As for NFTs and the metaverse, we see significant potential for open-world MMO games (i.e., Eve IP-based games, DokeV). In addition, we anticipate the launch of more new titles this year, including a Black Clover IP (3Q22) and Black Desert PC in China (TBD). DokeV, a Pokemon -inspired, open world game coming from Korean studio Pearl Abyss, has pretty much fallen off the video game radar in 2022. We project 3.5mn copies sold in 2022, with 2022E/2023E revenue (incl. Crimson Desert should be released in 4Q22. daily revenue of KRW3.0bn immediately after launch and KRW2.2bn in 2022 (KRW114.3bn in annual royalty income). Developer: Pearl Abyss Publisher / distributor: Pearl Abyss Download. ![]() ![]() Expectations are high, as the title has been selected as the most anticipated game for 2022 by the popular Chinese gaming portal 1717. High expectations for new titles, metaverseīlack Desert Mobile is scheduled to launch in China in April after its CBT in March. For 1Q22, we expect Pearl Abyss to report operating loss of KRW0.8bn due to falling revenue from existing games amid a lull in new game releases. Pearl Abyss Capital asset valuations/disposal gains of KRW30.0bn catapulted profits factoring out the one-offs, OP would turn negative. The K-Pop soaked trailer is filled with highly detailed environments, eye-popping particle effects. Revenue from Black Desert and Eve IP declined 6% QoQ and 2% QoQ, respectively. Take the GamesCom trailer for DokeV for example which has already garnered over 7 million views. ![]() That said, we are concerned about the potential success of Black Desert Mobile (China) and Crimson Desert being reflected in market consensus and the company’s downward trajectory of profitability.ĤQ21 results beat consensus OP would turn negative if one-offs factored outĤQ21 revenue/OP came in at KRW118.0bn (+22.4% QoQ, +11.7% YoY)/KRW25.7bn (+151.6 QoQ, +28.8% YoY), above the market consensus by 6.7%/30.6%. Our major investment points, which include a string of major game releases in 2022 and promising new businesses (i.e., metaverse), are still valid. We revise down 2022E OP by 25.5% to reflect the delayed launches for Black Desert Mobile (China) and Crimson Desert, but 2023E OP is unchanged. We maintain BUY on Pearl Abyss but lower our TP by 7.6% to KRW120,000. Maintain BUY, lower target price 7.6% to KRW120,000
0 Comments
Leave a Reply. |