Pearl Abyss Posts 5.2 Billion Won Operating Loss in Q1 Due to Increased Development Costs

Increased Development Costs for Subsidiary CCP Games' New Titles
Full Commitment to the Highly Anticipated "Crimson Desert"
Expansion of Demo Events

Pearl Abyss returned to a loss compared to the same period last year due to increased development costs.

On May 14, Pearl Abyss announced in a regulatory filing that its consolidated operating loss for the first quarter of this year was provisionally tallied at 5.242 billion won. During the same period, revenue decreased by 2.1% to 83.685 billion won, and net profit fell by 96.1% to 499 million won.

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Pearl Abyss explained that the loss was due to increased development costs for new titles at CCP Games, its game development subsidiary in Iceland. The company also stated that net profit declined because of reduced gains from investment company valuations and lower foreign exchange gains. Additionally, 80% of Pearl Abyss's total revenue was generated overseas.

Looking at the first-quarter performance of major titles, "Black Desert" maintained its popularity with the introduction of the new mythical horse "Voltarion" and the cooperative dungeon "Atoraxxion." Global launches for the PlayStation 5 and Xbox X|S versions of the game are also upcoming. "EVE Online" unveiled its annual roadmap along with an additional update for the "Revenant" expansion pack.

"Crimson Desert," considered one of Pearl Abyss's most anticipated titles, showcased its proprietary Black Space Engine at "GDC 2025," a game event held in San Francisco in March. At "PAX EAST" in Boston, the company held the first North American demo event for Crimson Desert. Pearl Abyss plans to gradually expand global demonstrations of Crimson Desert.

Jo Miyeong, Chief Financial Officer (CFO) of Pearl Abyss, said, "In 2025, we will continue to provide steady live services for Black Desert and EVE, and we will do our utmost to ensure the successful launch of Crimson Desert."

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