Pearl Abyss (263750) Q4 2024 earnings summary

Executive summary

• Black Desert celebrated its 10th anniversary with major user events and content updates, including global festivals and new in-game features, driving performance.

• Black Desert China launched in October, contributing to regional expansion and stable performance.

• EVE Online released two expansion packs in 2024, with ongoing efforts to strengthen its lifecycle and the EVE franchise expanded with new packs and EVE Vanguard.

• Crimson Desert is in the final stages of development, with a Q4 2025 launch planned and aggressive global marketing initiatives underway.

• Achieved significant turnaround in 4Q24 with operating profit of KRW 2.4 billion and net profit of KRW 46.8 billion, reversing prior quarters' losses.

Financial highlights

• 2024 operating revenue reached KRW 342.4 billion, up 2.7% year-over-year, with an operating loss of KRW 12.1 billion and net profit of KRW 61 billion, a 301.3% year-over-year increase.

• Q4 operating revenue was KRW 95.7 billion, up 20.4% quarter-over-quarter and 13.4% year-over-year; Q4 net profit was KRW 46.8 billion, turning to a surplus.

• Q4 game revenue was KRW 91.1 billion (+22.3% QOQ); other revenue was KRW 4.6 billion (-8% QOQ).

• Q4 operating expenses were KRW 93.4 billion (+5.3% QOQ).

• Financial income in Q4 surged to KRW 53.3 billion, contributing to the strong net profit.

Segment performance

• Regional revenue breakdown: 18% Korea, 30% Asia, 52% North America and Europe.

• Platform revenue: 76% PC, 20% mobile, 4% console.

• Game revenue remained the dominant contributor, with regional revenue led by Korea, followed by Asia and NA/EU.

• PC platform accounted for the largest share of revenue, with console and mobile contributing smaller portions.

• Q4 operating expenses were KRW 93.4 billion (+5.3% QOQ), with labor expenses at KRW 46.9 billion (+6.2% QOQ) and advertising up 32.3% QOQ due to Crimson Desert marketing.