In This Article:
Release Date: February 10, 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) reported a 2.7% year-over-year increase in operating revenue for 2024, reaching 342.4 billion won.
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Net profit for 2024 increased significantly by 301.3% year-over-year, reaching 61 billion won.
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The company successfully launched Black Desert China, contributing to regional expansion and performance growth.
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PearlAbyss Corp plans to launch Crimson Desert in Q4 2025, with aggressive marketing strategies and participation in global game events.
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The company is preparing new content and updates for Black Desert, including the introduction of the Adania region and new PVP content, to enhance user engagement.
Negative Points
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Despite the launch of Black Desert China, the performance in China is not as high as new titles due to the game's long presence in the market.
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Operating expenses increased by 5.3% quarter-over-quarter in Q4 2024, driven by higher labor and advertising costs.
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The company reported an operating loss of 12.1 billion won for 2024, although the deficit decreased year-over-year.
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There is uncertainty regarding the exact number of developers working on future projects beyond Crimson Desert, indicating potential resource allocation challenges.
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The anticipated package price for Crimson Desert may be high, aligning with AAA global game pricing, which could impact market competitiveness.
Q & A Highlights
Q: Can you provide insights on the revenue contribution from Black Desert China and a breakdown of revenues and traffic? Also, could you elaborate on the financial profit and loss, which seems to be 53 billion won? A: Black Desert China started official service in October last year, and its performance aligns with our internal predictions. Despite being an older game, it continues to perform well globally. We aim for stable long-term service in China. Regarding the financial P&L, the 53.3 billion won profit was influenced by FX rate increases and equity valuation of investment companies, evaluated annually.
Q: What are your plans for marketing Crimson Desert, and how do you anticipate pricing it compared to other AAA games? A: We are in the final stages of Crimson Desert's development and plan aggressive marketing, starting with GDC in March. We will participate in various global events and showcase a new demo build. The game is expected to meet AAA quality standards, and we are considering a price point similar to other high-quality games.