Pearl Abyss (263750) Q2 2024 earnings summary

Executive summary

• Q2 2024 marked the 10th anniversary of Black Desert, with global events and major content updates for both Black Desert and EVE, enhancing user engagement.

• New IP initiatives included Black Desert China license issuance, technology and play tests for Project Awakening and EVE Galaxy Conquest, and Crimson Desert nearing completion with major marketing planned.

• Revenue for H1 2024 was ₩167.2 billion, with operating loss of ₩5.2 billion and net profit of ₩21.9 billion, showing a turnaround from the previous year's net loss.

• The company maintains a strong cash position and low leverage, with a debt ratio of 63.5%.

Financial highlights

• Q2 2024 revenue was KRW 81.8 billion, down 4.2% QoQ and up 4.3% YoY; H1 2024 revenue was ₩167.2 billion.

• Operating loss was KRW 5.8 billion in Q2 and ₩5.2 billion for H1, reversing from profit QoQ and improving YoY.

• Net profit was KRW 9.1 billion in Q2 (down 28.9% QoQ, turnaround YoY) and ₩21.9 billion for H1.

• Black Desert IP revenue was KRW 60 billion (down 10.2% QoQ); EVE IP revenue was KRW 21.6 billion (up 20% QoQ); H1: Black Desert ₩126.7 billion, EVE ₩39.6 billion.

• Cash and equivalents stood at ₩237.4 billion as of June 2024.

Segment performance

• Black Desert and EVE remain core revenue drivers, with Black Desert celebrating its 10th anniversary and EVE Online launching the Equinox expansion.

• Game business accounted for 99.4% of revenue; online games led with ₩119.8 billion, mobile ₩38.9 billion, console ₩7.6 billion.

• Regional revenue split: 18% domestic, 26% Asia, 56% North America/Europe; platform split: 75% PC, 21% mobile, 4% console.