[Market Focus] Pearl Abyss Plunges 20% on Crimson Desert Delay and Widening Losses

Pearl Abyss is showing weakness in early trading.

As of 9:04 a.m. on August 13, Pearl Abyss shares were trading at 30,950 won, plunging 20.84% (8,150 won) from the previous day. The sharp decline is attributed to investor concerns, as the company's operating loss widened in the second quarter due to decreased revenue and increased operating expenses such as advertising and promotional costs, and the release of its upcoming title "Crimson Desert" has been postponed once again.

Pearl Abyss's consolidated operating loss (provisional) for the second quarter was 11.8 billion won, up from a loss of 5.8 billion won during the same period last year. Revenue fell by 2.7% to 79.6 billion won, and the company swung to a net loss of 22.7 billion won. Of the 91.3 billion won in operating expenses, labor costs accounted for 47.2 billion won (51.6%), commissions were 18.1 billion won (19.8%), and advertising and promotional expenses were 10.5 billion won (11.5%).

On this day, CEO Jin-Young Heo of Pearl Abyss stated during the Q2 earnings call, "The release of Crimson Desert is progressing more slowly than planned due to voice work, console certification, and schedule adjustments with partners. As a result, the release will likely be delayed by one quarter from the previously announced schedule."