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[Alpha Biz=(Chicago) Reporter Kim Jisun] As the credit rating outlook for Pearl Abyss and Com2uS has been downgraded, warning lights have come in for the game industry.
The Korea Enterprise Evaluation said on the 13th that it has maintained the unguaranteed bond credit rating of Pearl Abyss and Com2uS at 'A' and lowered the rating outlook from 'stable' to 'negative'. Pearl Abyss has been given a 'A-(stable)' rating by the NICE Credit Rating and maintains its rating. The 'negative' rating outlook means that there is a greater possibility of a credit rating downgrade in the medium term.
The credit rating outlook of both companies has changed because of their recent decline in business performance. Pearl Abyss has been on the decline since 2020. Cumulative sales in the third quarter of this year fell 11.9% year-on-year to 249 billion won. With the operating profit ratio of around 1-2% in the first and third quarters of 2023, the operating loss of 14.1 billion won occurred due to the payment of special bonuses in the second quarter, resulting in a cumulative operating loss of 10.9 billion won in the third quarter.
Pearl Abyss saw its sales drop in 2023 despite the release of its new publishing "Black Clover." Analysts say that the rapid progress of mobile games has led to a decline in appearance. Korea Ratings said profitability is also showing a clear decline due to increased overall operating costs, including labor costs.
Com2uS suffered operating losses due to the burden of labor costs and poor performance of its subsidiaries. In the game sector, the company posted an operating loss of 1.1 billion won in the first quarter of this year due to increased marketing costs related to new products. Since then, it has turned into a surplus since the second quarter, but profitability in the game sector has worsened compared to the past due to sluggish performance of its new film.
The operating loss came as the subsidiary's poor performance continued amid the increased burden of labor costs following the expansion of manpower and the industry's annual salary hike. Com2uS continues to suffer losses due to continued operating losses in the media and content sectors amid a drop in profitability of its own business compared to the past.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
