Gravity Co. 20-F — FY2024 (April 2025)

Gravity Co., Ltd. reports FY 2024 financial results for a company headquartered in Seoul that operates primarily through its flagship Ragnarok franchise. Revenue of KRW 500.8 billion (US$338.9 k) fell 31% year‑on‑year, driven by a 35.6% decline in mobile‑game sales—particularly Ragnarok Origin—which now accounts for 42.1% of total revenue, down from 62.3% in FY 2023. Mobile titles comprise 81% of sales, while the online title Ragnarok Online contributes only 14.2%, reflecting weaker performance in Thailand and Taiwan, the largest single markets.

Operating profit dropped 47% to KRW 85.4 billion, yet gross‑profit margin improved from 33.2% to 38.7%, largely due to lower platform‑service commissions. Net income remained relatively flat, and cash flow from operations stayed strong at KRW 95.6 billion, although investing outflows increased to KRW 47 bn from property and equipment purchases. The company maintains no long‑term debt, with short‑term liabilities of KRW 12.3 bn due within one year.

Risk disclosures emphasize heavy reliance on a single franchise, exposure to third‑party publishing arrangements, and regulatory uncertainty across multiple jurisdictions—including Korea’s Game Act, GDPR, and U.S. data‑privacy laws. Currency volatility is significant, as 90% of revenue originates in non‑Won currencies, and the company has no hedging strategy. Governance follows Korean standards with an 11‑member board, five independent directors, and separate audit, nomination, and compensation committees. Overall, Gravity Co. faces concentrated revenue streams, regulatory compliance challenges, and foreign‑exchange exposure while maintaining a solid liquidity position.