 2020, representing a 50.zero% improve QoQ from KRW 14,zero30 million and a 154.5% improve YoY from KRW eight,271 million. The rise QoQ was primarily attributable to elevated promoting bills for Ragnarok Origin in Korea, Ragnarok On-line in Thailand, Sacred Blade in Japan, Ragnarok H5 in Indonesia, and fee paid for cost gate approach charges associated to Ragnarok On-line in Thailand. The rise YoY was principally resulted from elevated promoting bills for Ragnarok Origin and Ragnarok Ways in Korea, Ragnarok On-line in Thailand, Sacred Blade in Japan, Ragnarok H5 in Indonesia, fee paid for cost gate approach charges associated to Ragnarok On-line in Thailand, salaries and analysis and growth bills.

Revenue earlier than revenue tax bills

Revenue earlier than revenue tax bills was KRW 16,335 million (US$ 13,606 thousand) for the second quarter of 2020 in contrast with revenue earlier than revenue tax expense of KRW 11,250 million for the primary quarter of 2020 and revenue earlier than revenue tax bills of KRW 14,zero37 million for the second quarter of 2019.

Web Revenue

Because of the foregoing elements, Gravity recorded a internet revenue attributable to guardian firm of KRW 13,095 million (US$ 10,907 thousand) for the second quarter of 2020 in contrast with internet revenue attributable to guardian firm of KRW 9,263 million for the primary quarter of 2020 and a internet revenue attributable to guardian firm of KRW 10,861 million for the second quarter of 2019.

Liquidity

The steadiness of money and money equivalents and short-term monetary devices was KRW 131,566 million (US$ 109,593 thousand) as of June 30, 2020.

Notice: For comfort functions solely, the KRW quantities have been expressed in U.S. dollars on the change charge of KRW 1,200.50 to US$ 1.00, the midday shopping for charge in impact on June 30, 2020 as quoted by the Federal Reserve Financial institution of New York.

GRAVITY BUSINESS UPDATE

Ragnarok On-line IP-based Video games

  • Ragnarok Origin, a MMORPG cellular recreation

Ragnarok Origin was launched in Korea on July 7, 2020 and ranked because the fourth in high grossing of Google Play video games and the fourth in high grossing of Apple’s App Retailer video games after its launching. Gravity signed a publishing contract with GungHo On-line Leisure, Inc. for Japan service. The sport is being ready to launch in Japan.

  • Ragnarok X: Subsequent Era, a MMORPG cellular recreation

Gravity signed a joint publishing contract with ByteDance Ltd., a multinational content material platform firm, for Ragnarok X: Subsequent Era in Taiwan, Hong Kong, Macau, and Southeast Asia. The sport is anticipated to be launched in Taiwan, Hong Kong and Macau within the second half of 2020.

  • Ragnarok Ways, a SRPG cellular recreation

Ragnarok Ways was launched in world market on June 18, 2020.

  • Different Ragnarok On-line IP-based video games

Motion RO2: Spear of Odin, a 3D Motion MORPG cellular recreation, is anticipated to be launched in Indonesia, Malaysia, Philippines, Singapore and Oceania in 2020. The sport was developed by NeoCyon, Inc., our subsidiary in Korea.

Different IP video games

Tactical Warfare, a First-Particular person Shooter (FPS) recreation, has began pre-registration and shall be launched in North, Central and South America within the third quarter of 2020. The sport is printed by Gravity Interactive, Inc., a subsidiary in the US.

Investor Presentation

Gravity issued an investor presentation. The presentation accommodates the Firm’s latest enterprise updates, outcomes of second quarter in 2020 and Gravity’s marketing strategy. The presentation will be discovered on the Firm’s web site below the IR Archives part at http://www.gravity.co.kr/en/ir/pds/checklist.asp. Korean and Japanese variations of the presentation are additionally offered on the web site.

About GRAVITY Co., Ltd. —————————————————

Primarily based in Korea, Gravity is a developer and writer of on-line and cellular video games. Gravity’s principal product, Ragnarok On-line, is a well-liked on-line recreation in lots of markets, together with Japan and Taiwan, and is presently commercially supplied in 93 markets and nations. For extra details about Gravity, please go to http://www.gravity.co.kr.

Ahead-Wanting Statements:

Sure statements on this press launch might embrace, along with historic info, “forward-looking statements” throughout the that means of the “safe-harbor” provisions of the U.S. Non-public Securities Litigation Reform Act 1995. Ahead-looking statements can typically be recognized by way of forward-looking terminology, equivalent to “might,” “will,” “anticipate,” “intend,” “estimate,” “anticipate,” “imagine”, “venture,” or “proceed” or the damaging thereof or different comparable phrases, though not all forward-looking statements comprise these phrases. Buyers ought to think about the knowledge contained in our submissions and filings with the US Securities and Alternate Fee (the “SEC”), together with our annual report for the fiscal 12 months ended December 31, 2019 on Kind 20-F, along with such different paperwork that we might undergo or file with the SEC now and again, on Kind 6-Ok. The forward-looking statements communicate solely as of this press launch and we assume no responsibility to replace them to mirror new, altering or unanticipated occasions or circumstances.

Contact:

Mr. Heung Gon Kim
Chief Monetary Officer
Gravity Co., Ltd.
E-mail: kheung@gravity.co.kr

Ms. Jin Lee
Ms. Minji Oh
IR Unit
Gravity Co., Ltd.
E-mail: ir@gravity.co.kr
Phone: +82-2-2132-7800

#     #     #

GRAVITY Co., Ltd.
Consolidated Statements of Monetary Place

(In tens of millions of KRW and 1000’s of US$)

    As of  
    31-Dec-19     30-Jun-20  
    KRW     US$     KRW     US$  
    (audited)     (unaudited)     (unaudited)     (unaudited)  
Belongings                                
Present property:                                
Money and money equivalents     79,428       66,162       94,066       78,356  
Brief-term monetary devices     39,500       32,903       37,500       31,237  
Accounts receivable, internet     32,253       26,866       48,910       40,741  
Different receivables, internet     56       47       265       221  
Pay as you go bills     1,962       1,634       2,892       2,409  
Different present property     2,664       2,219       2,558       2,131  
Complete present property     155,863       129,831       186,191       155,095  
Property and gear, internet     6,663       5,550       7,893       6,575  
Intangible property     1,717       1,430       1,899       1,582  
Deferred tax property     7,667       6,387       10,246       eight,535  
Different non-current monetary property     1,770       1,474       1,785       1,487  
Different non-current property     1,745       1,454       2,zero50       1,707  
Complete property     175,425       146,126       210,064       174,981  
Liabilities and Fairness                                
Present liabilities:                                
Accounts payable     37,496       31,234       43,914       36,580  
Deferred income     10,748       eight,953       12,834       10,691  
Withholdings     1,764       1,469       2,366       1,971  
Accrued expense     1,175       979       1,185       987  
Revenue tax payable     2,618       2,181       2,577       2,147  
Different present liabilities     1,986       1,654       2,788       2,322  
Complete present liabilities     55,787       46,470       65,664       54,698  
Lengthy-term deferred income     98       82       343       286  
Different non-current liabilities     three,774       three,143       four,zero58       three,380  
Complete liabilities     59,659       49,695       70,zero65       58,364  
Share capital     three,474       2,894       three,474       2,894  
Capital surplus     27,128       22,597       27,110       22,582  
Different elements of fairness     274       228       1,875       1,562  
Retained earnings     84,668       70,527       107,zero26       89,151  
Fairness attributable to homeowners of the Father or mother Firm     115,544       96,246       139,485       116,189  
Non-controlling curiosity     222       185       514       428  
Complete fairness     115,766       96,431       139,999       116,617  
Complete liabilities and fairness     175,425       146,126       210,064       174,981  

* For comfort functions solely, the KRW quantities are expressed in U.S. dollars on the charge of KRW 1,200.50 to US$ 1.00, the midday shopping for charge in impact on June 30, 2020 as quoted by the Federal Reserve Financial institution of New York.

GRAVITY Co., Ltd.
Consolidated Statements of Complete Revenue

(In tens of millions of KRW and 1000’s of US$ aside from share and ADS knowledge)

    Three months ended     Six months ended    
    31-Mar-20     30-Jun-19     30-Jun-20     30-Jun-19     30-Jun-20    
    (KRW)     (KRW)     (KRW)     (US$)     (KRW)     (KRW)     (US$)  
    (unaudited)     (unaudited)     (unaudited)     (unaudited)     (unaudited)     (unaudited)     (unaudited)  
Revenues:                                                        
On-line games-subscription income     9,893       6,746       24,448       20,365       13,002       34,341       28,606  
On-line games-royalties and license charges     three,543       2,832       four,459       three,714       6,552       eight,002       6,666  
Cell video games     55,982       65,zero13       54,249       45,189       185,103       110,231       91,821  
Different income     three,842       three,536       5,302       four,416       7,093       9,144       7,616  
Complete internet income     73,260       78,127       88,458       73,684       211,750       161,718       134,709  
Value of revenues     48,874       56,858       51,zero98       42,564       158,095       99,972       83,275  
Gross revenue     24,386       21,269       37,360       31,120       53,655       61,746       51,434  
Working bills:                                                        
Promoting, normal and administrative bills     11,zero07       5,733       17,643       14,696       12,398       28,650       23,865  
Analysis and growth     2,872       2,432       three,254       2,711       four,309       6,126       5,103  
Others, internet     151       106       150       125       310       301       251  
Complete working bills     14,zero30       eight,271       21,zero47       17,532       17,zero17       35,077       29,219  
Working revenue     10,356       12,998       16,313       13,588       36,638       26,669       22,215  
Finance revenue(prices):                                                        
Finance revenue     1,551       1,141       627       522       2,203       2,178       1,814  
Finance prices     (657 )     (102 )     (605 )     (504 )     (415 )     (1,262 )     (1,zero51 )
Revenue earlier than revenue tax     11,250       14,zero37       16,335       13,606       38,426       27,585       22,978  
Revenue tax bills     2,004       three,208       three,293       2,743       7,835       5,297       four,412  
Revenue for the 12 months     9,246       10,829       13,zero42       10,863       30,591       22,288       18,566  
Revenue attributable to:                                                        
Non-controlling curiosity     (17 )     (32 )     (53 )     (44 )     (30 )     (70 )     (58 )
House owners of Father or mother firm     9,263       10,861       13,095       10,907       30,621       22,358       18,624  
Incomes per share                                                        
– Fundamental and diluted     1,333       1,563       1,884       1.6       four,407       three,217       2.7  
Weighted common variety of shares excellent                                                        
– Fundamental and diluted     6,948,900       6,948,900       6,948,900       6,948,900       6,948,900       6,948,900       6,948,900  
Incomes per ADS(1)                                                        
– Fundamental and diluted     1,333       1,563       1,884       1.6       four,407       three,217       2.7  

* For comfort, the KRW quantities are expressed in U.S. dollars on the charge of KRW 1,200.50 to US$1.00, the midday shopping for charge in impact on June 30, 2020 as quoted by the Federal Reserve Financial institution of New York.
(1) Every ADS represents one frequent share.

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