Pearl Abyss Reports 2.3% Decrease in 2Q Operating Profit... 'Black Desert Mobile' Slows Down (Comprehensive)

Black Desert PC and Console Revenue Share Rises to 57%
EVE Online Mobile Version 'EVE Echoes' Launches Globally
"Committed to Securing New Pipelines"

[Asia Economy Reporter Jin-gyu Lee] Pearl Abyss announced on the 13th that its consolidated sales for the second quarter reached 131.7 billion KRW, with an operating profit of 50.6 billion KRW. These figures represent decreases of 8.4% and 2.3%, respectively, compared to the same period last year. This decline is attributed to the sluggish performance of its flagship game, Black Desert Mobile, both domestically and internationally.

However, the operating profit margin improved to 38%, indicating enhanced profitability. The proportion of overseas sales accounted for 78%, showing steady growth each quarter. Sales from the PC and console platforms of Black Desert and EVE Online increased by 25.3% and 11.5%, respectively, compared to the previous quarter due to stable global services. Consequently, the share of PC and console platform sales rose to 57%.

Black Desert saw increased sales across all global regions through continuous updates and promotions. Despite the COVID-19 pandemic, it actively communicated with users by holding the first-ever global online briefing session among domestic game companies. In the Japanese market, Black Desert transitioned to self-service, resulting in significant improvements in user metrics.

Black Desert Console continued its growth trend following the introduction of cross-play in March, driven by an increase in new and returning users and sales of new packages.

Jok Seok-woo, CFO of Pearl Abyss, stated during the conference call after the Q2 earnings announcement, "Amid the COVID-19 situation, we were able to stabilize sales and improve profitability simultaneously by continuously engaging with users. Moving forward, we will maintain profitability by strengthening intellectual property (IP) and focus on securing new pipelines."

Meanwhile, Pearl Abyss’s subsidiary CCP Games is preparing for the global launch of its new mobile title, EVE Echoes. Pearl Abyss said, "EVE Echoes, the mobile version of EVE Online, will officially launch globally at 5 PM today," adding, "It has attracted significant attention, with pre-registrations surpassing 5 million."

Pearl Abyss is developing Red Desert, the sequel to Black Desert, targeting a release in the fourth quarter of next year. Pearl Abyss CEO Jung Kyung-in explained during the conference call, "We are developing Red Desert with a target for the second half of next year and are preparing to disclose additional information about Red Desert within this year’s second half."