I am Kim Yeun from Pearl Abyss IR team. First of all, I express my deepest gratitude to the analysts and investors in and out of Korea for taking part in the 2024 Q1 Pearl Abyss earnings presentation, despite your busy schedules. Before elaborating on today's business results, I would like to ask for your understanding regarding the following. The financial and business results contained in today's earnings release have been prepared for the convenience of investors and is subject to change depending on the final closing of our books. In addition, the accuracy and completeness of the financial and business results in the earnings results material are not guaranteed, and the company is not obliged to give updates of the accounts given after this date. Please take these factors into consideration.
We have here with us at the earnings presentation today, Pearl Abyss CEO, Heo Jin-young, CBO, Kim Gyeong-man , and CFO Cho Seok-woo. We will first hear the business performance presentation highlights from CFO Cho Seok-woo and then engage in a Q&A session.
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Greetings, everyone. I am Pearl Abyss CFO, Cho Seok-woo. Thank you once again for taking part in our company's earnings conference call despite your busy schedules. First, I will cover Q1 major management activities and achievements. Black Desert and EVE, based on the accumulated live service know-how, has been continuing consistent performance and has started communication for new titles, including Project Awakening. Black Desert has shown diverse contents including Guild League, War of the Roses pre-season in Q1, and has focused on strengthening PVP and RVR. Through this, we were able to heighten the inherent fun of MMORPGs, stimulate the users' growth needs, and bring about good responses. In particular, although there weren't large-scale updates in Q1, and thus only a low degree of marketing, based on our accumulated capabilities, we were able to achieve consistent performance.
In the case of console, we were able to heighten user satisfaction by improving various system and user convenience, including Great Ocean renewal and item simplification. Apart from this, through new class Scholar update, revenues and DAU all increased, leading to stable performance at the level of the previous quarter. In case of mobile, with launching of the new class Letanas, and large scale existing content revamp, including Great Desert content renewal, and improvement of Black Spirit Mode, we provided a better gameplay environment and content. In addition, the user indicators which improved after the December ball, have continued to be maintained and brought about stable performance. EVE Online, despite no large-scale content after the Havoc update, which occurred in the previous quarter, brought about stable performance. In addition, we disclosed 2024 development roadmap, maintaining user expectations, and continued EVE Vanguard playtest, and started preparations to expand revenues.
Apart from this, we took part in the GDC 2024 and officially disclosed Project Awakening, our blockchain-based project, and are preparing to enter into new markets.
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Next, I will cover our company's Q1 results. Q1 operating revenue posted KRW 85.4 billion, a 1.2% QOQ increase, and operating profit and net profit each posted KRW 600 million and KRW 12.8 billion respectively, turning a profit.
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I will cover operating revenue in more detail. First, I will explain about operating revenue of major IPs. Operating revenue from Black Desert IP in this quarter posted KRW 66.8 billion, an 11% QOQ increase. EVE IP operating revenue posted KRW 18 billion, and decreased 9.5% QOQ. In case of operating revenue breakdown by region, it recorded 18% for Korea, 29% for Asia, and 53% for North America and Europe. Regarding operating revenue for platforms, 69% was for PC, 26% for mobile, and 5% for console.
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Next, I would like to cover operating expenses. Q1 operating expenses posted KRW 84.9 billion, a 5.6% QOQ decrease. In case of labor, it posted KRW 46 billion, and due to factors such as increase in the number of employees and salary increase, it increased 13.2% QOQ. For your reference, Q1 end total number of employees stands at 1,351. Developer headcount is 786 and take up 58% compared to the total number of employees. In case of commissions, it posted KRW 17.1 billion, a 2% drop QOQ, and in the case of advertising through efficient marketing, it posted KRW 5.6 billion, a 30.3% decrease QOQ.
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Lastly, I would like to cover Q2 and major highlights for the latter part of the year.
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In Q2, Black Desert along with diverse content will commemorate our 10th year of service and plan to hold large scale user events. In particular, with the 10th anniversary, we are planning to hold a ball in France, which was the motif of the city of Heidel within Black Desert. Through this event, we plan to further strengthen communication with global users. In addition, in the case of War of the Roses, which had a pre-season in the previous quarter, based on the diverse feedback from users, we will showcase an upgraded version. In particular, we received positive reviews about the fact that it broke free from existing PVP rules and the form was refreshing. So we believe that we will have good results since the user expectations have been heightened.
Apart from this, we plan to disclose part two of Land of the Morning Light, which received many positive reviews with new adventures which were quite different from the past, and the second part will be named Land of the Morning Light Part 2: Seoul. We will showcase this in the summer, and we expect that users can once again enjoy diverse adventures. For Black Desert console, through continuous improvement of various content and convenience updates, we will work hard so that consistent user indicators will be continued. In addition, we will drive development of versions for next generation devices so that we can provide better quality and improved game environment to users. In the case of mobile in April, new hunting ground was added to Land of the Morning Light in April and recently launched new quest, Askeia.
In addition, expectations are high for license acquisition in the case of Black Desert China service. We are making preparations so that we can quickly provide official service after the license is issued. EVE is planning to launch the fourth new expansion pack, Equinox, in June. In addition, EVE Vanguard, which has monthly tests, will launch new maps so that it can provide a richer FPS experience. We will continuously work to improve the quality of the game and game playing experience based on user feedback until launch so that we can strengthen the EVE ecosystem. We are smoothly progressing with preparations for new titles to secure new growth engines. First, we plan to have a large scale test in May for EVE IP based on blockchain platform, Project Awakening. In addition, we plan to have regular tests within the year and polish and perfect the game until launch.
In the case of EVE Galaxy Conquest, after soft launching for certain areas late last year, we have been reflecting the user feedback and are continuously upgrading the game. In addition, we plan to expand the soft launching regions in May and receive more diverse user feedback. We will continuously perfect it until the launching and make preparations so that we will have positive results. For Crimson Desert, with development in its last stages, we plan to start full-fledged marketing. First, we will participate in Gamescom, the biggest global game event, and plan to hold demos for users. If we had focused on partner-focused marketing until last year, this year we are planning diverse types of marketing which can enable users to experience the game and heighten expectations about the game.
Black Desert celebrates 10th year of service this year, so including EVE IP with more than 20 years, now we are a company which has two IPs which have been maintained for more than 10 years respectively. In the game market, which has not only many market changes, but also many changes in the regulations, we have secured solid basic fundamentals through consistent IP management capability that we have accumulated until now, and we are also confident that we have the ability to grow new titles, including Crimson Desert, from mid to long term. In addition, with the completion of the development of Crimson Desert, the development speed of latter titles, including DokeV, is accelerating. We will do our best to communicate the development progress consecutively. To be a better company, all employees from the CEO are doing their best. We ask for your continued interest and support. Thank you.
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With this, we will conclude Pearl Abyss 2024 Q1 earnings release presentation and start the Q&A session.
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Now, Q&A session will begin. Please press star one, star and one if you have any questions. Questions will be taken according to the order you have pressed the number star one. For cancellation, please press star two, that is star and two on your phone.
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The first question will be provided by Jin-gu Kim from Kiwoom Securities. Please go ahead with your question.
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Thank you very much for the opportunity. I have two large questions. My first question actually refers to your new titles. Do you have any plans to release any in-game footage for Crimson Desert additionally? Can you give us some color on the timeline if possible? Can you also let us know if you are planning to release more in-game footage for DokeV as well? My second question is about your expectations about when do you think Black Desert PC China service will be open. I know it's not easy to make predictions, but if you can give us a timeline that you're thinking of, can you also give us some of your thoughts on what kind of financial results you are expecting? Thank you very much.
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Thank you very much. I would like to answer your question about the current situation for Black Desert. For Crimson Desert.
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Regarding Crimson Desert, we are actually working hard so that it can be completely optimized and for us to actually perfect the game. We are smoothly going ahead with the final stages. We are receiving feedback from customers. We also are targeting Gamescom for our marketing. We are quite active in this area.
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We know that it might not be enough for us to just show you some footage from the game. That is why we are planning to have some demos so that our users can actually participate and experience the game.
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Starting with Gamescom, we plan to participate in diverse global game events like G-STAR so that we can expand our Crimson Desert marketing activities until we launch and to strengthen those activities. If needed, we will of course, release some of the footage from the game.
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Regarding the timeline, I know that many of you are very curious. In the process of our marketing, we will consecutively give you more information about more detailed timeline, including our pre-signups or pre-registrations.
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For your reference, at this Gamescom, we plan to concentrate on letting the users know about our game and to heighten their expectations. We plan to focus on that. Regarding the pre-registrations and our launch schedule, we are planning to do so with an opportune event that can actually lead to many pre-sales.
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According to the different stages of marketing, we plan to give you more information consecutively so that expectations can become more heightened, and so that it can lead to many pre-sales. We are making those preparations. For DokeV, as you probably know, through our BlackSpace Engine, we are heightening our efficiency and productivity. However, I want to tell you that because we are currently in the latter stages of finishing off the development of Crimson Desert, we will be able to, and we are able to put in the extra manpower into the development of DokeV. However, regarding the footage that you've asked for DokeV, we are thinking of actually showing you the footage if possible. We are actually internally discussing those possibilities.
But as I mentioned, because we are focusing on Crimson Desert now, in order for us to showcase it to the public, we will probably find an opportunity after it is released. We are well aware that there are heightened expectations in the market about DokeV, so we will do our best to give you more information about DokeV as well.
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I would like to cover what is currently going on in China related to Black Desert license. Regarding a Black Desert Chinese license, we have submitted all the relevant documents to the authorities, and we are waiting for their response. Currently, internally, we have high expectations about issuing of the license. So we are doing our best so that we can provide the service as soon as the license is given.
We are currently working very close with our partners so that we can have the pre-preparation work done for the game and the service. For Black Desert China, we are actually preparing for it as a global version that we are currently servicing. In order for our Chinese users to enjoy the rich content of our global version, as soon as it is launched, we are going to showcase many different contents very quickly. Regarding the expected results, for Black Desert China, we have already a great deal of service experience through our mobile service. So we have many data regarding the Chinese users and the Chinese market, and we have analyzed the data, so we are expecting very good results.
We have had the answers from CEO Heo Jin-young and CBO Kim Gyeong-man. We will take the next question. The following question will be presented by Jae-min Ahn from NH Investment & Securities. Please go ahead with your question.
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Thank you very much for the opportunity. I am Jae-min Ahn from NH Securities, and I have several questions. I am curious about what is your marketing budget for Crimson Desert. I know it is a AAA game, so I believe that the amount of marketing will probably be sizable. Can you give us some numbers? Do you have any plans to have any exclusive contracts or publishing contracts with Sony or Xbox? Because to my knowledge, I think Shift Up recently had that kind of arrangement with Sony, which actually lessened their marketing burden and heightened their global recognition. My next question is about your headcount. I know that you have had headcount increase following Q4, and you have mentioned that you have 30+ headcount increase for this quarter. Do most of the increased headcounts go toward working for Crimson Desert?
What kind of work do they do?
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Thank you very much for your questions. I would like to elaborate on the marketing budget for Crimson Desert. Crimson Desert has been developed as a AAA game. Regarding our marketing budget, it has already been included in our business plans so far. It is at a certain level, and I do not think you need to be concerned about the level of our marketing budget. We already have a lot of the fan base at this point. Our marketing, I believe, will be very efficient. We already have accumulated vast amount of experience with Black Desert, with diverse partners and overseas partners as well. We have had a lot of these cooperation and collaborations via diverse activities, and we are currently in discussion with many of them.
As soon as the marketing begins, I am sure that we can reap the benefits through these relationships and have very efficient marketing. Regarding the exclusive partnerships that you have asked about, yes. Actually, we are thinking of diverse ways of collaboration in depth through many methods. We are actually discussing many opportunities in detail, but related to the exclusive partnerships, there are many considerations to have. That is why we do not have any confirmed cases yet. Of course, we will take into consideration our company's benefits or profits as the first priority. We will make the best choice that can lead to great results in the market. You also asked us about our employees, and we actually have a very efficient way of managing and operating our staff numbers.
We have seen some increase in the numbers, but according to the different situation, they can actually be utilized for development and also for other roles if they are needed. Regarding the development of numbers that you have actually asked about, in diverse development processes, we have automation, and we have made these processes very efficient. Even though we are simultaneously developing many titles at once, we have the strength to have high efficiency in these operations.
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It was our CEO, Heo Jin-young, who answered your question. If you have any questions, please press star and one on your phone. It seems that there are no other questions. With this, we will conclude Pearl Abyss 2024 Q1 earnings release presentation. Thank you.