Declining Revenue and Widening Deficit
Operating Expenses Rise, Led by Increased Advertising and Promotion
Pearl Abyss announced on August 13 that it recorded a consolidated operating loss of KRW 11.8 billion in the second quarter of this year, widening its deficit compared to the same period last year. This represents a 101.9% decrease year-on-year.
During the same period, revenue fell by 2.7% to KRW 79.6 billion. Due to foreign exchange translation losses resulting from exchange rate fluctuations, the company posted a net loss of KRW 22.7 billion, turning to a deficit.
Overseas markets accounted for 82% of total revenue. By region, North America and Europe made up 64%, while the domestic and Asian markets each contributed 18%.
By intellectual property (IP), revenue from "Black Desert" was KRW 54.9 billion, and "EVE" generated KRW 24.2 billion. The company explained that "Black Desert" gained popularity by adding a new difficulty level to the "Black Shrine Donghaedo Chapter" boss in the Land of the Morning, and by improving Node Wars and Conquest Wars.
Additionally, Black Desert Console launched versions for PlayStation 5 (PS5) and Xbox X|S, establishing a stable gameplay environment through hardware upgrades. "EVE Online" successfully held EVE Fanfest alongside the release of the expansion pack "Legion."
Operating expenses increased by 4.3% year-on-year to KRW 91.3 billion. Personnel expenses rose by 1.5%, while advertising and promotional expenses surged by 43.9% due to marketing activities related to "Crimson Desert."
The highly anticipated title "Crimson Desert" received positive reviews after unveiling a new questline demo at "PAX EAST" in Boston, USA in May, followed by its first showcase at "Summer Game Fest" in Los Angeles, USA in June.
Pearl Abyss plans to strengthen marketing for its new titles by participating in major global game shows such as Gamescom, PAX West, and Tokyo Game Show in the third quarter.
Jo Miyeong, Chief Financial Officer (CFO) of Pearl Abyss, stated, "In the second half of this year, we will continue to provide live services for Black Desert and EVE, while doing our utmost to ensure the successful launch of Crimson Desert."
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