Pearl Abyss (263750) Q3 2024 earnings summary

Executive summary

• Q3 2024 focused on live service updates for Black Desert and EVE, major marketing for Crimson Desert, and launches including Black Desert China and EVE Galaxy Conquest, with ongoing investments in new IPs and global expansion.

• Revenue for the first nine months of 2024 was ₩246.7 billion, down 26% year-over-year, with operating loss of ₩14.5 billion and net income of ₩14.1 billion, reflecting a turnaround from the prior year's net loss.

• Black Desert introduced the Land of the Morning Light: Seoul update and new classes, while Crimson Desert development neared completion and received strong acclaim at global events.

Financial highlights

• Q3 operating revenue was KRW 79.5 billion, down 2.8% QoQ and 6.4% YoY; operating loss was KRW 9.2 billion, net loss was KRW 7.8 billion.

• Revenue for Q1–Q3 2024 was ₩246.7 billion, down from ₩333.5 billion in 2023.

• Black Desert IP revenue was KRW 54 billion, down 10% QoQ; EVE IP revenue was KRW 20.5 billion, down 5.2% QoQ.

• Operating expenses rose to KRW 88.7 billion, up 1.2% QoQ and 7.1% YoY.

• Cash and equivalents stood at ₩203.5 billion as of September 2024.

Segment performance

• Black Desert and EVE remain core revenue drivers, with Black Desert China and EVE Galaxy Conquest launches highlighted.

• Game segment contributed 97.6% of revenue; Black Desert IP accounted for 75% of segment sales, EVE IP for 25%.

• Online games: ₩176.5 billion (71.6% of segment sales), mobile: ₩54.3 billion (22%), console: ₩9.9 billion (4%).

• Regional revenue: 20% Korea, 24% Asia, 56% North America/Europe.

• Black Desert China officially launched on October 24th with 20 classes and positive user feedback.