Worth reading
47Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
517
Millions of yen (variance between forecast and actual consolidated operating profit)Wording
Conditional
How definitive the wording is.Contents of this document
Summary of Q&AFull year of the fiscal year ending January 20267 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥48,837 million
Operating profit¥-238 million
What the company explained in this material
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Issues Difference between earnings forecasts and actual results / Summary Although revenue was broadly in line with expectations, operating profit and net income fell below forecast because of the allowance for doubtful accounts, business restructuring costs, impairment losses and special retirement payments.
- Issues Foreign Exchange Effects / Summary The yen's appreciation against the US dollar and depreciation against the pound had only a minor impact on revenue and operating profit. Foreign exchange losses of ¥236 million arose from the translation of foreign-currency-denominated assets and liabilities.
- Issues Earnings forecast for the fiscal year ending January 2027 / Summary The company aims to achieve higher operating profit and return to profitability despite lower revenue by withdrawing from Media & Content and restructuring its domestic and overseas businesses.
- Issues Foreign exchange assumptions for the next fiscal year / Summary The forecast assumes ¥150 per US dollar.
- Issues Dividends / Summary The annual dividend will remain unchanged at ¥16 per share, with a basic policy of a total payout ratio of at least 30% and a DOE floor of 3%.
- Issues Future management policy / Summary The company will shift its focus from sales growth to restoring and achieving renewed growth in profitability, and will invest in domestic games, domestic Tech and overseas games.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Allowance for doubtful accounts for Overseas Solutions
- One-time business restructuring costs
- Impairment Losses¥3,060 million
- Special retirement payments¥299 million
- Foreign exchange losses¥236 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- US$1¥150
New initiatives
- Expanding market share in the domestic games sector
- Focused investment in the domestic Tech and overseas games sectors
- Developing AI talent
- Introducing new services and systems
- Withdrawing from the Media & Content business and restructuring the business
Segment results
- Domestic SolutionsNet Sales¥25,904 millionOperating profit¥1,128 million
- International SolutionsNet Sales¥20,792 millionOperating profit¥-939 million
- Media and ContentNet Sales¥2,139 millionOperating profit¥-141 million
- Corporate and eliminationsOperating profit¥-286 million
Financial targets
Total payout ratio30% or more
DOEFloor of 3%
Annual Dividend
Annual dividend per share¥16
| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | Full year of the fiscal year ending January 2026 |
| Net Sales | ¥48,837 million |
| Operating profit | ¥-238 million |
| Segment results | Segment Domestic Solutions / Net Sales ¥25,904 million / Operating profit ¥1,128 million / Year on year against the same period last year Not disclosed, Segment International Solutions / Net Sales ¥20,792 million / Operating profit ¥-939 million / Year on year against the same period last year Not disclosed, Segment Media and Content / Net Sales ¥2,139 million / Operating profit ¥-141 million / Year on year against the same period last year Not disclosed, Segment Corporate and eliminations / Net Sales Not disclosed / Operating profit ¥-286 million / Year on year against the same period last year Not disclosed |
| Breakdown of Factors Affecting the Change | Factors Allowance for doubtful accounts for Overseas Solutions / Amount Not disclosed, Factors One-time business restructuring costs / Amount Not disclosed, Factors Impairment Losses / Amount ¥3,060 million, Factors Special retirement payments / Amount ¥299 million, Factors Foreign exchange losses / Amount ¥236 million |
| Assumptions Underlying the Business Outlook | Item US$1 / Value ¥150 |
| Financial targets | Total payout ratio 30% or more / DOE Floor of 3% |
| Annual Dividend | Annual dividend per share ¥16 |
| Key points of the Q&A | Issues Difference between earnings forecasts and actual results / Summary Although revenue was broadly in line with expectations, operating profit and net income fell below forecast because of the allowance for doubtful accounts, business restructuring costs, impairment losses and special retirement payments., Issues Foreign Exchange Effects / Summary The yen's appreciation against the US dollar and depreciation against the pound had only a minor impact on revenue and operating profit. Foreign exchange losses of ¥236 million arose from the translation of foreign-currency-denominated assets and liabilities., Issues Earnings forecast for the fiscal year ending January 2027 / Summary The company aims to achieve higher operating profit and return to profitability despite lower revenue by withdrawing from Media & Content and restructuring its domestic and overseas businesses., Issues Foreign exchange assumptions for the next fiscal year / Summary The forecast assumes ¥150 per US dollar., Issues Dividends / Summary The annual dividend will remain unchanged at ¥16 per share, with a basic policy of a total payout ratio of at least 30% and a DOE floor of 3%., Issues Future management policy / Summary The company will shift its focus from sales growth to restoring and achieving renewed growth in profitability, and will invest in domestic games, domestic Tech and overseas games. |
| New initiatives | Expanding market share in the domestic games sector, Focused investment in the domestic Tech and overseas games sectors, Developing AI talent, Introducing new services and systems, Withdrawing from the Media & Content business and restructuring the business |
Items this document does not state (20)
Ordinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterFull-year earnings forecastProgress against full-year forecastSelf-assessment against the planKey KPIsUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / Share
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Although revenue was broadly in line with expectations, the company recorded an allowance for doubtful accounts for its overseas solutions business in connection with legal rehabilitation proceedings involving a European client, higher-than-expected business restructuring costs, impairment losses of ¥3,060 million and special retirement payments of ¥299 million.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.