In This Article:
Release Date: May 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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PearlAbyss Corp (XKRX:263750) successfully launched new content updates for Black Desert, enhancing user engagement with new cooperative and challenging content.
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The company is preparing for the launch of PlayStation 5 and Xbox X&S versions of Black Desert, aiming to provide a better user experience.
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Crimson Desert received positive feedback for its graphics, in-depth battles, and open-world views during media demonstrations, boosting expectations.
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PearlAbyss Corp is actively engaging in global marketing efforts, including participation in major gaming events, to increase brand recognition and anticipation for Crimson Desert.
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The company is focusing on new growth engines by preparing new titles and expansion packs, aiming to diversify and increase revenue streams.
Negative Points
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Q1 operating revenue decreased by 12.5% quarter-over-quarter, attributed to the removal of certain revenue streams and increased development costs.
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The company reported an operating loss of 5.2 billion won, turning to a deficit due to increased costs associated with new title development.
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Net profit dropped significantly by 98.9% quarter-over-quarter, impacted by reduced gains on financial assets and foreign exchange.
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Operating expenses increased, with labor costs rising by 4.5% quarter-over-quarter, indicating higher operational costs.
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Feedback from users indicated challenges with Crimson Desert's gameplay and console optimization, requiring further adjustments before launch.
Q & A Highlights
Q: Can you provide a breakdown of Black Desert's mobile and PC revenue for this quarter? A: The revenue contribution for Black Desert remains at a similar level each quarter. While there are slight variations due to content updates, the overall trend is consistent with past quarters. (Answered by CBO Kim Jong-un)
Q: Can you share any performance metrics from your marketing efforts for Crimson Desert? A: While we have received positive feedback from users and media, we cannot provide specific performance metrics. However, we are closely monitoring feedback from influencers and users, which indicates heightened market expectations. (Answered by CEO He Jin Yong)
Q: Are you incorporating feedback from global users into the development of Crimson Desert? A: Yes, we are applying feedback from users who experienced our demos, particularly regarding gameplay challenges and console optimization. We are making improvements based on this feedback to enhance the gaming experience. (Answered by CEO He Jin Yong)