Gravity Co ( (GRVY) ) has released its Q1 earnings. Here is a breakdown of the information Gravity Co presented to its investors.
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Gravity Co., Ltd., a South Korean developer and publisher of online and mobile games, is renowned for its popular game Ragnarok Online, which is available in 91 regions globally. The company recently released its financial results for the first quarter of 2025, showcasing a mixed performance with both growth and challenges in its financial metrics.
During the first quarter of 2025, Gravity reported total revenues of KRW 137,464 million (US$ 93,231 thousand), marking a 6% increase from the previous quarter and a 14.8% increase year-over-year. However, the company’s operating profit decreased by 8% year-over-year to KRW 24,730 million (US$ 16,772 thousand), despite a 55% increase from the previous quarter. Net profit attributable to the parent company also saw a decline of 18% year-over-year, settling at KRW 22,038 million (US$ 14,947 thousand).
The company’s revenue growth was primarily driven by its mobile game segment, which saw a 17.2% year-over-year increase, largely due to the successful launch of new titles such as Ragnarok M: Classic and Ragnarok Idle Adventure Plus. However, the online game segment experienced a slight year-over-year revenue increase of 4.1%, with fluctuations in regional performance. The cost of revenue rose by 18.8% year-over-year, influenced by increased commissions for mobile game services.
Looking ahead, Gravity’s management remains focused on expanding its Ragnarok IP-based games across various regions, with several new game launches planned throughout 2025. The company also established a new subsidiary in Malaysia to enhance its service offerings in the region. With these strategic moves, Gravity aims to strengthen its market position and drive future growth in the competitive gaming industry.