Micro-transactions boost Gamevil's profit margin to over 50 percent

Korean mobile publisher Gamevil [KDQ:063080] has announced its Q2 2009 financials.

Year-on-year, sales were up 67 percent to KRW 5.4 billion ($4.3 million).

Operating income was up 188 percent to KRW 3.2 billion ($2.6 million).

Net profit was up 214 percent to KRW 2.6 billion ($2.1 million).

This means Gamevil's net profit margin on sales was an amazing 51 percent.

Compared to its Q1 2009 period, sales were up 30 percent, operating income up 74 percent, and net profit up 55 percent, demonstrating the company's growth continues to be impressive despite the current economic situation.

The majority of Gamevile's revenue is made from micro-transactions when players of its free-to-play mobile sports and role-playing games such as Baseball Superstars and HYBRID: Eternal Whisper buy virtual items.

It has also released several games on the App Store, but to date, hasn't employed micro-transactions as Apple doesn't yet permit this for free apps.

"We'll continue to grow in the later half this year with sequels of our current portfolio and new franchises released in the domestic Korean market," said CFO, Yong Kuk Lee. "Also we're planning to bring more new titles to the global open markets as our future growth strategy."

These games will include iPhone versions of HYBRID: Eternal Whisper and a sequel to its popular Zenonia RPG.

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