Pearl Abyss Reports Operating Loss of 4.2 Billion KRW in Q2 Due to Employee Bonus Payments

[Asia Economy Reporter Seungjin Lee] Pearl Abyss recorded an operating loss in the second quarter despite an increase in sales, due to the impact of employee bonuses and other factors.

Pearl Abyss announced on the 11th that its sales in the second quarter of 2022 reached 94 billion KRW, a 6% increase compared to the same period last year. Operating loss turned to a deficit of 4.2 billion KRW. Net profit for the period was recorded at 32 billion KRW.

The operating loss was influenced by bonuses, including the employee stock grant (own stock program). Labor costs in the second quarter increased by 10.4% year-on-year to 50.6 billion KRW, accounting for 51.5% of total operating expenses. Commission fees and advertising expenses were 21.4 billion KRW and 10.8 billion KRW, respectively, increasing by 21.8% and 11% compared to the previous year.

Pearl Abyss’s flagship intellectual property (IP), Black Desert, completed the transition to direct global service with the South American region in the second quarter. After the service transition, sales increased by 300% compared to the previous month, and new users increased by more than 750%, recording sales of 74.3 billion KRW.

The proportion of overseas sales in the second quarter accounted for 83% of the total, increasing by 3 percentage points compared to the previous quarter. Sales by platform were 72% PC, 21% mobile, and 7% console.

Black Desert and EVE IP focused on operations and updates based on user communication in the second quarter. The Black Desert IP resumed offline user events such as 'Voice of Adventurers' and 'Heidel Banquet' for the first time in over two years. EVE also strengthened its community by holding the 'EVE Fanfest 2022' in person for the first time in over three years.

Pearl Abyss plans to continue new updates and offline events starting with the awakening of Black Desert’s ‘Drakania’ and ‘Season: Dragon Knight’ in the third quarter. Additionally, by moving into Pearl Abyss’s new headquarters ‘Home One’ in Gwacheon, they aim to improve work efficiency and collaboration to focus on new game development. The new headquarters is a game development base equipped with cutting-edge facilities, aiming to create the ‘world’s best game.’

Jo Seok-woo, CFO of Pearl Abyss, said, “This year marks the 9th year of servicing Black Desert, and we have successfully completed direct global service with South America as the last region,” adding, “We will focus on managing the life cycle of existing IPs while also concentrating on new game development and marketing.”