Following 3N, Pearl Abyss also 'Slumps'... Turns to Loss in Q2 (Update)

[Asia Economy Reporter Buaeri] Pearl Abyss announced on the 12th that it recorded sales of 88.5 billion KRW and an operating loss of 6 billion KRW in the second quarter. Sales decreased by 32.8% year-on-year and 12.3% quarter-on-quarter, and operating profit turned to a loss.

Deferred overseas sales and increased labor costs were the causes of the poor performance.

Despite steady sales performance in Black Desert North America and Europe, which were converted to direct service, accounting deferrals continued to have an impact. Previously, royalty sales were received and immediately reflected as sales, but as the company started direct service, it explained that some performance was deferred according to the provisional value of game items.

Moreover, labor costs, including 10 billion KRW incentives paid to all employees in May, increased by 48.5% compared to the previous year.

Looking at the sales composition, overseas sales accounted for 83%, up 5% from the previous quarter, as the effect of direct service in North America and Europe continued. By platform, PC accounted for 65%, mobile 24%, and console 11%, with PC and console making up 76%.

Pearl Abyss plans to recover performance through entry into China with titles such as 'EVE Echoes' and 'Black Desert Mobile.' Black Desert Mobile obtained the game service license, Panho, in China on June 28. Pearl Abyss will also unveil new content at the global game show 'Gamescom' held on August 25.

Joo Seok-woo, Pearl Abyss Chief Financial Officer (CFO), said, "We will further strengthen the life cycles of Black Desert and EVE and make thorough preparations for the Chinese service of Black Desert Mobile," adding, "We plan to actively proceed with new releases and global marketing through participation in Gamescom."

Meanwhile, NCSoft, Netmarble, and Nexon, which announced their second-quarter results on the afternoon of the previous day, experienced an 'earnings shock.' Due to the prolonged COVID-19 pandemic, lack of new releases, and rising labor costs, their second-quarter performance sharply declined.

This content was produced with the assistance of AI translation services.