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EsportsEdited Transcript of 263750.KQ earnings conference call or presentation 12-May-20 11:00pm GMT
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Edited Transcript of 263750.KQ earnings conference call or presentation 12-May-20 11:00pm GMT

Q1 2020 PearlAbyss Corp Earnings Call

ANYANG Jul 13, 2020 (Thomson StreetEvents) — Edited Transcript of PearlAbyss Corp earnings conference call or presentation Tuesday, May 12, 2020 at 11:00:00pm GMT

TEXT version of Transcript

Corporate Participants

* Kyung In Jung

Pearl Abyss Corp.- CEO & Director

* Seok Woo Cho

Pearl Abyss Corp.- CFO

* Young Heo Jin

Pearl Abyss Corp.- COO

Conference Call Participants

* Dong Hwan Oh

Samsung Securities Co.

Ltd., Research Division – Analyst

* Jingu Kim

KTB Investment & Securities Co., Ltd., Research Division – Research Analyst

* Jong Hwa Sung

eBest Investment Securities Co.Ltd, Research Division – Analyst

* Stanley Yang

JPMorgan Chase & Co, Research Division – Analyst

* Taewon Kim

UBS Investment Bank, Research Division – Director and Research Analyst of Internet and Gaming


Operator [1]

(foreign language) Good morning and good evening.First of all, thank you all for joining this conference call, and now we’ll begin the conference of the fiscal year 2020 first quarter earnings results by Pearl Abyss.(Operator Instructions) Now we should commence the presentation on the fiscal year 2020 first quarter earnings results by Pearl Abyss.

Unidentified Company Representative, [2]

[Interpreted] Greetings.

I am [Dong Jin Gyu], head of the finance team at Pearl Abyss.First of all, I express my deepest gratitude to the analysts and investors in and out of Korea for taking part in the 2020 Q1 Pearl Abyss Earnings Presentation despite your busy schedules.

Before elaborating on today’s business results, I would like to ask you 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, so please take these factors into consideration.

We have here with us in the earnings presentation today our CEO, Jung Kyung In; CBO, [Kim Gyeong-man]; COO, Heo Jin Young; and CFO, Cho Seok Woo.We will first hear our business performance presentation highlights from our CFO, Cho Seok Woo, and then engage in a Q&A session.

Seok Woo Cho, Pearl Abyss Corp.- CFO [3]

[Interpreted] Greetings, I am Pearl Abyss’ CFO, Cho Seok Woo.

Once again, thank you for taking part in our company’s earnings conference call despite your busy schedules.

I would like to walk you through our 2020 Q1 major business highlights and performance.

First, I would like to explain about the operating revenue trend of Black Desert.

For Black Desert, revenues increased for all platforms.In the case of Black Desert console, we adopted cross-play so that Xbox and PlayStation players could play the game together.And we had more than a 250% increase of new users and more than 350% growth of return users, leading to a great improvement in user index in March.

Due to this, console revenues are continuously maintaining good performance and is playing a role as our stable cash cow.Black Desert Online due to revenue growth in Korea, North America and Europe recorded around 42% growth Q-o-Q based on user payment.In particular, the user payment grew more than 80% in North America and Europe and led the increase of operating revenue.

However, due to the long duration of the game and life cycle increase, the revenue deferral period got longer and revenue grew 22%.

Leer más In the case of Black Desert Mobile, with the second year anniversary in Korea, first year anniversary in Japan and 100-day anniversary for global, we have differentiated updates and events for different regions.Global posted the highest revenues in the early days after launching and has entered into stabilization phase.And through consistent user index, we established the platform for long-term service.

EVE Online is also maintaining stable performance.

EVE Online, which was known as the most difficult MMO game, had the most important challenge, which was to motivate interest of early users.Using Black Desert know-how and experience from EVE Online, many improvements were made, and accordingly, we saw a meaningful increase of new users.

EVE Online, which is in its 17th year of launching shows through many indexes that a well-made MMO game has a very long life brand value.According to the performance of Black Desert and EVE Online, our global revenues increased 3% points Q-o-Q and contributed to 76% of the total.

At the same time, we prepared diverse services for us to expand our IP profitability.Shadow Arena, which is an action battle royale game based on our Black Desert world view has conducted a total of 4 tests until the final test in April.

For each test, there were not only professional testers, but we also listened to the feedback of regular users, streamers and improved the game playing experience.We heard reviews that the game became more complete and improved after each test.In particular, after the last test, there was not only the active participation of global users but a market increase in the people streaming Shadow Arena as a spectator game.

EVE Online service in China that we have been preparing for a long time started in earnest on March 12 when we acquired approval.Since we have made many preparations for a long time, despite the fact that with the COVID-19 outbreak, normal commute was difficult in China and Iceland, we were able to conclude most of the preparations in March and start service in April.

In the case of Black Desert service in Japan, with the ending of our publishing contract with GameOn, we prepare to change into self-publishing from April.

Based on our self-publishing experience in Russia and Korea, we will have active communication with Japanese users and come up with localized, optimized marketing so that successful publishing can be possible.In addition, through cooperation with SKT, we participated in CES 2020 and demonstrated Black Desert game streaming.

Next, I would like to cover our company’s Q1 financial results.This quarter’s operating revenue posted KRW 133.2 billion, a 14.2% increase Q-o-Q.Operating profit posted KRW 46.2 billion, a 28.3% increase Q-o-Q; and net profit posted KRW 48.3 billion, a 0.4% increase Q-o-Q.

Operating profit ratio and net profit ratio each posted 34.7% and 36.3%, respectively.

I would like to cover our operating revenue in more detail.First is the operating revenue for each IP.The operating revenue from Black Desert IP in Q1 posted KRW 108.6 billion, a 15.9% increase Q-o-Q.This was due to the growth of operating revenue in all platforms and in all regions.

In the case of EVE IP, on the back of sound, thick, long-term user base and a new user inflow, operating revenue of KRW 14.3 billion, a 15.7% increase Q-o-Q was posted.

In the case of operating revenue for different regions, with the sound console revenue according to the adoption of cross-play, reflection of the Black Desert Mobile global revenues in all quarters and a great increase of Black Desert Online North America and European revenue, North America, Europe and regional contribution was 42%, a 10% point increase Q-o-Q.And the contribution of Korea was 24%.Asian region was 34%, so there was a 3% and 7% decrease Q-o-Q, respectively.In Q1, 76% of our operating revenue took place overseas.

Next is the operating revenue for platforms.

In Q1, 35% of operating revenue took place on the PC platform, 54% on mobile and 11% on console.We had revenue growth in all platforms Q-o-Q in online, mobile and console, but the PC revenue grew relatively more, so that is why mobile and console contribution relatively decreased.

Next, I would like to cover operating expenses.Q1 operating expenses posted KRW 87 billion, a 7.8% increase Q-o-Q.In the case of labor costs, with the removal of one-off temporary accounting expenses for closing, which took place in the previous quarter for expenses, including severance package expenses, posted KRW 32 billion, a 3.2% drop Q-o-Q.

Labor costs compared to revenues was 24.1%.

For your reference, the numbers of employees are 1,246 headcount, a 14 headcount increase Q-o-Q, and the numbers of employees in development are 735, 59% of the total employee number.

In the case of commissions, it posted KRW 32.7 billion, an 81.8% increase Q-o-Q.This increase was caused by the temporary one-off adjustments which took place in the previous quarter, Q4, following the console revenue accounting standard change, and it was normally reflected in this quarter in Q1 as net amount.The ratio of commissions compared to revenues is 24.6%.On the back of efficient marketing execution, advertising decreased 43.7% Q-o-Q, posting KRW 9.4 billion.

Lastly, I will cover Q2 major highlights.With the profitability expansion of our current IP, we will continue to develop new games to secure new IP.

First, Shadow Arena, which will soon be released after early access on May 21, will start official global service.

Since we improved game experience through 4 tests, we will work hard so that it can be a game loved by many users.In addition, we (inaudible) the gaming experience continuously after the launch so that it can garner solid financial results.

When the PC online launch’s date is completed, we are planning to expand into the console platform within this year.EVE Online China, after around 1 month of soft launching in early April, was officially launched on April 27.Since it is still in the early stages of launching, it is not easy to come to a conclusion now, but seeing the index that is very high and goes beyond our expectations with the active participation of existing users and inflow of new users, we believe that we have a basis for good performance.

In addition, as aforementioned, we are targeting both revenue and profitability through expansion in successful self-publishing of Black Desert Mobile.

Through localized marketing and collaboration for Japan, we will work hard so that we can satisfy existing users as well as new users.While we have been strengthening external expansion and profitability through service expansion, based on our sound financial performance, we are continuing new game development.In the case of Red Desert (sic) [Crimson Desert], we are targeting 2021 Q4 for launching and for DokeV 2022 and for PLAN 8 2023, respectively.However, with the COVID-19 outbreak, large-scale events that could lead to sufficient marketing effects have been canceled, and accordingly, we are keeping an eye on the situation for the open events that we had previously planned targeting E3 and are adjusting our schedule accordingly.

Going forward, everyone here from the CEO to all the employees are all doing their best.We look forward to your support and interest.Thank you very much.

Unidentified Company Representative, [4]

[Interpreted] With this, we will conclude Pearl Abyss 2020 Q1 Business Results Presentation and start the Q&A session.

Questions and Answers

Operator [1]

(foreign language) (Operator Instructions) (foreign language) The first question will be given by Stanley Yang from JPMorgan.

Stanley Yang, JPMorgan Chase & Co, Research Division – Analyst [2]

[Interpreted] I would like to ask some questions about your new titles.

For Crimson Desert, you have mentioned, I think, for the first time that you are targeting Q4 of 2021, and it seems to us that it may be a little bit later than we had thought.And for the management, was this a delay from your initial schedule? And if so, can you tell us the reason why?

My second question is about your other ways of increasing revenue going forward because in — it will have — we have still 1.5 years until 2021, the period that you mentioned.So regarding other games such as games using EVE IP or Shadow Arena, are you planning to have other maybe even smaller games that will be launched before? I know that for this quarter, you had an increase in your revenues for Black Desert Mobile, but I think, overall, there will be a slight decrease in the revenues for Black Desert Mobile going forward.So can you say that in the 1.5 years that is left, you are going to maintain your revenues? Or do you think that there will be other factors that will lead to an increase in your operating profit or your quarterly revenues? And can you tell us your forecast before your new titles are released?

Kyung In Jung, Pearl Abyss Corp.- CEO & Director [3]

[Interpreted] So to answer your first question about the schedule for Crimson Desert, actually, we have shared with you the schedule that we believe will be feasible going forward because we are developing the game as we speak.And the reason why I mentioned Q4 next year is because for Crimson Desert, DokeV and PLAN 8, we are simultaneously developing it for the console and PC platform, and there are numerous console platforms that we are developing it for.

So that is why we need a 6-month lead time to have the development for all the different platforms.So that is why we mentioned Q4 of next year.

So actually to answer your second question regarding any new projects, excluding Crimson Desert or before Crimson Desert is officially launched, as you know, we had the global launching of Black Desert Mobile late last year.And apart from China, now we have the Black Desert IP in all areas around the world for mobile, PC and console.

So as you saw for the results in Q1 for Black Desert, we had growth in all platforms regarding Black Desert IP.And we believe our priority would be to expand our Black Desert IP and make it the driving factor.

And as you probably heard, we had Shadow Arena, our new title, which had early access opening and will open on the 21st of May, and we plan to have it into the console platform as well.There is also EVE China that was opened by CCP Games, and there is also EVE: Echoes that is being developed by NetEase for us to have it present on the mobile based on our EVE Online IP.

So we plan to have these new titles that will be developed on schedule and be released on schedule and have our Black Desert IP that will grow and that will lead our revenue growth.

Unidentified Company Representative, [4]

[Interpreted] It was our CEO, Jung Kyung In who answered the question.

Operator [5]

(foreign language) The following question is by Oh Dong Hwan from Samsung Securities.

Dong Hwan Oh, Samsung Securities Co.Ltd., Research Division – Analyst [6]

[Interpreted] I have 2 questions.First, we saw that your revenues for Black Desert had grown.And do you have plans to have self-publishing in Black Desert PC for Korea or North America going forward? And if so, when? Second question is about Shadow Arena.

And can you tell us if you have a specific pre-marketing budget?

Kyung In Jung, Pearl Abyss Corp.- CEO & Director [7]

[Interpreted] Regarding your first question, it is true that we are working with publishers in North America and Europe, but I don’t think it is right to mention our plans going forward at this time because when it — when our contract will — when we are talking to our partners, we will actually see what happens about the elongation of the contract.So I believe that this question is not proper for me to answer at this time.Thank you.

Unidentified Company Representative, [8]

[Interpreted] So with Shadow Arena, you asked about our pre-marketing budget.And we are going to have early access with Steam on the 21st of May.

But it is our new challenge in a new genre, so we believe that rather than having a very big marketing budget, we are going to improve on having a very good gaming experience.So we’re going to look at the indexes and look at the appropriate budgets for different regions and have the appropriate marketing for different users.

Unidentified Company Representative, [9]

[Interpreted] The answers were provided by our CEO, Jung Kyung In; and CBO, [Kim Gyeong-man].

Operator [10]

(foreign language) The following question is by [Yun Il Jong] from Shinyoung Securities.

Unidentified Analyst, [11]

[Interpreted] We see that in Q1, your advertising expenses greatly decreased, and I believe that since there was less demand, maybe there was a decrease of actually the cost going into marketing so that is why there was this decrease.And going forward, do you think, excluding your marketing budget for new titles, you are going to have a decrease in advertising costs like you did in Q1?

Seok Woo Cho, Pearl Abyss Corp.

– CFO [12]

[Interpreted] You asked about your — our advertising costs, and in Q1, it was KRW 9.4 billion.So there was a decrease of 43.7% Q-o-Q.And we are going to actually engage in efficient marketing going forward as well.And we saw some global off-line events that were canceled, however, we are going to still engage in effective and efficient marketing going forward.So although there might be a temporary increase in advertising because of our new title launchings, we are going to focus our marketing efforts, so they are very effective and efficient.

Kyung In Jung, Pearl Abyss Corp.- CEO & Director [13]

[Interpreted] And just to add, you mentioned in your question that because of the outbreak of COVID-19 maybe the marketing costs were not as high as before, but we saw the Black Desert Mobile global launching late last year, and we already had the launching of the IP in different regions and platform already.So we had the large amount of marketing costs that were actually given at that time.So we are going to maintain our stance as having very efficient marketing costs in providing our live services going forward.

Unidentified Company Representative, [14]

[Interpreted] The answers were given by our CFO, Cho Seok Woo; and CEO, Jung Kyung In.

Operator [15]

(foreign language) The following question is by Sung Jong Hwa from eBest Investment Securities.

Jong Hwa Sung, eBest Investment Securities Co.

Ltd, Research Division – Analyst [16]

[Interpreted] I have several questions.First is your planned launching schedule for EVE: Echoes global and if you can tell us about your expectations for it going forward.You mentioned about EVE: Echoes and NetEase and China.But can you tell us about what are your expectations for EVE: Echoes global, for example, compared to Black Desert global mobile — Mobile global?

And the next question is can you tell us about the trend in China for approval and licenses.You also mentioned you’re going to have more efficient advertising and marketing going forward, and it seems to us that with your launching of Black Desert, you had, in different quarters, sometimes KRW 2 billion to KRW 5 billion in the beginning, but it quickly went up to KRW 10 billion.And for 2018, you had about KRW 9 billion to KRW 10 billion of advertising marketing costs for each quarter.And in 2019, in Q1, it went up to KRW 30 billion with your launching of Black Desert Mobile in Japan.So it seems to us that it was relatively in the KRW 10 billion scope, and it is very actually special, I think, unique that for this quarter your cost for advertising was under KRW 10 billion.

So do you think that going forward, if you don’t have any new title launchings for those quarters, you will have only the marketing advertising expenses going below KRW 10 billion? Can we think of it as the base?

Kyung In Jung, Pearl Abyss Corp.

– CEO & Director [17]

[Interpreted] Thank you.And let me answer your first question.You asked about the schedule for EVE: Echoes launching, our expectations and the trend in China for gaining approval and licenses.

For EVE: Echoes, we had 2 rounds of beta tests, and based on our user feedback, we have been strengthening our game experience.

Currently, we are at the last stage of development, and we are perfecting the completeness of the game.And the developer and publisher, NetEase, of EVE: Echoes has said that on May 17 they will have their own streaming for them to give you a global update on the schedule for EVE: Echoes.So I think that you can keep an eye on that.

For our expectations going forward for EVE: Echoes, based on our EVE IP, we have very many players who are very into the game and immersed in the game as manias.And for EVE Online, we had a very high entry barrier because the game ability was not very easy.It was quite challenging.But for EVE: Echoes, we have made many efforts to actually have a lower entry barrier, so that is why, for EVE: Echoes, we are going to have content that don’t exist on EVE Online as well.

So we believe that many users will enjoy the game.

Actually, for EVE: Echoes, many media overseas has said that it is one of the top games that they are expecting as MMO mobile games in 2020.So we have many expectations that are rising with the launching period.So we believe that we’re going to have very good results going forward, and we are going to work hard so that we can provide long-term service equal to EVE Online for EVE: Echoes.

And you asked questions about the Black Desert Mobile and Black Desert license and the current situation in China.And we believe that there is a favorable environment from China about giving approval, but because of the COVID-19 outbreak, we need to keep a very close eye on the changes in the market.We believe that after our approval process is completed, we are going to work very hard with our publisher very closely so that we can launch our game as fast as possible.

Unidentified Company Representative, [18]

[Interpreted] You asked questions about our marketing plans going forward, and it is true, as you mentioned, that we have now live services of Black Desert in all regions, in all platforms.

So we’re going to focus more on efficient marketing execution rather than have just large marketing cost budget.

However, the fact that we have a lower marketing budget doesn’t mean that we’re not going to engage in as much marketing activities as before.

We’re going to have many different streaming occasions through broadcast.And we’re going to have many different collaborations and have different partnerships with different companies so that our game branding is going to be very strong going forward.

Unidentified Company Representative, [19]

[Interpreted] The answers were provided by our CEO, Jung Kyung In; and our CBO, [Kim Gyeong-man].

Operator [20]

(foreign language) The following question is by Kim Taewon from UBS Securities.

Taewon Kim, UBS Investment Bank, Research Division – Director and Research Analyst of Internet and Gaming [21]

[Interpreted] I have 2 questions.First is about the possibility of Shadow Arena actually becoming an esports event.And I know that it is a battle royale type of game, so some people have commented that the battles end a little bit early and you need more of a story line for it to be a part of esports.So with your last test, did you find any new factors that led you to believe that Shadow Arena will be a successful candidate for esports? And what was the type of user feedback that you received in relevance to that?

Second question is about the Black Desert Mobile revenues.And in Asia, I know that you had the peak and then it stabilized going down and stabilized at that time.And looking at your Q1 user activity indexes for Black Desert Mobile global, can you say that the trend seems to be similar, but — or do you believe that in the Western regions, you’re going to have a different trend for Black Desert Mobile in the revenue trend going forward?

Unidentified Company Representative, [22]

[Interpreted] Regarding your question about Shadow Arena through 4 rounds of global tests, we had actually applied it to many different game systems, and we had improved our game experience.At the last test, we had more than 100,000 users that participated, and we could actually find out that their game playing time increased and retention increased as well.

In addition, Shadow Arena is very meaningful as a spectator game or game fun to watch because, for the final beta test, we saw that there were more than 20,000 concurrent viewers in Twitch.So we received great interest from global users.

During the testing period, we had not only the Twitch broadcast, but many global streamers were actually streaming our game real-time.And we could see that many spectators and viewers were enjoying the game.So we see that there is an opportunity for Shadow Arena to grow as an esports.However, currently, we are focusing all our efforts on successful launching of Shadow Arena, but if we have any additional decisions made in regards to esports, we’re going to give you updates going forward.

Young Heo Jin, Pearl Abyss Corp.- COO [23]

[Interpreted] You also asked about Black Desert Mobile global.So to answer your question, we saw that for global, there was the revenues that were recognized for all quarters, so that is why the revenues grew greatly.And 54% of the revenues occurred in North America, Europe and 46% in Asia, so we see a very balanced growth for different regions.

And actually, the game is not different in global compared to other regions, but it is a little bit different because for the other regions, we had a very large marketing campaign that actually attracted many users in the beginning.

But it is true that we saw some users leave after that period.However, for our global launching, we had the launching in different countries at the same time, and we had a gradual but a very good boost in the game playing itself.So even now, we see new users who are joining our game, and we are seeing very stable playing of the game.

And our development team is very [focused] on having a very good environment for the new users to play the game for a long time.And we are also keeping an eye on our profitability as well so that we can see early lock.

And for Black Desert Mobile, we have had the global launching in different countries that was completed, and our developers are working very hard to actually have the MMO characteristics of the game such as the PVP and game experience that will be lasting for our game players for a long time and actually maintain our life cycle.

So we are making many efforts to this end.

Kyung In Jung, Pearl Abyss Corp.- CEO & Director [24]

[Interpreted] And just to elaborate on the possibility of Shadow Arena joining esports, we believe that there are 3 main characteristics for it to be a very suitable candidate for esports.First, regardless of the game monetization, it is very fair, this game, so that is why it is a very good candidate.And secondly, the player makes many adjustments to the game, and those are the factors that lead it to success or failure of the game itself and the playing ability.And the third is that it is very fun to watch.

So that is why we believe that Shadow Arena is a very good candidate for esports.

However, we do know that for it to become a esports game, we — it needs to be very popular.So that is why we are currently focusing our efforts so that we can have a wider user audience.

Unidentified Company Representative, [25]

[Interpreted] The answers were provided by our CBO, [Kim Gyeong-man]; COO, Heo Jin Young; and CEO, Jung Kyung In.

Operator [26]

(foreign language) The following question is by Kim Jingu from KTB Investment & Securities.

Jingu Kim, KTB Investment & Securities Co., Ltd., Research Division – Research Analyst [27]

[Interpreted] I have 3 questions.

First, do you have any testing schedule or premarketing schedule for your new titles including Crimson Desert? And if you can also tell us about what is currently going on in the development of the game and if there were any improvements to the game experience, please elaborate for us.

Second question is about any strategies for you to actually maintain your mid- to long-term revenues for your existing live games? And do you have any schedules for large updates going forward?

The third question is about your console revenues and in-game.Can you tell us about the previous 1 year’s trend for the console revenues for in-game?

Kyung In Jung, Pearl Abyss Corp.- CEO & Director [28]

[Interpreted] And thank you for your questions.

The first question is about our plans to actually disclose and show the games that we are currently developing in Q1 and any schedules that we have going forward.Thank you for your interest in our new titles.

Our existing plan was for us to actually participate in the biggest game show, E3, in June of this year so that we can have more interest in our new titles.

And for this year, we were going to have tests for both Crimson Desert and DokeV.And from late next year, we were going to actually launch the games one by one.However, because we had great changes in our internal and external environment, we believe that it is inevitable that we have to change our schedule for us to actually show the game.

Regarding our schedule to actually show more parts of the game to you, because we have the COVID-19 virus outbreak that has been actually spreading around the world, E3 event has been canceled.

So we are looking for different opportunities, and we will find the right method.And we are going to actually have an opportunity to show you, in addition, what we have been developing for Crimson Desert, and Crimson Desert is the title that we plan to launch the most early among all our different titles.

For our 3 titles, they are all currently being developed following different milestones that we have set.And for Crimson Desert, we have the target of Q4 2021 for the launching; and for DokeV, it is 2022.For Plan 8, it is 2023 that we have as our target for launching.We are going to do our best and do our utmost to develop our new titles so that we can develop games that will meet the expectations of users all around the world.

Young Heo Jin, Pearl Abyss Corp.

– COO [29]

[Interpreted] And I would like to answer your question about the current trend of our live game.For Black Desert revenues, thanks to the increase in revenues for Korea, North America and Europe, it went up 21%.And we had the global Steam promotion in February, which was quite successful and attracted many new users, and we believe that playing time might have increased because of the COVID-19 outbreak.So we believe that may have had an influence on our revenue increase.

We believe that in our Black Desert PC service, our expansion into Steam actually was a motivator for new users to join us.

And we are going to work very hard for all regions so that our consistent results will continue.We’re going to have good communication and service going forward.And like we had done from before, we’re going to have big updates for each quarter and also have new characters, introductions and updates to our new territories in different quarters like we had done before.

And for console, it is true that there might be seasonal events like selling of packages that will actually bring up the revenues for different quarters, but similar to our game online, we see that not only packages but for in-game purchases, it shows a similar trend in console as well.And we saw possibilities for our console also to have a similar pattern to online.

So we’re going to work very hard for us to provide long-term service so that we can have very stable profits coming in from console as well.

Unidentified Company Representative, [30].