SEOUL, South Korea,
May 27, 2015 /PRNewswire/ -- GRAVITY
Co., Ltd. (NasdaqCM: GRVY) ("Gravity" or "Company"), an
online and mobile game developer, operator and publisher based in
South Korea, today announced its
unaudited financial results for the first quarter ended
March 31, 2015, prepared in
accordance with generally accepted accounting principles in
the United States.
FINANCIAL RESULTS FOR THE FIRST
QUARTER OF 2015
Revenues for the first quarter ended March 31, 2015 was KRW
9,069 million (US$ 8,187
thousand), representing a 2.8% decrease from KRW 9,330 million for the fourth quarter ended
December 31, 2014 ("QoQ") and a 15.8%
decrease from KRW 10,767 million for
the first quarter ended March 31,
2014 ("YoY").
Review of Financial Results
Revenues
Mobile game and application revenues were KRW 4,203 million (US$
3,794 thousand) for the first quarter of 2015, representing
a 26.5% increase QoQ from KRW 3,322
million and a 2.6% decrease YoY from KRW 4,317 million. The increase QoQ resulted
primarily from increased revenues from mobile applications for a
third party and Ragnarok Online—Uprising: Valkyrie. The decrease
YoY was mainly driven by decreased revenues from mobile game
operation service for a third party and decreased revenues from
Road to Dragons.
Royalty and license fee revenues for the first quarter of 2015
were KRW 2,512 million (US$ 2,268 thousand), representing a 13.2%
decrease QoQ from KRW 2,895 million
and a 29.7% decrease YoY from KRW 3,575
million. The decrease QoQ was primarily due to
decreased revenue from Ragnarok Online in Japan. The decrease YoY resulted mainly from
decrease revenue from Ragnarok Online in Japan and the strengthening of the Korean Won
against the Japanese Yen.
Subscription revenues for the first quarter of 2015 were
KRW 1,698 million (US$ 1,533 thousand), representing a 26.9%
decrease QoQ from KRW 2,322 million
and a 10.2% decrease YoY from KRW 1,890
million. The decrease QoQ was mainly attributable to a
decrease in revenues from Ragnarok Online in Korea and to
decreased revenues from Ragnarok Online and
Ragnarok Online II in the United
States and Canada. The
decrease YoY was largely due to decreased revenues from online
games, including Ragnarok Online and Ragnarok Online
II in the United States and
Canada.
Character merchandising and other revenues were KRW 656 million (US$ 592
thousand) for the first quarter 2015, representing a 17.1%
decrease QoQ from KRW 791 million and
a 33.4% decrease YoY from KRW 985
million.
Cost of Revenue and Operating Expenses
Cost of revenue was KRW 7,676
million (US$ 6,930 thousand)
for the first quarter of 2015, representing a 4.4% decrease QoQ
from KRW 8,031 million and a 18.9%
decrease YoY from KRW 9,467 million.
The decrease QoQ was mostly from decreased outsourcing fee and
depreciation expenses. The decrease YoY was mainly attributable to
decreased salaries and severance benefits.
Operating expenses were KRW 3,952
million (US$ 3,567 thousand)
for the first quarter of 2015, representing a 14.8% decrease QoQ
from KRW 4,639 million and a 5.4%
decrease YoY from KRW 4,178 million.
The decrease QoQ was mainly due to decreased commission paid and
R&D expense. The decrease YoY was mostly resulted from
decreased salaries and advertising expense.
Loss before income tax expenses and others was KRW 2,355 million (US$
2,126 thousand) for the first quarter of 2015 compared with
loss before income tax expenses and others of KRW 3,007 million for the fourth quarter of 2014
and loss before income tax expenses and others of KRW 2,503 million for the first quarter of
2014.
As a result of the foregoing factors, Gravity recorded a net
loss attributable to parent company of KRW
2,628 million (US$ 2,372
thousand) for the first quarter of 2015 compared with a net
loss attributable to parent company of KRW
11,871 million for the fourth quarter of 2014 and a net loss
attributable to parent company of KRW 2,969
million for the first quarter of 2014.
The balance of cash and cash equivalents and short-term
financial instruments was KRW 42,694
million (US$ 38,543 thousand)
as of March 31, 2015.
Note: For convenience purposes only, the KRW amounts have been
expressed in U.S. dollars at the exchange rate of KRW 1,107.71 to US$
1.00, the noon buying rate in effect on March 31, 2015 as quoted by the Federal Reserve
Bank of New York.
About GRAVITY Co., Ltd.
Based in Korea, Gravity is a developer and publisher of online
games and mobile games. Gravity's principal product, Ragnarok
Online, is a popular online game in many markets, including
Japan, Taiwan and Thailand, and is currently commercially
offered in 71 markets and countries. For more information
about Gravity, please visit http://www.gravity.co.kr.
Forward-Looking Statements:
Certain statements in this press release may include, in
addition to historical information, "forward-looking statements"
within the meaning of the "safe-harbor" provisions of the U.S.
Private Securities Litigation Reform Act 1995. Forward-looking
statements can generally be identified by the use of
forward-looking terminology, such as "may," "will," "expect,"
"intend," "estimate," "anticipate," "believe" "project," or
"continue" or the negative thereof or other similar words, although
not all forward-looking statements contain these words. Investors
should consider the information contained in our submissions and
filings with the United States Securities and Exchange Commission
(the "SEC"), including our annual report for the fiscal year ended
December 31, 2014 on Form 20-F,
together with such other documents that we may submit to or file
with the SEC from time to time, on Form 6-K. The forward-looking
statements speak only as of this press release and we assume no
duty to update them to reflect new, changing or unanticipated
events or circumstances.
Contact:
Mr. Heung Gon Kim
Chief Financial Officer
Gravity Co., Ltd.
Email: kheung@gravity.co.kr
Ms. Ji Hee Kim
IR Manager
Gravity Co., Ltd.
Email: ircommunication@gravity.co.kr
Telephone: +82-2-2132-7800
GRAVITY Co.,
Ltd.
|
Consolidated
Balance Sheet
|
|
(In millions of KRW
and thousands of US$)
|
|
|
|
|
|
|
|
As
of
|
|
|
|
31-Dec-14
|
|
31-Mar-15
|
|
|
|
KRW
|
|
US$
|
|
KRW
|
|
US$
|
Assets
|
(audited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
28,382
|
|
25,622
|
|
28,194
|
|
25,453
|
|
Short-term financial
instruments
|
14,500
|
|
13,090
|
|
14,500
|
|
13,090
|
|
Accounts receivable,
net
|
5,159
|
|
4,657
|
|
4,504
|
|
4,066
|
|
Other current
assets
|
2,651
|
|
2,393
|
|
2,139
|
|
1,931
|
|
|
Total current
assets
|
50,692
|
|
45,762
|
|
49,337
|
|
44,540
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
1,213
|
|
1,095
|
|
1,021
|
|
922
|
Leasehold and other
deposits
|
937
|
|
846
|
|
935
|
|
844
|
Intangible
assets
|
9,973
|
|
9,003
|
|
8,974
|
|
8,101
|
Other non-current
assets
|
281
|
|
254
|
|
310
|
|
280
|
|
|
Total
assets
|
63,096
|
|
56,960
|
|
60,577
|
|
54,687
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
2,713
|
|
2,449
|
|
2,364
|
|
2,134
|
|
Deferred
revenue
|
5,727
|
|
5,170
|
|
5,235
|
|
4,726
|
|
Other current
liabilities
|
1,211
|
|
1,093
|
|
913
|
|
824
|
|
|
Total current
liabilities
|
9,651
|
|
8,712
|
|
8,512
|
|
7,684
|
Long-term deferred
revenue
|
5,268
|
|
4,756
|
|
6,569
|
|
5,930
|
Accrued severance
benefits
|
103
|
|
93
|
|
98
|
|
88
|
Other non-current
liabilities
|
226
|
|
204
|
|
210
|
|
191
|
|
|
Total
liabilities
|
15,248
|
|
13,765
|
|
15,389
|
|
13,893
|
Common
shares
|
3,474
|
|
3,136
|
|
3,474
|
|
3,136
|
Additional paid-in
capital
|
75,076
|
|
67,776
|
|
75,076
|
|
67,776
|
Retained
earnings
|
(31,796)
|
|
(28,704)
|
|
(34,424)
|
|
(31,076)
|
Accumulated other
comprehensive income
|
1,521
|
|
1,372
|
|
1,504
|
|
1,357
|
|
|
Total parent company
shareholders' equity
|
48,275
|
|
43,580
|
|
45,630
|
|
41,193
|
Non-controlling
interest
|
(427)
|
|
(385)
|
|
(442)
|
|
(399)
|
|
|
Total
equity
|
47,848
|
|
43,195
|
|
45,188
|
|
40,794
|
|
|
Total liabilities and
equity
|
63,096
|
|
56,960
|
|
60,577
|
|
54,687
|
|
|
|
|
* For convenience
purposes only, the KRW amounts are expressed in U.S. dollars at the
rate of KRW 1,107.71 to US$ 1.00, the noon buying rate in effect on
March 31, 2015 as quoted by the Federal Reserve Bank of New
York.
|
GRAVITY Co.,
Ltd.
|
Consolidated
Statements of Operations
|
|
(In millions of KRW
and thousands of US$ except for share and ADS data)
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
31-Dec-14
|
|
31-Mar-14
|
|
31-Mar-15
|
|
|
|
(KRW)
|
|
(US$)
|
|
(KRW)
|
|
(US$)
|
|
(KRW)
|
|
(US$)
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Online
games-subscription revenue
|
2,322
|
|
2,096
|
|
1,890
|
|
1,706
|
|
1,698
|
|
1,533
|
|
Online
games-royalties and license fees
|
2,895
|
|
2,613
|
|
3,575
|
|
3,227
|
|
2,512
|
|
2,268
|
|
Mobile games and
applications
|
3,322
|
|
2,999
|
|
4,317
|
|
3,897
|
|
4,203
|
|
3,794
|
|
Character
merchandising and other revenue
|
791
|
|
714
|
|
985
|
|
889
|
|
656
|
|
592
|
|
|
Total net
revenue
|
9,330
|
|
8,422
|
|
10,767
|
|
9,719
|
|
9,069
|
|
8,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
8,031
|
|
7,250
|
|
9,467
|
|
8,546
|
|
7,676
|
|
6,930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
(loss)
|
1,299
|
|
1,172
|
|
1,300
|
|
1,173
|
|
1,393
|
|
1,257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
2,859
|
|
2,581
|
|
3,366
|
|
3,039
|
|
2,494
|
|
2,251
|
|
Research and
development
|
1,779
|
|
1,606
|
|
812
|
|
733
|
|
1,458
|
|
1,316
|
|
Impairment losses on
intangible assets
|
1
|
|
1
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Total operating
expenses
|
4,639
|
|
4,188
|
|
4,178
|
|
3,772
|
|
3,952
|
|
3,567
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
(3,340)
|
|
(3,016)
|
|
(2,878)
|
|
(2,599)
|
|
(2,559)
|
|
(2,310)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
321
|
|
288
|
|
282
|
|
255
|
|
202
|
|
182
|
|
Interest
expense
|
(2)
|
|
(2)
|
|
(3)
|
|
(3)
|
|
(2)
|
|
(2)
|
|
Foreign currency
income (loss), net
|
12
|
|
11
|
|
96
|
|
87
|
|
4
|
|
4
|
|
Others,
net
|
2
|
|
3
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
tax expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
and equity loss on
investments
|
(3,007)
|
|
(2,716)
|
|
(2,503)
|
|
(2,260)
|
|
(2,355)
|
|
(2,126)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expenses
|
9,007
|
|
8,131
|
|
410
|
|
370
|
|
287
|
|
259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before equity
loss on investments
|
(12,014)
|
|
(10,847)
|
|
(2,913)
|
|
(2,630)
|
|
(2,642)
|
|
(2,385)
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity income (loss)
on investments
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Net loss
|
(12,014)
|
|
(10,847)
|
|
(2,913)
|
|
(2,630)
|
|
(2, 642)
|
|
(2,385)
|
Net income (loss)
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interest
|
(143)
|
|
(129)
|
|
56
|
|
51
|
|
(14)
|
|
(13)
|
|
Parent
company
|
(11,871)
|
|
(10,718)
|
|
(2,969)
|
|
(2,681)
|
|
(2,628)
|
|
(2,372)
|
Loss per
share
- Basic and
diluted
|
(1,708)
|
|
(1.54)
|
|
(427)
|
|
(0.39)
|
|
(378)
|
|
(0.34)
|
Weighted average
number of shares outstanding
- Basic and
diluted
|
6,948,900
|
|
6,948,900
|
|
6,948,900
|
|
6,948,900
|
|
6,948,900
|
|
6,948,900
|
Loss per
ADS(1)
- Basic and
diluted
|
(3,416)
|
|
(3.08)
|
|
(854)
|
|
(0.78)
|
|
(756)
|
|
(0.68)
|
|
|
* For convenience,
the KRW amounts are expressed in U.S. dollars at the rate of KRW
1,107.71 to US$1.00, the noon buying rate in effect on March 31,
2015 as quoted by the Federal Reserve Bank of New York.
|
(1) Each ADS
represents two common shares
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/gravity-reports-first-quarter-of-2015-results-300089285.html
SOURCE Gravity