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GRAVITY Slips To Loss In Q2

8/29/2012 8:20 PM ET

South Korean online games developer Gravity Co. Ltd. (GRVY: Quote) 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.

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by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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