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Presentation materials on financial results3793Drecom Co.,Ltd.Information and Communications, Services and Others

Earnings Presentation Materials for the First Quarter of the Fiscal Year Ending March 2027

In Q1 FY2027, revenue fell 2.5% year on year, while operating profit returned to profitability at ¥522 million, driven by growth in the flagship game and improvements in loss-making titles. Q1 results exceeded the initial assumptions, but the full-year forecast was left unchanged.

Worth reading
87Important
Scored from 4 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
522
¥ millions (operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials on financial resultsFirst quarter of the fiscal year ending March 20277 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥4,355 million-2.5%
Operating profit¥522 million
Ordinary income¥512 million
Net income¥323 million profit attributable to owners of the parent
Operating profit margin12 %
Results for the three months of the current quarter
Net Sales
¥4,355 million
Operating profit
¥522 million
Ordinary income
¥512 million
Net income
¥323 million
Full-year earnings forecast
Net Sales
¥18,000 million
Operating profit
¥1,000 million
Ordinary income
¥900 million
Net income
¥600 million
EBITDA
¥1,950 million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales24.2%
Variable costs20.0%
Fixed Costs23.8%
Advertising expenses13.7%
Research and development costs13.5%
Depreciation and amortization27.8%
Game development costs capitalized12.0%
Operating profit52.3%
EBITDA40.4%
Ordinary income56.9%
Profit attributable to owners of the parent53.9%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Q1 exceeded the initial assumptions
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Impact of higher revenue+¥312 million
  • Impact of subsidiary disposals on profit-¥168 million
  • Impact of lower variable-cost ratio+¥151 million
  • Labor Costs+¥23 million
  • Outsourcing costs−¥73 million
  • Advertising expenses-¥18 million
  • Communication expenses▲¥1 million
  • Depreciation+¥16 million
  • Game development costs capitalized−¥10 million
  • Research and development costs−¥36 million
  • Other expenses+¥30 million
New initiatives
  • Establishment of the indie game studio DRECOM CREATORS STUDIO
  • Final Fantasy XI collaboration in Wizardry Variants Daphne
  • Launch of a dedicated website for the 45th anniversary of Wizardry
  • TV anime adaptation of The Monster Tamer's Daughter
  • Launch of the original comic label Dorikomi
  • Transitioning to an Organization Built Around AI
  • Planned office relocation to Shibuya in 2028
Key KPIsA metric the company considers important as a management benchmark.
  • Wizardry Variants Daphne revenue¥2,620 million
    Year on year against the same period last year+14%
  • Number of titles in operation9 Title
  • Number of indie games released1 bottles
  • Number of indie games in development2 bottles
  • Total submissions to the DRECOM Media Awards10,537 Works
  • Wizardry-related net sales¥4,800 million fiscal year ending March 2026
  • Cumulative series copies (The Fiancée Eloped with Her Affair Partner)100 10,000 copies
Segment results
  • Gaming Business
    Net Sales¥4,145 million
    Operating profit¥793 million
    Net sales in the same period of the previous year¥4,327 million
    Operating profit for the same period of the previous year¥122 million
  • Content business
    Net Sales¥209 million
    Operating profit¥-270 million
    Net sales in the same period of the previous year¥155 million
    Operating profit for the same period of the previous year¥-204 million
Medium-term management plan targets
Target fiscal yearBy the fiscal year ending March 2031
Target value
  • Revenue growth CAGR of at least 20%
  • Operating margin of at least 15%
  • Establish a system for continuously creating and nurturing proprietary IP
Financial targets
Operating profit margin
Target value15 %
Contents of this document
ItemDetails
Document typePresentation materials on financial results
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥4,355 million (YoY -2.5%)
Operating profit¥522 million
Ordinary income¥512 million
Net income¥323 million (profit attributable to owners of the parent)
Operating profit margin12 %
Results for the three months of the current quarterNet Sales ¥4,355 million / Operating profit ¥522 million / Ordinary income ¥512 million / Net income ¥323 million
Full-year earnings forecastNet Sales ¥18,000 million / Operating profit ¥1,000 million / Ordinary income ¥900 million / Net income ¥600 million / EBITDA ¥1,950 million
Progress against full-year forecastNet Sales 24.2% / Variable costs 20.0% / Fixed Costs 23.8% / Advertising expenses 13.7% / Research and development costs 13.5% / Depreciation and amortization 27.8% / Game development costs capitalized 12.0% / Operating profit 52.3% / EBITDA 40.4% / Ordinary income 56.9% / Profit attributable to owners of the parent 53.9%
Self-assessment against the planQ1 exceeded the initial assumptions
Segment resultsSegment Gaming Business / Net Sales ¥4,145 million / Operating profit ¥793 million / Net sales in the same period of the previous year ¥4,327 million / Operating profit for the same period of the previous year ¥122 million, Segment Content business / Net Sales ¥209 million / Operating profit ¥-270 million / Net sales in the same period of the previous year ¥155 million / Operating profit for the same period of the previous year ¥-204 million
Breakdown of Factors Affecting the ChangeFactors Impact of higher revenue / Amount +¥312 million, Factors Impact of subsidiary disposals on profit / Amount -¥168 million, Factors Impact of lower variable-cost ratio / Amount +¥151 million, Factors Labor Costs / Amount +¥23 million, Factors Outsourcing costs / Amount −¥73 million, Factors Advertising expenses / Amount -¥18 million, Factors Communication expenses / Amount ▲¥1 million, Factors Depreciation / Amount +¥16 million, Factors Game development costs capitalized / Amount −¥10 million, Factors Research and development costs / Amount −¥36 million, Factors Other expenses / Amount +¥30 million
Key KPIsIndicator name Wizardry Variants Daphne revenue / Value ¥2,620 million / Year on year against the same period last year +14%, Indicator name Number of titles in operation / Value 9 Title / Year on year against the same period last year Not disclosed, Indicator name Number of indie games released / Value 1 bottles / Year on year against the same period last year Not disclosed, Indicator name Number of indie games in development / Value 2 bottles / Year on year against the same period last year Not disclosed, Indicator name Total submissions to the DRECOM Media Awards / Value 10,537 Works / Year on year against the same period last year Not disclosed, Indicator name Wizardry-related net sales / Value ¥4,800 million (fiscal year ending March 2026) / Year on year against the same period last year Not disclosed, Indicator name Cumulative series copies (The Fiancée Eloped with Her Affair Partner) / Value 100 10,000 copies / Year on year against the same period last year Not disclosed
Medium-term management plan targetsTarget fiscal year By the fiscal year ending March 2031 / Target value Revenue growth CAGR of at least 20%, Operating margin of at least 15%, Establish a system for continuously creating and nurturing proprietary IP
Financial targetsOperating profit margin Target value 15 %
New initiativesEstablishment of the indie game studio DRECOM CREATORS STUDIO, Final Fantasy XI collaboration in Wizardry Variants Daphne, Launch of a dedicated website for the 45th anniversary of Wizardry, TV anime adaptation of The Monster Tamer's Daughter, Launch of the original comic label Dorikomi, Transitioning to an Organization Built Around AI, Planned office relocation to Shibuya in 2028
Items this document does not state (14)
Gross Profit MarginSelling, general and administrative expensesUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

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.

Profit improved due to 14% year-on-year growth in Wizardry Variants Daphne, strong anniversary initiatives for titles distributed by other companies, narrower losses at unprofitable titles, and lower payment processing fees. The sale of 2 subsidiaries, however, had a negative impact on revenue and profit.

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.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Earnings Presentation Materials for the First Quarter of the Fiscal Year Ending March 2027 | Drecom Co.,Ltd. (3793) timely disclosure | Komori