Business Context and Reporting Period
This Form 6-K filing by GRAVITY Co., Ltd. (NasdaqCM: GRVY) covers business updates issued on March 9, 2017. Gravity is a South Korean developer and publisher of online and mobile games, best known for the Ragnarok Online intellectual property, which is commercially offered in 78 markets.
Key Financial Metrics
The filing text does not provide specific financial values for revenue, profit, cash flow, margins, debt, or liquidity. This document serves as a business update regarding product launches and market rankings rather than a financial results report.
Material Changes and Business Updates
- Ragnarok R (Card RPG): Launched in China (Oct 2016), Taiwan (Dec 2016), and Thailand (Feb 2017). The game reached the top 10 mobile games in both Taiwan and Thailand at its peak. A Korean launch is scheduled for the first half of 2017.
- Ragnarok M (MMORPG): Began open beta testing in China on January 19, 2017, reaching the top 30 iOS games at its peak. Official service commenced on March 1, 2017, distributed by X.D. Network Inc. (re-licensed by Dream Square). Launches in Taiwan and Korea are expected in 2017.
- Partnership: Both titles were developed under a license and development agreement between Gravity and Shanghai The Dream Network Technology Co., Ltd. ("Dream Square").
Guidance, Outlook, and Risks
Management expects Ragnarok M to launch in Taiwan and Korea during 2017, and Ragnarok R to launch in Korea in the first half of 2017. The filing includes standard forward-looking statements regarding future events and market performance. A specific risk note clarifies that game rankings cited are based on public statistical data and do not necessarily reflect actual profits.
Investor Verification Checklist
- Verify the actual revenue contribution of Ragnarok R and Ragnarok M following their respective launches, as rankings do not guarantee profitability.
- Confirm the specific launch dates for Ragnarok R in Korea and Ragnarok M in Taiwan and Korea.
- Review the terms of the license and development agreement with Dream Square for revenue-sharing details.
- Check subsequent filings for financial impact of these new mobile titles on the company's overall revenue mix.