UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2024
Commission File Number 000-51138

GRAVITY CO., LTD.
————————————————————————————————————
(Translation of registrant’s name into English)

14F, 396 World Cup buk-ro, Mapo-gu, Seoul 121-795, Korea
————————————————————————————————————
(Address of principal executive office)


Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F þ Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o



GRAVITY REPORTS SECOND QUARTER OF 2024 RESULTS AND BUSINESS UPDATES

Seoul, South Korea – August 9, 2024 – GRAVITY Co., Ltd. (NasdaqGM: GRVY) (“Gravity” or “Company”), a developer and publisher of online and mobile games based in South Korea, today announced its unaudited financial results for the second quarter ended June 30, 2024, prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board and business updates.
SECOND QUARTER 2024 HIGHLIGHTS

•Total revenues were KRW 122,967 million (US$ 89,330 thousand), representing a 2.7% increase from the first quarter ended March 31, 2024 (“QoQ”) and a 48.5% decrease from the second quarter ended June 30, 2023 (“YoY”).

•Operating profit was KRW 14,989 million (US$ 10,889 thousand), representing a 44.2% decrease QoQ and a 71.6% decrease YoY.

•Profit before income tax expenses was KRW 20,057 million (US$ 14,570 thousand), representing a 38.3% decrease QoQ and a 63.6% decrease YoY.

•Net profit attributable to parent company was KRW 12,569 million (US$ 9,131 thousand), representing a 53.2% decrease QoQ and a 72.1% decrease YoY.


REVIEW OF SECOND QUARTER 2024 FINANCIAL RESULTS

Revenues

Online game revenues for the second quarter of 2024 were KRW 19,445 million (US$ 14,126 thousand), representing a 7.6% increase QoQ from KRW 18,065 million and a 14.2% increase YoY from KRW 17,025 million. The increase QoQ was mainly attributable to increased revenues from Ragnarok Online in Thailand. The increase YoY was also mainly due to increased revenues from Ragnarok Online in Thailand.

Mobile game revenues were KRW 99,019 million (US$ 71,933 thousand) for the second quarter of 2024, representing a 0.5% increase QoQ from KRW 98,548 million and a 54.7% decrease YoY from KRW 218,687 million. The increase QoQ was resulted by increased revenues from Ragnarok Origin, which was launched in North, Central and South America on February 28, 2024 and initial revenues from THE RAGNAROK (Ragnarok: Novice Hearts), which was launched in Taiwan, Hong Kong and Macau on June 6, 2024. Such increase was partially offset by decreased revenues from Ragnarok Origin in Southeast Asia. The decrease YoY was mainly due to decreased revenues from Ragnarok Origin in Southeast Asia, Taiwan, Hong Kong and Macau and Ragnarok X: Next Generation in Korea. This decrease was partially offset by increased revenues from Ragnarok Origin in North, Central and South America and THE RAGNAROK (Ragnarok: Novice Hearts) in Taiwan, Hong Kong and Macau.

Other revenues were KRW 4,503 million (US$ 3,271 thousand) for the second quarter of 2024, representing a 42.2% increase QoQ from KRW 3,166 million and a 41.5% increase YoY from KRW 3,182 million.

Cost of Revenue

Cost of revenue was KRW 76,006 million (US$ 55,215 thousand) for the second quarter of 2024, representing a 3.2% increase QoQ from KRW 73,628 million and a 54.8% decrease YoY from KRW 168,309 million. The increase QoQ was mainly due to commission paid for mobile game services related to Ragnarok Origin in North, Central and South America and THE RAGNAROK (Ragnarok: Novice Hearts) in Taiwan, Hong Kong and Macau. The decrease YoY was primarily due to decreased commission paid for mobile game services related to Ragnarok Origin in Southeast Asia, Taiwan, Hong Kong and Macau and Ragnarok X: Next Generation in Korea.



Operating Expenses

Operating expenses were KRW 31,972 million (US$ 23,226 thousand) for the second quarter of 2024, representing a 65.8% increase QoQ from KRW 19,282 million and a 78.8% increase YoY from KRW 17,884 million. The increase QoQ was mainly due to increased advertising expenses for mobile game services related to THE RAGNAROK (Ragnarok: Novice Hearts) in Taiwan, Hong Kong and Macau. The increase YoY was also mainly due to increased advertising expenses for mobile game services related to THE RAGNAROK (Ragnarok: Novice Hearts) in Taiwan, Hong Kong and Macau.


Profit Before Income Tax Expenses

Profit before income tax expenses was KRW 20,057 million (US$ 14,570 thousand) for the second quarter of 2024 compared with profit before income tax expense of KRW 32,498 million for the first quarter of 2024 and profit before income tax expenses of KRW 55,097 million for the second quarter of 2023.

Net Profit

As a result of the foregoing factors, Gravity recorded a net profit attributable to parent company of KRW 12,569 million (US$ 9,131 thousand) for the second quarter of 2024 compared with net profit attributable to parent company of KRW 26,866 million for the first quarter of 2024 and a net profit attributable to parent company of KRW 45,016 million for the second quarter of 2023.

Liquidity

The balance of cash and cash equivalents and short-term financial instruments was KRW 499,247 million (US$ 362,680 thousand) as of June 30, 2024.

Note: For convenience purposes only, the KRW amounts have been expressed in U.S. dollars at the exchange rate of KRW 1,376.55 to US$ 1.00, the noon buying rate in effect on June 28, 2024 as quoted by the Federal Reserve Bank of New York.


GRAVITY BUSINESS UPDATES

Ragnarok Online IP-based Games

•Ragnarok: Dawn (tentative English title)

Ragnarok: Dawn (tentative English title) officially received an ISBN from Chinese government on June 5, 2024, and aims to complete development in 2025.

•Ragnarok Online, an MMORPG PC game

Ragnarok Online was officially launched in China on June 28, 2024.

•Ragnarok X: Next Generation, an MMORPG mobile game

Ragnarok X: Next Generation will be launched in China on September 13, 2024, with preparations underway for its launch in Japan.

•Ragnarok Origin, an MMORPG mobile and PC game

Ragnarok Origin is preparing for its launch in Europe.

•THE RAGNAROK (Ragnarok: Novice Hearts), an MMORPG mobile game

THE RAGNAROK (Ragnarok: Novice Hearts) was launched in Taiwan, Hong Kong and Macau on June 6, 2024, and it aims to be launched in Korea in the third quarter of 2024 and Southeast Asia in the fourth quarter of 2024.

•Ragnarok: Rebirth, an MMORPG mobile game

Ragnarok: Rebirth was launched in Southeast Asia on June 27, 2024, and it aims to be launched in Taiwan, Hong Kong and Macau in the fourth quarter of 2024.

•Other Ragnarok Online IP-based games

Ragnarok Landverse, an MMORPG Blockchain PC game based on P2E systems, was launched in Thailand on July 12, 2024.

Other IP-based games

•Mirren: Millennium Tour, a Turn Strategy RPG mobile game

Mirren: Millennium Tour aims to be launched in Korea in the third quarter of 2024.

•TOKYO PSYCHODEMIC, a 2D Cinematic Profiling Adventure PC and console game

TOKYO PSYCHODEMIC was launched in Japan on May 30, 2024, and it aims to be launched in Global in the second half of 2024.

•KAMiBAKO, a World Craft RPG PC and console game

KAMiBAKO will be launched in Japan on August 29, 2024, and it aims to be launched in Global in the second half of 2024.


Expansion of Ragnarok IP-business

Ragnarok Golf Monsters is an indoor-screen golf brand based on the Ragnarok monster characters. Gravity Communications Co., Ltd. has been having a soft opening since May 30, 2024, and it aims to officially open the facility in Taipei, Taiwan in the second half of 2024.



Investor Presentation

Gravity issued an investor presentation. The presentation contains the Company’s recent business updates, results of the second quarter in 2024 and Gravity’s business plan. The presentation can be found on the Company’s website under the IR Archives section at https://www.gravity.co.kr/en/ir/updates. Korean and Japanese versions of the presentation are also provided on the website.

About GRAVITY Co., Ltd. ---------------------------------------------------
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.
Forward-Looking Statements:

Certain statements in this press release may include, in addition to historical information, “forward-looking statements” within the meaning of the “safe-harbor” provisions of the U.S. Private Securities Litigation Reform Act 1995. Forward-looking statements can generally be identified by the use of forward-looking terminology, such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe”, “project,” or “continue” or the negative thereof or other similar words, although not all forward-looking statements contain these words. Investors should consider the information contained in our submissions and filings with the United States Securities and Exchange Commission (the “SEC”), including our annual report for the fiscal year ended December 31, 2023 on Form 20-F, together with such other documents that we may submit to or file with the SEC from time to time, on Form 6-K. The forward-looking statements speak only as of this press release and we assume no duty to update them to reflect new, changing or unanticipated events or circumstances.

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





GRAVITY Co., Ltd.
Consolidated Statements of Financial Position

(In millions of KRW and thousands of US$)

As of
31-Dec-2330-Jun-24
KRWUS$KRWUS$
(audited)(unaudited)(unaudited)(unaudited)
Assets
Current assets:
Cash and cash equivalents184,082 133,727 142,133 103,253 
Short-term financial instruments277,215 201,384 357,114 259,427 
Accounts receivable, net71,213 51,733 70,130 50,946 
Other receivables, net3,637 2,642 1,020 740 
Prepaid expenses2,994 2,175 3,674 2,669 
Other current financial assets4,439 3,225 5,105 3,709 
Other current assets3,319 2,411 5,945 4,319 
Total current assets546,899 397,297 585,121 425,063 
Property and equipment, net10,151 7,374 7,859 5,709 
Intangible assets, net6,370 4,628 5,911 4,294 
Deferred tax assets5,952 4,324 5,319 3,864 
Other non-current financial assets1,824 1,325 1,772 1,287 
Other non-current assets6,985 5,074 7,887 5,730 
Total assets578,181 420,022 613,869 445,947 
Liabilities and Equity
Current liabilities:
Accounts payable61,778 44,878 59,309 43,085 
Deferred revenue18,093 13,144 17,273 12,548 
Withholdings3,072 2,232 2,649 1,924 
Accrued expense2,313 1,680 2,050 1,489 
Income tax payable16,927 12,297 11,678 8,484 
Other current liabilities4,251 3,088 3,631 2,638 
Total current liabilities106,434 77,319 96,590 70,168 
Long-term account payables677 492 678 493 
Long-term deferred revenue1,785 1,297 2,716 1,973 
Other non-current liabilities3,175 2,307 2,141 1,555 
Deferred tax liabilities2,382 1,730 2,383 1,731 
Total liabilities114,453 83,145 104,508 75,920 
Share capital3,474 2,524 3,474 2,524 
Capital surplus27,098 19,685 26,979 19,599 
Other components of equity4,016 2,917 10,294 7,478 
Retained earnings428,499 311,285 467,934 339,932 
Equity attributable to owners of the Parent Company463,087 336,411 508,681 369,533 
Non-controlling interest641 466 680 494 
Total equity463,728 336,877 509,361 370,027 
Total liabilities and equity578,181 420,022 613,869 445,947 

* For convenience purposes only, the KRW amounts are expressed in U.S. dollars at the rate of KRW 1,376.55 to US$ 1.00, the noon buying rate in effect on June 28, 2024 as quoted by the Federal Reserve Bank of New York.




GRAVITY Co., Ltd.
Consolidated Statements of Comprehensive Income

(In millions of KRW and thousands of US$ except for share and ADS data)
   Three months endedSix months ended
  31-Mar-2430-Jun-2330-Jun-2430-Jun-2330-Jun-24
  (KRW)(KRW)(KRW)(US$)(KRW)(KRW)(US$)
  (unaudited)(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)
Revenues: 
Online games 18,06517,02519,44514,12639,72137,51027,249
Mobile games 98,548218,68799,01971,933357,681197,567143,523
Other revenue 3,1663,1824,5033,2716,4397,6695,571
Total net revenue 119,779238,894122,96789,330403,841242,746176,343
Cost of revenue 73,628168,30976,00655,215273,794149,634108,702
Gross profit 46,15170,58546,96134,115130,04793,11267,641
Operating expenses: 
Selling, general and administrative expenses 15,74715,02928,10820,41928,30043,85531,859
Research and development 3,6012,8524,2863,1145,7747,8875,730
Others, net (66)3(422)(307)(46)(488)(355)
Total operating expenses 19,28217,88431,97223,22634,02851,25437,234
Operating profit 26,86952,70114,98910,88996,01941,85830,407
Finance income(costs): 
Finance income 6,297 4,2138,8676,4419,67415,16411,016
Finance costs (668)(1,817)(3,799)(2,760)(4,370)(4,467)(3,245)
Profit before income tax 32,49855,09720,05714,570101,32352,55538,178
Income tax expense 5,61510,0707,4765,43119,86913,0919,510
Profit for the year 26,88345,02712,5819,13981,45439,46428,668
Profit attributable to: 
Non-controlling interest 17 11 12 8 (28)29 21 
Owners of Parent company 26,86645,01612,5699,13181,48239,43528,647
Earnings per share 
- Basic and diluted 3,866 6,4781,8091.3111,7265,6754.12
Weighted average number of shares outstanding
- Basic and diluted6,948,900 6,948,900 6,948,900 6,948,900 6,948,900 6,948,900 6,948,900 
Earnings per ADS
- Basic and diluted3,866 6,4781,8091.3111,7265,6754.12


* For convenience, the KRW amounts are expressed in U.S. dollars at the rate of KRW 1,376.55 to US$1.00, the noon buying rate in effect on June 28, 2024 as quoted by the Federal Reserve Bank of New York.
(1) Each ADS represents one common share.





SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


GRAVITY CO., LTD.
By:/s/ Heung Gon Kim
Name:Heung Gon Kim
Title:Chief Financial Officer
Date: August 9, 2024



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