Pearl Abyss (263750) Q2 2024 earnings summary

Executive summary

• Q2 2024 featured the 10th anniversary of Black Desert, new content for Black Desert and EVE, and community events, with EVE Online launching the Equinox expansion and preparations for Black Desert China and Project Awakening.

• Revenue for H1 2024 was ₩167.2 billion, with operating loss of ₩5.2 billion and net profit of ₩21.9 billion, showing a turnaround from the previous year's net loss.

• Main revenue drivers were 'Black Desert' (₩126.7 billion, 76.2%) and 'EVE' IP (₩39.6 billion, 23.8%).

• The company maintains a strong cash position and low leverage, with a debt ratio of 63.5%.

Financial highlights

• Q2 2024 revenue was KRW 81.8 billion, down 4.2% QoQ and up 4.3% YoY; H1 2024 revenue was ₩167.2 billion.

• Operating loss for Q2 was KRW 5.8 billion, reversing from profit QoQ; H1 operating loss was ₩5.2 billion, improved from FY2023.

• Net profit for Q2 was KRW 9.1 billion, down 28.9% QoQ but a YoY turnaround; H1 net profit was ₩21.9 billion.

• Black Desert IP revenue was KRW 60 billion (down 10.2% QoQ); EVE IP revenue was KRW 21.6 billion (up 20% QoQ).

• Cash and equivalents stood at ₩237.4 billion as of June 2024.

Segment performance

• Black Desert and EVE remain core revenue drivers, with Black Desert marking its 10th anniversary and EVE Online's Equinox expansion driving user engagement.

• Game business accounted for 99.4% of revenue; online games led with ₩119.8 billion, mobile ₩38.9 billion, and console ₩7.6 billion.

• Regional revenue split: Domestic 18%, Asia 26%, North America/Europe 56%.

• PC platform continues to dominate revenue share, followed by mobile and console.