Gravity Announces Filing of Annual Report on Form 20-F for Fiscal Year 2023

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Gravity, a South Korean company listed on NasdaqGM under the ticker symbol GRVY, announced the filing of its annual report on Form 20-F for the fiscal year 2023. The report includes consolidated financial data showing a significant increase in revenue, operating profit, and net profit compared to the previous year.

Positive

• Gravity reported a consolidated revenue of KRW 725,516 million for the fiscal year ended December 31, 2023, representing a 56.5% increase from the previous year.
• The operating profit for the same period was KRW 160,367 million, marking a 53.2% growth year-over-year.
• The net profit attributable to the parent company amounted to KRW 132,019 million, indicating a substantial 58.7% rise compared to the previous fiscal year.

Negative

• None.

Financial Analyst

Examining the data provided by Gravity Co., Ltd.'s annual report, the substantial year-over-year growth in revenue, operating profit and net profit attributable to the parent company deserves a deeper look. With revenue jumping by 56.5%, the company has significantly outperformed last year's figures. What's telling here is the parallel increase in operating profit and net profit by 53.2% and 58.7% respectively, which suggests that the company has effectively managed its operational costs amidst this growth phase.

For an investor, these figures are indicative of a company's health and potential for sustained profitability. Moreover, considering the revenue proportion to net profit, investors might be interested in the profit margin, which can be calculated and compared to industry benchmarks. Such robust fiscal performance may also imply that Gravity has leverage to invest in research and development, expand its market presence, or deliver shareholder value through dividends or buybacks.

Market Research Analyst

From a market perspective, Gravity's impressive performance must be contextualized within the broader industry trends. One must consider the market dynamics at play, such as consumer behavior shifts, competitive landscape changes and technological advancements that could have influenced such results. The gaming industry, for instance, has been seeing a surge due to increased digital consumption patterns.

Understanding Gravity's market strategy, user engagement statistics and product pipeline would offer additional insight into their operational prowess and the sustainability of their revenue growth. Shareholders should look at these qualitative factors along with the stark numbers to gauge the potential longevity of Gravity's current growth trajectory.

Investment Risk Analyst

While the report signals strong fiscal performance, it's important to balance optimism with caution. An astute investor will assess risk factors such as dependency on flagship products or regional market risks that could be inherent in Gravity's business model. Furthermore, potential investors should also be aware of global economic uncertainties, as well as currency fluctuation risks, since the report is presented in KRW and the company is listed on NasdaqGM.

Due diligence on the company's governance, strategic direction and risk management policies would complement the financial assessment, providing a holistic view of the company's investment profile. The long-term effects of the company's growth will ultimately depend on its ability to navigate the volatile gaming market while maintaining its operational efficiency and profit margins.

Seoul, South Korea, April 26, 2024 (GLOBE NEWSWIRE) -- GRAVITY Co., Ltd. (NasdaqGM: GRVY) (“Gravity” or the “Company”) today announced that the Company filed its annual report on Form 20-F for the fiscal year ended December 31, 2023 with the Securities and Exchange Commission on April 26, 2024. The annual report can be accessed on the Company’s investor relations Web site at https://www.gravity.co.kr/en/ir/notice

The shareholders and ADS holders of Gravity may receive a hard copy of the annual report, which contains its audited consolidated financial statements, free of charge upon request. Requests should be directed to IR Unit, Gravity Co., Ltd., 15F, 396 World Cup buk-ro, Mapo-gu, Seoul 03925, South Korea.

In the annual report on Form 20-F, the consolidated revenue is KRW 725,516 million, the operating profit is KRW 160,367 million, and the net profit attributable to parent company is KRW 132,019 million for the fiscal year ended December 31, 2023.

(In millions of KRW)

	2023	2022	YoY
Revenue	725,516	463,618	56.5%
Operating profit	160,367	104,708	53.2%
Net profit attributable to parent company	132,019	83,162	58.7%

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 91 markets. For more information about Gravity, please visit http://www.gravity.co.kr.

Contact:
Mr. Heung Gon Kim
Chief Financial Officer
Gravity Co., Ltd.
Email: kheung@gravity.co.kr

Ms. Jin Lee
Ms. Shin Choi
IR Unit
Gravity Co., Ltd.
Email: ir@gravity.co.kr
Telephone: +82-2-2132-7800

FAQ

What did Gravity announce regarding its annual report for fiscal year 2023?

Gravity announced the filing of its annual report on Form 20-F for the fiscal year 2023.

Where can the annual report be accessed?

The annual report can be accessed on Gravity's investor relations website at https://www.gravity.kr/en/ir/notice.

What are the key financial figures mentioned in the annual report?

The consolidated revenue for 2023 was KRW 725,516 million, the operating profit was KRW 160,367 million, and the net profit attributable to the parent company was KRW 132,019 million.

What is the ticker symbol of Gravity on NasdaqGM?

Gravity is listed on NasdaqGM under the ticker symbol GRVY.