Ragnarok Online
Game
Documents about Ragnarok Online
Gravity Co. Annual Report FY2008
Gravity Co., Ltd. reports fiscal-year 2008 results that reveal a sharp decline in profitability despite modest revenue growth.
- Gravity Co. reported a net loss of KRW 22,265 million (US$2.17 million) in FY2008, despite a 32% increase in consolidated sales to KRW 53,170 million (US$41.6 million).
- Ragnarok Online remains the company's primary revenue driver, accounting for 73% of total sales and creating significant dependency on the title's life cycle.
- Profitability was eroded by a decline in gross-profit margin from 51.6% to 47.8% and sharp increases in salary costs and the amortization of intangible assets.
GungHo Online Entertainment FY2008 Financial Results
GungHo Online Entertainment achieved a significant financial turnaround in fiscal year 2008, reporting record-high consolidated net sales of 11.2 billion yen, representing a 49.6 percent increase over the previous period.
- GungHo Online Entertainment achieved record-high consolidated net sales of 11.2 billion yen in FY2008, a 49.6 percent increase that returned the company to operating and ordinary profitability.
- The acquisition of a 59.31 percent stake in GRAVITY Co., Ltd. was the primary driver of growth, strengthening the company's international distribution and Ragnarok Online franchise performance.
- The company successfully exited a period of financial instability characterized by debt covenant breaches and going-concern warnings through third-party capital allocations and asset management.
GungHo Online Entertainment FY2008 Q2 Interim Financial Results
GungHo Online Entertainment’s fiscal year 2008 second-quarter results reveal a period of significant operational recovery contrasted by persistent financial instability.
- GungHo Online Entertainment reported a 41.2% sales increase to 5.64 billion yen and an operating profit of 914 million yen in Q2 2008, primarily driven by the performance of Ragnarok Online.
- Despite operational gains, the company recorded a 330 million yen net loss due to investment securities valuation losses and minority interest adjustments, leading management to withhold full-year earnings forecasts.
- To address liquidity issues and covenant breaches on syndicated loans, the firm raised 4 billion yen via a third-party share allotment in April 2008 and repaid a 1.2 billion yen commitment line.
GungHo Online Entertainment FY2007 Financial Results
GungHo Online Entertainment faced a period of severe financial instability during the 2007 fiscal year, characterized by a substantial net loss of 5.17 billion yen.
- GungHo Online Entertainment reported a net loss of 5.17 billion yen for FY2007, despite a 10.1 percent revenue increase to 7.5 billion yen.
- The company recorded 4.3 billion yen in write-downs on marketable securities and 1.3 billion yen in impairment losses due to underperforming titles and development delays.
- Financial instability led to a technical default on syndicated loan covenants, forcing urgent negotiations to avoid early repayment and raising concerns about the company's status as a going concern.
Gravity Co., Ltd. — 20-F Annual Report for Fiscal Year Ended December 31, 2006
Gravity Co., Ltd. filed a Form 20-F for the fiscal year ending December 31, 2006, reporting a 23.3% decline in total revenue to US$44.0 million, largely driven by a 25.1% drop in subscription income from its flagship MMORPG Ragnarok Online and a 30.1% fall in royalty and license fees.
- Gravity Co., Ltd. reported a net loss of US$23.9 million for the 2006 fiscal year, driven by a 23.3% decline in total revenue to US$44.0 million.
- The company remains heavily dependent on its flagship title, Ragnarok Online, which accounted for 78.3% of total revenue across 20 global markets.
- Operating expenses rose to US$39.6 million, resulting in a negative profit margin of -54.4% for the fiscal year.
GungHo Online Entertainment FY2006 Q2 Financial Results
GungHo Online Entertainment’s financial performance for the second quarter of fiscal year 2006 reflects a period of aggressive growth tempered by significant structural and investment-related challenges.
- GungHo Online Entertainment reported a 132.9% year-on-year sales increase to 3.3 billion yen for FY2006 Q2, yet incurred a net loss of 871.5 million yen.
- The net loss was primarily driven by an 810 million yen impairment loss on securities and costs related to capital strengthening via new share issuances.
- Flagship title Ragnarok Online accounted for 72.3% of total revenue, highlighting a significant operational risk due to heavy reliance on a single asset.
Gravity Co., Ltd. Form 20-F: Fiscal Year Ended December 31, 2005
Gravity Co., Ltd.’s fiscal-year 2005 Form 20-F presents a company heavily reliant on its flagship MMORPG, Ragnarok Online, which generated 88% of total sales and 81% of revenue from overseas licensees.
- Gravity Co., Ltd. experienced a significant financial downturn in 2005, shifting from a $19 million profit in 2004 to a $3 million net loss driven by a 30.8% decline in subscription revenue.
- The company is heavily dependent on its flagship title, Ragnarok Online, which accounted for 88% of total sales and 81% of revenue from overseas licensees.
- Operational profitability is under pressure, with gross profit margins contracting from 84% to 70% and operating expenses rising throughout the fiscal year.
GungHo Online Entertainment FY2005 Q3 Financial Results
GungHo Online Entertainment’s financial results for the third quarter of the fiscal year ending December 2005 reflect a period of significant business expansion and strategic investment, despite a decline in short-term profitability.
- GungHo Online Entertainment reported a 13.8% year-over-year increase in net sales to 3,494 million yen, driven by the performance of Ragnarok Online and the expansion of its portfolio to eight online games.
- Operating profit plummeted 78.6% to 76 million yen, while quarterly net profit fell 97.3% to 11 million yen, largely due to a 521 million yen increase in advertising and service launch expenses.
- The company significantly increased its debt load to fund operations and strategic investments, resulting in a 5,531 million yen surplus from financing activities.
GungHo Online Entertainment FY2005 Q2 Interim Financial Results
GungHo Online Entertainment experienced a period of significant revenue growth during the second quarter of fiscal year 2005, reaching 2.3 billion yen, a 17.8 percent increase driven primarily by the robust performance of its flagship title, Ragnarok Online.
- GungHo Online Entertainment reported 2.3 billion yen in revenue for FY2005 Q2, representing a 17.8% increase driven by the performance of Ragnarok Online.
- Despite revenue growth, operating and net profits declined due to high capital expenditures, including personnel costs, infrastructure investments, and corporate relocation.
- The company incurred a 188.2 million yen loss following the termination of an underperforming online game portal project in South Korea.
Gravity Co. 20‑F: Fiscal Year Ended December 31, 2004
Gravity Co., Ltd. reported a dramatic turnaround in fiscal 2004, with revenue surging to US$62.3 million—an increase of nearly 52% year-over-year—and net income rising from a loss to US$28.2 million, driven almost entirely by royalties and license fees from its flagship MMORPG, Ragnarok Online.
- Gravity Co. achieved a financial turnaround in 2004 with US$62.3 million in revenue, a 52% year-over-year increase, and US$28.2 million in net income.
- The flagship MMORPG Ragnarok Online is the company's primary revenue driver, accounting for 93.9% of total sales and generating high gross margins of 84%.
- The business model relies heavily on international licensing agreements, which expose the company to significant regulatory, market, and compliance risks in key territories like China, Taiwan, and Thailand.
Companies behind it
Gravity Co.owner31
GungHo Online Entertainmentdeveloper, owner, publisher33
Appleowner1,427
Googleowner1,585
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