- Total revenue increased 14.8% YoY to KRW 137.4 billion (US$93.2 million).
- Operating profit grew 55% QoQ to KRW 24.7 billion (US$16.7 million) but decreased 8% YoY.
- Gravity (GRVY, Financial) launched several new games and expanded its operations geographically.
Gravity Co., Ltd. (GRVY), a prominent South Korean developer and publisher of online and mobile games, has announced its financial results for Q1 2025, revealing robust revenue growth. The company reported total revenues of KRW 137.4 billion (US$93.2 million), a significant increase of 14.8% year-over-year (YoY) and 6% quarter-over-quarter (QoQ). This growth was largely driven by the mobile gaming sector, which saw a 17.2% YoY increase to KRW 115.4 billion (US$78.3 million).
Despite the impressive revenue growth, Gravity experienced a mixed profitability performance. The operating profit for Q1 2025 was KRW 24.7 billion (US$16.7 million), reflecting a 55% QoQ increase, though it declined by 8% YoY. Additionally, net profit attributable to the parent company fell 18% YoY to KRW 22 billion (US$14.9 million). The decrease in profitability was attributed to a 18.8% YoY rise in the cost of revenue and a 31.1% increase in operating expenses, which were mainly due to heightened advertising costs associated with new game launches.
Gravity's strategic focus on expanding its game portfolio and geographical reach was evident in Q1 2025. The company launched several new titles, including "Ragnarok M: Classic" in Southeast Asia and "Ragnarok Idle Adventure Plus" globally, contributing to the surge in mobile game revenues. Furthermore, the company broadened its regional presence with the establishment of a new subsidiary in Malaysia, Gravity Game Unite, and the opening of the first Ragnarok Golf Monsters indoor-screen golf facility in Taipei, Taiwan.
On the financial front, Gravity maintains a strong position, holding KRW 577.1 billion (US$391.4 million) in cash and equivalents, offering sufficient flexibility to support ongoing expansion plans. Looking ahead, Gravity continues to prioritize its Ragnarok IP, with over ten new game launches planned for the remainder of 2025, indicating a commitment to leveraging its market-leading franchise for future growth opportunities.
