logo
Share SHARE
FONT-SIZE Plus   Neg

GRAVITY Slips To Loss In Q2

South Korean online games developer Gravity Co. Ltd. (GRVY) said Wednesday it slipped to a loss in its second quarter, hurt by lower revenues across most segments and pared gross margin.

Results were impacted by a nearly 14.0% drop in revenues, compared to last year. Revenues at key segment of Royalty and licensing fee slid 10.2%. Subscription revenues fell 26.4%, partly due to non-consolidation of results for Gravity EU SASU, a former unit in France. Mobile revenues declined 9.0% from last year.

Gravity also incurred higher expenses, due to amortization, cost of goods sold by NeoCyon resulting from its increase in sales of goods related to mobile phone, among other factors.

For the second quarter, the company reported a net loss of $1.0 million or $1.13 billion Korean wons, compared to net income of 1.7 billion wons last year.

On a per American depositary share or ADS basis, loss for the quarter was $0.04 or 41 wons, compared to a profit of 62 wons in the prior year.

Net revenues for the second quarter totaled $12.5 million or 14.0 billion wons, a decline from 14.6 billion wons a year ago.

Shares of GRAVITY Co closed Wednesday at $1.46 down 25 cents or 14.62%, on the Nasdaq. In after hours, the stock stock lost 3 cents or 2.08% at $1.43.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Embark Veterinary Inc., a startup that makes dog DNA-testing kits for pet owners, vets and breeders, said it has raised $4.5 million in funding from investors and relocated its headquarters to Boston. The company intends to use the new funding to expand its canine genetic testing suite for pet owners, breeders, and veterinarians. Intel Corp. has completely shut down its wearables division about two weeks ago, CNBC reported, citing a person familiar with the matter. The company reportedly intends to focus on augmented reality. According to the CNBC report, Intel laid off about 80 percent of the team that made the Basis fitness watch in November 2016 and has now eliminated the division entirely. The Federal Trade Commission is investigating allegations that Amazon.com Inc. misled consumers about its pricing discounts, Reuters reported, citing a source close to the probe. The FTC probe is reportedly part of the agency's review of Amazon's proposed $13.4 billion deal to buy grocery chain Whole Foods Market Inc.
comments powered by Disqus
Follow RTT