South Korea’s Com2uS is reporting record high quarterly sales and profits for Q2 2012, with revenue increasing 158 percent year-over-year to KRW 22 billion ($19.7 million), and net income increasing 490 percent year-over-year to KRW 6 billion ($5.31 million).
Com2uS’ revenue and net income also increased significantly quarter-over-quarter, with revenues up 96.4 percent over Q1’s KRW 11.2 billion and net income up 57.8 percent over Q1’s KRW 3.8 billion.
The company credited the increase in sales and profits to its growing lineup of social smartphone games and to switch to the free-to-play model, highlighting the performance of Tiny Farm, Derby Days, Monkey Battle (Swing Shot in the U.S.), Aqua Story, Com2uS Pro Baseball 2013 and Inotia 4 in particular. Revenues also increased significantly year-over-year due to the existence of a Games category in the Korean iOS app store. Prior to November 2011, the Korean Game Ratings Board had prohibited games in the Korean iOS app store due to concerns about age-ratings for games.
The company’s transition to smartphone gaming has so far, been extremely successful. Com2uS’s total smartphone sales in the second quarter were were KRW 19.9 billion ($17.6 million), up 325 percent year-over year, 117 percent quarter-over-quarter, and accounting for 90.4 percent of the company’s total quarterly revenues. By comparison in 2011, smartphone sales accounted for 64 percent of Com2uS’ total annual revenues.
Com2uS’ Korean revenues were KRW 14.5 billion ($12.8 million), or 65.9 percent of total revenues. International revenues for the second quarter increased 85 percent year-over-year and 36 percent quarter-over-quarter to KRW 7.5 billion ($6.6 million), growing to 34.1 percent of the company’s total quarterly revenue.
The company also noted it is now the first Korean mobile game company to see quarterly sales in excess of KRW 20 billion ($17.7 million). Com2uS’ operating margin was 31 percent for the quarter.
As part of today’s announcement, Com2uS also updated its sales estimates for the fiscal year. The company is now predicting total annual revenues of KRW 74.1 billion ($65.5 million), up 36 percent from previous estimates of KRW 54.6 billion ($47.9 million). Com2uS estimates its total smartphone revenues in the 2012 fiscal year will exceed KRW 66.8 billion ($59.1 million), up 39 percent from the company’s previous estimate of KRW 48 billion ($42.5 million.
The company’s shares rose on the news, climbing 1.09 percent today to KRW 46,300 ($40.97), giving Com2uS a market capitalization of KWR 467 billion ($413.2 million).