Gamevil recently reported another quarter of growth with overall revenue at 9.8 billion Won ($9 million), up 34% from the same period one year ago. Net profit was on the rise as well; they reported 3.8 billion Won ($3.5 million) in profits at an operating profit ratio of just over 41%, the highest in the Korean mobile gaming industry. Net profit is up 12% from this time last year.
The company attributes its growth to smartphone gaming and free-to-play games. Of the overall revenue, 62% of it—6.1 billion Won ($5.6 million)—came from smartphone titles. That is up 259% from last year. Air Penguin is its leading success as it hit the top of the charts in several countries, including the United States. The company also recently announced a $10 million investment in partnerships, which includes the acquisition of the Cartoon Wars and Colosseum series.
CFO and executive vice president Yong Kuk Lee had this to say: “The second quarter result shows that Gamevil has successfully transformed to a publisher for smartphones, which are the driving force of the mobile landscape. We will continue to meet the challenges of this evolving market head-on, with new quality titles and more partnerships across diverse platforms including Apple App Store and Google Android Market.”
Analysis: That is a lot of growth. 259% increase in revenue from smartphone titles? And that makes up 62% of their overall revenue? One thing is certain: right now, social games are a cash cow and video game companies are definitely jumping in. Air Penguin, Baseball Superstars, KAMI RETRO, Chalk ‘n’ Talk, Train City, and ZENONIA have all served the company pretty well, and the acquisition of Cartoon Wars and Colosseum is going to help. No doubt they’re going to continue with the smartphone/freemium business model, and odds are they’re going to continue to push into American and European markets. Their success will only increase as the social games market does, and since this company defines itself through that market, if it ever does crash, these guys will be hit hard.