Tuesday, January 3, 2023

Looking Back At Pearl Abyss' Stock Price In 2022

With two financial posts about Cloud Imperium and Star Citizen under my belt, I thought I should turn my attention to something related to EVE Online. The next Pearl Abyss earnings call isn't until February and Pearl Abyss Iceland likely won't submit its paperwork to the Iceland Revenue and Customs office until April at the earliest. That leaves looking at Pearl Abyss' stock price for 2022.

Pearl Abyss stock price, 3 Jan 22 to 3 Jan 23, from Wall Street Journal

I knew Pearl Abyss was not doing well financially going into the year. Operating revenue had dropped 17.4% down to ₩403.8 billion from 2020 to 2021. In the 4th quarter of 2021, the company used a non-gaming subsidiary, Pearl Abyss Capital, to buttress its earnings for the quarter and for the year. In March 2022, Chief Operating Officer Jin-young Heo also became Chief Executive Officer, replacing Kyung In Jung.

Overall in 2022, the price of Pearl Abyss stock on the Korean Securities Dealers Automated Quotations (KOSDAQ) fell by 68.6%, from ₩133,600 per share on the first day of trading on 3 January to the closing price on 30 December of ₩41,950. That equates to a market cap loss of ₩5.9 trillion, or $4.6 billion using today's conversion rate.

The largest single day price drop occurred on 27 April when the stock fell 24.3%, from ₩98,000 to ₩74,200. Some die hard EVE players might believe the price drop had something to do with CCP announcing a 33% price hike for one month of game time on 22 April. The reason was far more rational.

On 26 April, Pearl Abyss finally launched Black Desert Mobile in China. After a brief time in the top spot, BDM began a descent off the charts. Pearl Abyss' stock price followed, as the introduction of the game into the Chinese market was Pearl Abyss' big hope for increasing revenue during 2022.

Not a very happy story for Pearl Abyss shareholders last year. But releasing a new game should help the stock bounce back. Our overlords in Anyang will release Crimson Desert in 2023, right?

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