Amended Report of Foreign Issuer (6-k/a)

Date : 08/08/2019 @ 10:08AM
Source : Edgar (US Regulatory)
Stock : Gravity Co Ltd (GRVY)
Quote : 41.18  2.32 (5.97%) @ 3:49PM

Amended Report of Foreign Issuer (6-k/a)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 6-K/A

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of August 2019

Commission File Number 000-51138

 

GRAVITY CO., LTD.

(Translation of registrant’s name into English)

 

15F, 396 World Cup buk-ro, Mapo-gu, Seoul 121-795, Korea

 

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.  Form 20-F   Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): 



EXPLANATORY NOTE

 

This amendment to the Report on Form 6-K of GRAVITY Co., Ltd. previously filed on the date hereof, is being filed in order to correct data of Consolidated Statements of Comprehensive Income. Except as set forth herein, there are no other changes to the original Report on Form 6-K.

GRAVITY REPORTS SECOND QUARTER OF 2019 RESULTS AND BUSINESS UPDATES

Seoul, South Korea – August 8, 2019 – GRAVITY Co., Ltd. (NasdaqGM: GRVY) (“Gravity” or “Company”), a developer and publisher of online and mobile games based in South Korea, today announced its unaudited financial results for the second quarter ended June 30, 2019, prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board and business updates.

SECOND QUARTER 2019 HIGHLIGHTS

 

 

Total revenues were KRW 78,127 million (US$ 67,667 thousand), representing a 41.5% decrease from the first quarter ended March 31, 2019 (“QoQ”) and a 24.0% increase from the second quarter ended June 30, 2018 (“YoY”).

 

Operating profit was KRW 12,998 million (US$ 11,257 thousand), representing a 45.0% decrease QoQ and a 56.2% increase YoY.

 

Profit before income tax expenses was KRW 14,037million (US$ 12,158 thousand), representing a 42.4% decrease QoQ and a 62.4% increase YoY.

 

Net profit attributable to parent company was KRW 10,861 million (US$ 9,407 thousand), representing a 45.0% decrease QoQ and a 64.2% increase YoY.

 

REVIEW OF SECOND QUARTER 2019 FINANCIAL RESULTS

 

Revenues

 

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.

 

Mobile game and application revenues were KRW 66,463 million (US$ 57,565 thousand) for the second quarter of 2019, representing a 45.1% decrease QoQ from KRW 121,147 million


and a 28.3% increase YoY from KRW 51,789 million. The decrease QoQ resulted primarily from decreased revenues from Ragnarok M: Eternal Love in Southeast Asia, North America, South America, and Oceania, Taiwan, and Korea. Such decrease was partially offset by revenue from Ragnarok M: Eternal Love in Japan, which was launched on June 5, 2019. The increase YoY was primarily due to revenues from Ragnarok M: Eternal Love in Southeast Asia, North America, South America, Oceania, and Japan. This increase was partially offset by decreased revenues from Ragnarok M: Eternal Love in Korea and Taiwan. RO: Idle Poring in global markets except for China and Japan, and Ragnarok R in Taiwan and Korea.

Character merchandising and other revenues were KRW 2,086 million (US$ 1,807 thousand) for the second quarter of 2019, representing 16.6% decrease QoQ from KRW 2,500 million and a 9.1% increase YoY from KRW 1,912 million.

 

Cost of Revenue

 

Cost of revenue was KRW 56,858 million (US$ 49,246 thousand) for the second quarter of 2019, representing a 43.8% decrease QoQ from KRW 101,237 million and a 31.8% increase YoY from KRW 43,150 million. The decrease QoQ was mainly due to decreased commission paid for mobile game services related to Ragnarok M: Eternal love in Southeast Asia, North America, South America and Oceania, Taiwan, and Korea. The increase YoY was mostly from increased commission paid for mobile game services related to Ragnarok M: Eternal love in Southeast Asia, North America, South America and Oceania and salaries.

 

Operating Expenses

 

Operating expenses were KRW 8,271 million (US$ 7,164 thousand) for the second quarter of 2019, representing a 5.4% decrease QoQ from KRW 8,746 million and a 28.4% decrease YoY from KRW 11,553 million. The decrease QoQ was mainly attributable to decreased advertising expenses for Ragnarok M: Eternal Love in Korea. Such decrease was partially offset by increased commission paid and research and development expenses. The decrease YoY was mostly resulted from decreased advertising expenses for Ragnarok M: Eternal Love in Korea. Such decrease was partially offset by increased research and development expenses and salaries.

 

Profit before income tax expenses

 

Profit before income tax expenses was KRW 14,037 million (US$ 12,158 thousand) for the second quarter of 2019 compared with profit before income tax expense of KRW 24,389 million for the first quarter of 2019 and profit before income tax expenses of KRW 8,642 million for the second quarter of 2018.

 

Net Profit

 

As a result of the foregoing factors, Gravity recorded a net profit attributable to parent company of KRW 10,861 million (US$ 9,407 thousand) for the second quarter of 2019 compared with net profit attributable to parent company of KRW 19,760 million for the first quarter of 2019 and a net profit attributable to parent company of KRW 6,615 million for the second quarter of 2018.

 

Liquidity


 

The balance of cash and cash equivalents and short-term financial instruments was KRW 111,164 million (US$ 96,281 thousand) as of June 30, 2019.

Note: For convenience purposes only, the KRW amounts have been expressed in U.S. dollars at the exchange rate of KRW 1,154.58 to US$ 1.00, the noon buying rate in effect on June 28, 2019 as quoted by the Federal Reserve Bank of New York.

GRAVITY BUSINESS UPDATE

 

Ragnarok Online IP-based Games

 

Ragnarok M: Eternal Love, a MMORPG mobile game

Ragnarok M: Eternal Love (locally named Ragnarok Masters in Japan) has launched in Japan on June 5, 2019 by GungHo Online Entertainment Inc, (“GungHo”), the licensee of Ragnarok Online. Also, Gravity is preparing the service for Europe (except for some regions), Turkey and Russia in the third quarter of 2019.

 

Ragnarok Web MMORPG, a web browser-based 3D new version of game

Ragnarok web MMORPG has launched in Taiwan, Hong Kong and Macau on June 5, 2019.

Other Ragnarok Online IP-based games

 

Gravity is planning to launch RO Click H5, a HTML 5 version of idle game globally in September 2019.

 

A 3D Action MORPG mobile game, Ragnarok Spear of Odin , is expected to be launched in Taiwan, Hong Kong, and Macau in the second half of 2019. The game was developed by NeoCyon, our subsidiary in Korea.

 

Ragnarok Online

The company is scheduled to be re-launched Ragnarok Online in Indonesia in September 2019. The publisher of the game has changed from Gravindo to Gravity Game Link, a joint venture in Indonesia.

 

Other IP games

The Color of Dream Fantasy Latele , a MMORPG mobile game , is expected to be launched in Japan during the second half of 2019.

 

Investor Presentation

 

Gravity issued an investor presentation. The presentation contains the Company’s recent business updates, results of second quarter in 2019 and Gravity’s business plan. The presentation can be found on the Company’s website under the IR Archives section at http://www.gravity.co.kr/en/ir/pds/list.asp. Korean and Japanese versions of the presentation


are also provided on the website.

About GRAVITY Co., Ltd. ---------------------------------------------------

Based in Korea, Gravity is a developer and publisher of online and mobile games. Gravity's principal product, Ragnarok Online, is a popular online game in many markets, including Japan and Taiwan, and is currently commercially offered in 83 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, 2018 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. Jin Lee

Ms. Minji Oh
IR Unit
Gravity Co., Ltd.
Email: ir@gravity.co.kr
Telephone: +82-2-2132-7800~1

#     #     #



GRAVITY Co ., Ltd.

Consolidated Statements of Financial Position

(In millions of KRW and thousands of US$)

 

 

As of

 

 

 

31-Dec-18

 

 

30-Jun-19

 

 

 

KRW

 

 

US$

 

 

KRW

 

 

US$

 

 

 

(audited)

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

86,051

 

 

 

74,530

 

 

 

88,664

 

 

 

76,793

 

Short-term financial instruments

 

 

9,500

 

 

 

8,228

 

 

 

22,500

 

 

 

19,488

 

Accounts receivable, net

 

 

60,664

 

 

 

52,542

 

 

 

34,817

 

 

 

30,156

 

Other receivables, net

 

 

255

 

 

 

221

 

 

 

239

 

 

 

207

 

Prepaid expenses

 

 

2,516

 

 

 

2,179

 

 

 

2,096

 

 

 

1,815

 

Other current assets

 

 

1,182

 

 

 

1,024

 

 

 

2,390

 

 

 

2,070

 

Total current assets

 

 

160,168

 

 

 

138,724

 

 

 

150,706

 

 

 

130,529

 

Property and equipment, net

 

 

1,498

 

 

 

1,297

 

 

 

5,843

 

 

 

5,061

 

Intangible assets

 

 

1,163

 

 

 

1,007

 

 

 

1,687

 

 

 

1,461

 

Deferred tax assets

 

 

7,413

 

 

 

6,421

 

 

 

7,035

 

 

 

6,093

 

Other non-current financial assets

 

 

1,494

 

 

 

1,294

 

 

 

1,554

 

 

 

1,346

 

Other non-current assets

 

 

1,438

 

 

 

1,245

 

 

 

1,411

 

 

 

1,222

 

Total assets

 

 

173,174

 

 

 

149,988

 

 

 

168,236

 

 

 

145,712

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

71,928

 

 

 

62,298

 

 

 

38,350

 

 

 

33,215

 

Deferred revenue

 

 

16,476

 

 

 

14,270

 

 

 

12,421

 

 

 

10,758

 

Withholdings

 

 

2,019

 

 

 

1,749

 

 

 

1,456

 

 

 

1,261

 

Accrued expense

 

 

1,031

 

 

 

893

 

 

 

1,050

 

 

 

909

 

Income tax payable

 

 

1,944

 

 

 

1,684

 

 

 

2,005

 

 

 

1,737

 

Other current liabilities

 

 

123

 

 

 

106

 

 

 

2,135

 

 

 

1,849

 

Total current liabilities

 

 

93,521

 

 

 

81,000

 

 

 

57,417

 

 

 

49,729

 

Long-term deferred revenue

 

 

3,598

 

 

 

3,116

 

 

 

1,960

 

 

 

1,698

 

Other non-current liabilities

 

 

503

 

 

 

436

 

 

 

2,401

 

 

 

2,080

 

Total liabilities

 

 

97,622

 

 

 

84,552

 

 

 

61,778

 

 

 

53,507

 

Share capital

 

 

3,474

 

 

 

3,009

 

 

 

3,474

 

 

 

3,009

 

Capital surplus

 

 

27,141

 

 

 

23,506

 

 

 

27,140

 

 

 

23,506

 

Other components of equity

 

 

138

 

 

 

120

 

 

 

277

 

 

 

240

 

Retained earnings (Accumulated deficit)

 

 

45,405

 

 

 

39,326

 

 

 

76,026

 

 

 

65,847

 

Equity attributable to owners of the Parent Company

 

 

76,158

 

 

 

65,961

 

 

 

106,917

 

 

 

92,602

 

Non-controlling interest

 

 

(606

)

 

 

(525

)

 

 

(459

)

 

 

(397

)

Total equity

 

 

75,552

 

 

 

65,436

 

 

 

106,458

 

 

 

92,205

 

Total liabilities and equity

 

 

173,174

 

 

 

149,988

 

 

 

168,236

 

 

 

145,712

 

 

* For convenience purposes only, the KRW amounts are expressed in U.S. dollars at the rate of KRW 1,154.58 to US$ 1.00, the noon buying rate in effect on June 28, 2019 as quoted by the Federal Reserve Bank of New York.

 


GRAVITY Co., Ltd.

Consolidated Statements of Comprehensive Income

(In millions of KRW and thousands of US$ except for share and ADS data)

 

 

Three months ended

 

 

Six months ended

 

 

 

31-Mar-19

 

 

30-Jun-18

 

 

30-Jun-19

 

 

30-Jun-18

 

 

30-Jun-19

 

 

 

(KRW)

 

 

(KRW)

 

 

(KRW)

 

 

(US$)

 

 

(KRW)

 

 

(KRW)

 

 

(US$)

 

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Online games-subscription revenue

 

 

6,256

 

 

 

6,116

 

 

 

6,746

 

 

 

5,843

 

 

 

15,012

 

 

 

13,002

 

 

 

11,261

 

Online games-royalties and license fees

 

 

3,720

 

 

 

3,209

 

 

 

2,832

 

 

 

2,452

 

 

 

7,828

 

 

 

6,552

 

 

 

5,675

 

Mobile games and applications

 

 

121,147

 

 

 

51,789

 

 

 

66,463

 

 

 

57,565

 

 

 

103,185

 

 

 

187,610

 

 

 

162,492

 

Character merchandising and other revenue

 

 

2,500

 

 

 

1,912

 

 

 

2,086

 

 

 

1,807

 

 

 

3,312

 

 

 

4,586

 

 

 

3,972

 

Total net revenue

 

 

133,623

 

 

 

63,026

 

 

 

78,127

 

 

 

67,667

 

 

 

129,337

 

 

 

211,750

 

 

 

183,400

 

Cost of revenue

 

 

101,237

 

 

 

43,150

 

 

 

56,858

 

 

 

49,246

 

 

 

88,934

 

 

 

158,095

 

 

 

136,929

 

Gross profit

 

 

32,386

 

 

 

19,876

 

 

 

21,269

 

 

 

18,421

 

 

 

40,403

 

 

 

53,655

 

 

 

46,471

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

6,665

 

 

 

9,470

 

 

 

5,733

 

 

 

4,966

 

 

 

23,297

 

 

 

12,398

 

 

 

10,738

 

Research and development

 

 

1,877

 

 

 

1,742

 

 

 

2,432

 

 

 

2,106

 

 

 

3,616

 

 

 

4,309

 

 

 

3,732

 

Others, net

 

 

204

 

 

 

341

 

 

 

106

 

 

 

92

 

 

 

347

 

 

 

310

 

 

 

268

 

Total operating expenses

 

 

8,746

 

 

 

11,553

 

 

 

8,271

 

 

 

7,164

 

 

 

27,260

 

 

 

17,017

 

 

 

14,738

 

Operating profit

 

 

23,640

 

 

 

8,323

 

 

 

12,998

 

 

 

11,257

 

 

 

13,143

 

 

 

36,638

 

 

 

31,733

 

Finance income(costs):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance income

 

 

1,062

 

 

 

892

 

 

 

1,141

 

 

 

989

 

 

 

1,482

 

 

 

2,203

 

 

 

1,907

 

Finance costs

 

 

(313

)

 

 

(573

)

 

 

(102

)

 

 

(88

)

 

 

(866

)

 

 

(415

)

 

 

(359

)

Profit before income tax

 

 

24,389

 

 

 

8,642

 

 

 

14,037

 

 

 

12,158

 

 

 

13,759

 

 

 

38,426

 

 

 

33,281

 

Income tax expenses(profits)

 

 

4,627

 

 

 

2,042

 

 

 

3,208

 

 

 

2,779

 

 

 

3,635

 

 

 

7,835

 

 

 

6,786

 

Profit for the year

 

 

19,762

 

 

 

6,600

 

 

 

10,829

 

 

 

9,379

 

 

 

10,124

 

 

 

30,591

 

 

 

26,495

 

Profit attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interest

 

 

2

 

 

 

(15

)

 

 

(32

)

 

 

(28

)

 

 

(40

)

 

 

(30

)

 

 

(26

)

Owners of Parent company

 

 

19,760

 

 

 

6,615

 

 

 

10,861

 

 

 

9,407

 

 

 

10,164

 

 

 

30,621

 

 

 

26,521

 

Earning per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Basic and diluted

 

 

2,844

 

 

 

952

 

 

 

1,563

 

 

 

1.40

 

 

 

1,463

 

 

 

4,407

 

 

 

3.80

 

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

 

 

 

6,948,900

 

Earning per ADS (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Basic and diluted

 

 

2,844

 

 

 

952

 

 

 

1,563

 

 

 

1.40

 

 

 

1,463

 

 

 

4,407

 

 

 

3.80

 

 

* For convenience, the KRW amounts are expressed in U.S. dollars at the rate of KRW 1,154.58 to US$1.00, the noon buying rate in effect on June 28, 2019 as quoted by the Federal Reserve Bank of New York.

(1) Each ADS represents one common shares.

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

GRAVITY CO., LTD.

 

 

By:

/s/ Heung Gon Kim

Name:

Heung Gon Kim

Title:

Chief Financial Officer

Date: August 8, 2019

 

Gravity (NASDAQ:GRVY)
Historical Stock Chart

1 Year : From Nov 2018 to Nov 2019

Click Here for more Gravity Charts.

Gravity (NASDAQ:GRVY)
Intraday Stock Chart

Today : Thursday 14 November 2019

Click Here for more Gravity Charts.

Latest GRVY Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....


No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts


Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.