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In last trading session, the stock price of Gravity Co., LTD. (ADR)(NASDAQ:GRVY) declined more than 2% to close the day at $3.90. The decline came at a share volume of 576 compared to average share volume of 2,328.

The buzz

Gravity, a publisher and developer of mobile and online games based in South Korea, released its unaudited financial report for 1Q2016. The revenues came at approximately $7.98 million, indicating a jump of 4.5% QoQ and a 0.3% increase YoY.

Royalty and license fee sales for 1Q2016 came at $2.957 million, representing a jump of 13.9% QoQ and a 34.1% increase YoY. The quarterly growth can be primarily attributed to revenue jump from Ragnarok Online in Japan. Also, the performance was positively impacted by the strong Japanese Yen compared to the Korean Won. The yearly jump can be attributed to strong revenues from Ragnarok Online in Taiwan and Japan and the strong Japanese Yen compared to the Korean Won.

The highlights

Mobile game and app revenues came at $2.297 million for 1Q2016, indicating a 34.8% decline QoQ and a 37.8% jump YoY. The drop in QoQ revenues was due to lower sales from ‘Ragnarok: Path of Heroes’ and app for a third party. Gravity reported that subscription revenues for 1Q2016 came at $1.876 million, representing a 128.3% jump QoQ and a 25.9% growth YoY. The revenue increase in quarter can be mainly attributed to higher sales from Ragnarok Online series in Canada and the United States. The increase in revenue YoY was primarily due to higher sales from Ragnarok Online in the U.S., Korea and Canada.

The character merchandising including other revenues came at $854,000 for the first quarter of 2016, registering a 21.8% jump QoQ and a 48.3% growth YoY. Gravity reported that cost of revenue declined 17.5% QoQ while it registered a growth of 13.8% YoY.

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