[Asia Economy Reporter Jang Hyowon] IBK Investment & Securities analyzed on the 15th that Pearl Abyss confirmed a rebound in its gaming business and expects growing anticipation for new releases in the second half of the year.
Pearl Abyss recorded consolidated sales of 91.4 billion KRW, operating profit of 5.2 billion KRW, and net profit of 5.8 billion KRW in the first quarter of this year. Compared to the same period last year, sales and operating profit decreased by 9.4% and 60.3%, respectively. Although the results met consensus estimates, overall performance was weaker than the previous year.
In detail, game IP sales increased by 4% quarter-on-quarter, driven by the global performance of 'Geomeunsamak' and 'EVE'. 80% of total sales were generated overseas. By platform, PC accounted for 70%, mobile 24%, and console 6%.
Researcher Lee Seunghoon of IBK Investment & Securities said, “We expect momentum from the new releases of Red Samak and Black Clover games in the second half of the year,” and added, “Due to the poor performance of Geomeunsamak Mobile, which was released in China in April, we significantly lowered this year’s earnings forecast.”
Lee said, “Since these games were successful in domestic and international markets, disappointment over failure has already been strongly reflected,” and predicted, “The stock price rebound will begin when the release schedule for the console and PC-based Red Samak in the second half becomes clear.”
He continued, “Since the in-game video released in 2020 received positive reviews from global gamers and expectations are growing, if it is released in the fourth quarter, it is expected to greatly contribute to performance improvement.”
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