Pearl Abyss held it's quarterly earnings call for the second quarter of 2022 yesterday. The South Korean game maker experienced a 2.8% increase in revenue compared to the first quarter of the year. Year-over-year, revenue increased by 6.2%, up to ₩94 billion.
Taking into account the strengthening U.S. dollar, Pearl Abyss revenue declined by $3.3 million (-4.4%) compared to the first quarter of 2022 and $6 million (7.7%) compared to Q2 2021.1
The profits for the second quarter look a little strange. For the second year in a row, Pearl Abyss ran an operating loss in the second quarter of the year. The executives on the call explained that the company runs an employee incentive program in which Pearl Abyss spent ₩8 billion, including ₩7.5 billion in treasury shares.
The net profit of ₩32 billion, or 34% of the company's revenue, seems unusual considering the operating loss. Pearl Abyss explained that ₩18 billion of the profit came from tax refunds. The figures also were related to financial gains due to currency valuations.
For the second quarter in a row, Black Desert revenue increased, this quarter by 4.8%. Year-over-year, Black Desert revenue increased 5.8%. The Black Desert IP usually gains revenue when Pearl Abyss takes over publishing in a region. With the company now publishing in South America, Pearl Abyss now publishes Black Desert Online globally.
The intellectual property experiencing the biggest declines is EVE Online and EVE Echoes. EVE revenue declined by ₩600 million compared to the first quarter, or 3.3%. When converted to U.S. dollars, the decline was $1.5 million, or 10%. Going back to Q2 2021, EVE IP revenue declined year-over-year by ₩500 million, or 2.8%. But when won is converted to dollars, the quarter-over-quarter decline was $1.5 million (-10%). Compared to the second quarter of 2021, the decline was $2.5 million, or 15.6%.
The big EVE news was the disclosure Pearl Abyss plans on opening a new server for Chinese users in Q3. A dev blog was released on 15 July with the details on the move, with a better translation posted on the EVE Online sub-Reddit a day later. If the move works in China, would CCP start a second server in the rest of the world?
The only other news was the lack of updates on Pearl Abyss' upcoming titles. The investment analysts did hear that the company plans on releasing an in-game video trailer sometime before the end of the year for Crimson Desert. Other than that, the company may not launch another game until 2023.