Gravity’s mobile revenues rise 95.7% YoY with worldwide Ragnarok success

• Gravity's financial results for Q3 with many results decreasing from the second quarter but improving dramatically from Q3 2022
• Mobile revenue was almost 10 times higher than online games revenue in the quarter

South Korean mobile developer and publisher Gravity has revealed its financial results for Q3 covering the three-month period up to September 30 2023. Overall, many results decreased from the second quarter but improved dramatically compared to Q3 2022, such as a 72.1% rise in total revenues to ₩176,145 million ($130 million).

While a dramatic increase compared to last year, this actually meant a 26.3% fall compared to Q2 2023. This is a common trend through the report, largely attributed to Ragnarok X: Next Generation and Ragnarok Origin; both released to major success this year in Korea and Southeast Asia respectively, the former in January and the latter in April.

A strong year

Notably, Gravity’s report showed just how many leagues ahead its mobile performance is compared to its other ventures, with online game revenues coming to ₩17.3 billion ($12.85 million) while mobile game revenues were almost 10 times higher at ₩155.47 billion ($115.34 million).

On mobile, this meant that Gravity raised its revenues by a mighty 95.7% YoY, although revenues decreased by 28.9% from the previous quarter. Notably, online revenues decreased 10.1% YoY but rose by 1.7% between quarters.

Gravity has attributed this third-quarter fall in mobile revenue to decreased momentum in Ragnarok Origin in Southeast Asia, Taiwan, Hong Kong and Macau, and to Ragnarok X: Next Generation in Korea.

However, the impressive YoY revenue spike was also attributed to these Ragnarok titles due to their strong launches in new regions in 2023, bolstering Gravity’s figures significantly.

Following a similar trend, operating profit fell 28.1% QoQ but rose 78.3% YoY to ₩37,91 billion ($28.13 million). Net profit attributable to parent company GungHo Online, meanwhile, fell 35.7% QoQ and rose 80.2% YoY to ₩28.96 billion ($21.49 million).

Overall, it is clear that Gravity’s mobile revenue is its strength, with the Ragnarok series proving an undeniable success for the company this year. It may have lost some steam in the third quarter, but overall successes are still dramatically higher than in value than was the case in 2022.

This is being seen increasingly in 2023, with the year seemingly marking a return to form. Publisher Nexon, for example, has just revealed a 78% YoY revenue rise in North America and Europe.