South Korean publisher Gamevil (KDQ:063080) has posted net profits of 2.5 billion Won (around $2.3 million) in the first three months of 2011.

This is down 23 percent compared to the same quarter previous year.

However, with the company having dipped into its funds, hiring new staff, sales rose across the period, hitting 6.40 billion Won ($5.9 million) – up marginally, 1.5 percent, from the 6.30 billion Won posted in Q1 2010.

Despite the profit slip, Gamevil has branded the quarter a successful one, with the company maintaining the highest percentage of operating profit ratio in the Korean mobile gaming industry at more than 40 percent.

The firm also reported that consolidated overseas revenue has increased by 37 percent year on year, with smartphone revenues up by 211 percent.

Setting sights on the second quarter

Gamevil said the rise in sales is evidence that its business is successfully adapting to the industry's wider shift towards smartphone platforms.

The company also expects Q2 2011 to deliver further success, outperforming its first quarter figures thanks to the release of nine new titles for both the App Store and Android Market.

"We expect even more growth coming from smartphones and overseas in the 2nd quarter," said CFO and executive VP Yong Kuk Lee.

"Growth will com from new titles like Air Penguin reaching #1 on the Apple's App Store and with new sequels of Zenonia and Baseball Superstar coming for both Apple and Google Android devices."

The company claims it will also continue expanding the reach of its games on social network, including Train City, Baseball Superleague, Chalk n' Talk.

[source: Gamevil]