[Comprehensive] 2Q operating loss pearl Abyss… Improvement of profit margin with 'Black Desert' own service

[increased Moon Young-soo] Pearl Abyss lost its operating losses in the second quarter due to the lack of new works and bonuses. Pearl Abyss, which recently completed the new building, is planning to rebound in earnings by focusing on the next work development and focusing on the services of existing games.

On the 11th, Pearl Abyss (CEO Hur Jin-young) announced that it recorded sales of 94 billion won, operating loss of W4.2bn, and net profit of W32bn in the second quarter of 2022. Sales increased 6.2% YoY and operating losses decreased by 29.7%. Net profit increased by 1,26.5%. Revenue increased 2.8% QoQ and operating profit turned to deficit. Net profit increased 452.1%.

The company explained that operating profit recorded a deficit, reflecting bonuses including staff Stock Grant. Overseas sales accounted for 83%, up 3%p QoQ, and sales of PCs 72%, mobile 21%and console 7%by platform.

Pearl Abyss is to improve the profit margin of the flagship game, Black Desert. In particular, the company finished the world's direct service transition to South America in the second quarter. Since the change of service, black desert revenue has increased by 300% compared to the previous month and new users increased by more than 750%.

Black Desert and Eve Intellectual Property (IP) focused on operations and updates based on user communication in the second quarter. The Black Desert IP resumed the user event 'Voice of Adventurus' and 'Heidel Banquet' in two years. Eve also strengthened the community by facing the Eve Panfest 2022 in three years.

Pearl Abyss is planning to continue the new update and offline events of the Black Desert, starting with the release of 'Dracania' and 'Season: Dragon Knight'. In addition, the company plans to focus on developing new works by enhancing work efficiency and collaboration by moving in Pearl Abyss Gwacheon New Home One. The new building is a game development base that built a state-of-the-art facility with the goal of 'the world's best game'.

Cho Seok-woo, Chief Financial Officer of Pearl Abyss, said, This year, we have completed the world's direct service in South America for nine years after serving the Black Desert. I will concentrate on marketing together.

The public information of the next work, such as 'Red Desert', 'Dokkaebi' and 'Plan 8', has also been updated. Huh Jin-young, CEO of Pearl Abyss, said in a conference call, We have a place to unveil the red desert to several partners including the console company. I will give you a game and game. He added, We will release a red desert play video of more than 10 minutes this year.

About the goblin and plan 8, We are focusing on development to show the development of the goblin, but we will focus on the red desert release, so we will disclose it according to the preparation situation. The schedule is slowing.