Early this morning (or yesterday in the U.S.), Pearl Abyss held an earnings call covering the final quarter of 2021. Hang on folks, because everything just got a little more complicated. By complicated, I mean even some, if not all, the analysts from the investment firms were taken by surprise. I'll try to make some sense of what I heard.
|From the Q4 2021 Pearl Abyss Earnings Call|
At first glance, the numbers for the fourth quarter were great. Pearl Abyss earned ₩118 billion ($98.5 million), or a 22.4% increase in operating revenue compared to Q3 2021. Year over year, revenue increased by 11.7%. The company bounced back strong from the second quarter where PA posted an operating loss. The ₩25.7 billion operation profit was a 28.5% increase compared to the final quarter of 2020. Very good numbers, right?
The game industry is rapidly changing. Within the games, there was consumption, and goods or item accumulation that just happened limited to the virtual world. But now times have changed and now the values that users have created has meaning, even outside of the virtual worlds and are acting as assets.The need to create value by playing games actually existed even before play2earn -- which is a buzzword nowadays -- has existed. We can see many trends that happened from the past. For example, with the development of video games in the early 2000s there was the wild popularity of eSports. And after the distribution of smartphones we saw more game streaming broadcasts that took place. And we also see people that are actually having a job that are done through playing games and they are making a living and they call this their job. So all of this attests to the need to create value though games.Likewise, though the development of technology, times are changing from just the passive state of playing simply a game that has been given, but now we have users that actively participate and the structure has changed so they can also create profits through this.In particular, we believe that blockchain technology will accelerate this trend. To these changes, our company has been researching different technologies during the past years and have reviewed the possibility of introduction.
We will shortly communicate with you in different stages about what we are currently preparing for. Our company and CCP Games both have operated MMOs for a long time and we do have the knowhow to maintain and manage a sustainable economic system. So we are confident we can create a stable blockchain ecosystem.
After an enthusiastic opening on the KOSDAQ, the price of Pearl Abyss stock fell 2.42% from the stock's opening price of ₩98,000 down to ₩92,700. On 10 November 2021, the day of the Q3 2021 earnings call, the stock closed at ₩114,900. Pearl Abyss stock had finished 2021 at ₩138,300.