Pearl Abyss (263750) Q1 2026 earnings summary

Executive summary

• Achieved consolidated Q1 2026 revenue of KRW 328.5 billion, up 21% year-over-year, driven by strong global performance of key IPs 'Black Desert' and 'Crimson Desert', with Crimson Desert reaching 5 million copies sold within 26 days and top Steam rankings.

• Operating income surged to KRW 212.1 billion, with net income from continuing operations at KRW 170.0 billion and overall net income at KRW 158.0 billion, impacted by discontinued operations.

• Black Desert franchise maintained stable quarter-over-quarter performance, supported by ongoing content updates and platform enhancements.

• Discontinued operations (sale of CCP ehf./Fenris Creations and subsidiaries) resulted in a net loss of KRW 12.1 billion, but overall net income remained strong.

• Launched 'Crimson Desert' globally in March 2026, achieving rapid sales milestones and strong user engagement.

Financial highlights

• Revenue: KRW 328.5 billion (Q1 2026), up from KRW 272.7 billion (Q1 2025); Crimson Desert contributed KRW 266.5 billion, Black Desert KRW 61.6 billion.

• Operating income: KRW 212.1 billion, up from KRW 32.2 billion year-over-year.

• Net income from continuing operations: KRW 170.0 billion; total net income: KRW 158.0 billion.

• Basic EPS from continuing operations: KRW 2,768; from discontinued operations: KRW -197.

• Cash and cash equivalents: KRW 990.8 billion at quarter-end, up from KRW 145.1 billion.

Outlook and guidance

• 2026 operating revenue projected at KRW 879.0–975.4 billion, with operating profit expected at KRW 487.6–572.6 billion.

• Focus on expanding global reach of core IPs and launching new titles 'DokeV' and 'PLAN 8', with DokeV prioritized for accelerated progress.

• Black Desert revenue is forecasted to decrease 8–10% year-over-year, while Crimson Desert is expected to contribute KRW 644.1–734.8 billion.

• 2Q26 revenue and profit expected to soften due to front-loaded package sales and increased labor expenses from performance bonuses.

• Continued investment in R&D and content updates to sustain long-term growth.