Pearl Abyss (263750) Q1 2025 earnings summary

Executive summary

• Q1 2025 operating revenue was KRW 83.7 billion, with 99.8% from the game segment and 0.2% from other activities, down 12.5% quarter-over-quarter and 2.0% year-over-year.

• Operating loss was KRW 5.2 billion, turning negative due to increased development costs for new titles, while net profit was KRW 0.5 billion, a sharp decline from previous quarters.

• Black Desert and EVE maintained stable live service with new content updates and preparations for next-gen console launches.

• Crimson Desert marketing ramped up globally, with demos at GDC, Benelux, London, and PAX East, receiving strong positive feedback and driving high expectations.

• Cash and cash equivalents at quarter-end were KRW 124.8 billion, with total assets of KRW 1.14 trillion.

Financial highlights

• Q1 operating revenue was KRW 83.7 billion, down from KRW 95.7 billion in Q4 2024 and KRW 85.4 billion in Q1 2024.

• Operating loss was KRW 5.2 billion, compared to a profit of KRW 2.2 billion in Q4 2024 and an improved result from FY2023.

• Net profit was KRW 0.5 billion, down 98.9% quarter-over-quarter and 96.1% year-over-year.

• Operating expenses were KRW 88.9 billion, down 4.8% quarter-over-quarter but up 4.8% year-over-year.

• Basic and diluted EPS for Q1 2025 were KRW 8 per share.

Segment performance

• Game segment contributed KRW 83.5 billion (99.8% of total revenue), with the remainder from investment and consulting.

• Black Desert added new content across PC, console, and mobile, with preparations for PS5/Xbox Series X|S launches and new dream horse content.

• EVE Online updated its Revenant expansion, prepared for the Legion expansion, and introduced new economic systems and tournament events.

• Blockchain-based EVE Frontier offered free play and new content, with ongoing upgrades and global marketing.

• Asia, Americas/Europe, and domestic markets remain key revenue contributors.