Securing High Profit Margins and Strengthening the Earnings Base

「For the consolidated fiscal year, net sales were ¥17,547,778 thousand, up 38.7% year on year; operating income was ¥408,717 thousand, up 264.9%; and ordinary income was ¥318,911 thousand, up 498.3%.」

「For the six months ended the current interim period, revenue was ¥8,238.640 million, up 105.0% year on year; operating loss was ¥574.839 million, compared with an operating loss of ¥315.173 million in the same period of the previous fiscal year; and ordinary loss was ¥616.865 million, compared with an ordinary loss of ¥354.286 million. In addition, the company reassessed future revenue from a mobile game title released at the end of the previous fiscal year and recognized an impairment loss during the first quarter of the current fiscal year. As a result of recording an extraordinary loss of ¥1,563.462 million, interim net loss attributable to owners of the parent was ¥2,362.395 million, compared with an interim net loss attributable to owners of the parent of ¥1,022.028 million in the same period of the previous fiscal year.」

「For the six months ended the current interim period, revenue was ¥4,018.072 million, down 21.1% year on year; operating loss was ¥315.173 million, compared with operating income of ¥472.280 million in the same period of the previous fiscal year; and ordinary loss was ¥354.286 million, compared with ordinary income of ¥453.584 million.」

「The company aims to build a cumulative stream of earnings through releases of new titles in addition to titles in operation. However, as released new titles were performing below expectations, it reviewed its operating and development portfolio and decided during the second quarter to close 1 title in operation that had been released at the end of the previous fiscal year and discontinue development of 1 unreleased title under development at the prototype stage.」

「We will undertake a comprehensive review of the strategy for mobile game titles under development and reduce costs to improve the earnings situation at an early stage, while seeking to increase revenue and profit through contributions from new titles to be released in the latter part of the second half.」

「Mainly because initiatives to improve the profitability of unprofitable titles, including optimizing operating expenses and closing services, proved effective, cost of sales decreased by ¥489.878 million year on year to ¥6,242.019 million, down 7.3%. Together with the effect of higher revenue described above, this increased gross profit by ¥761.634 million to ¥4,558.237 million, up 20.1%. The gross profit margin also increased by 6.1 percentage points from the previous fiscal year to 42.2%.」

「For the nine months ended the third quarter of the current fiscal year, revenue was ¥8,380.181 million, up 3.7% year on year; operating income was ¥2,100.620 million, up 47.9%; and ordinary income was ¥2,025.427 million, up 46.7%. In addition, an impairment loss was recognized on 1 title in operation, resulting in an extraordinary loss of ¥336.259 million. Consequently, quarterly net income attributable to owners of the parent was ¥1,166.723 million, up 36.7%.」

「For the six months ended the second quarter of the current fiscal year, revenue was ¥5,800.434 million, up 11.9% year on year; operating income was ¥1,607.859 million, up 66.2%; ordinary income was ¥1,547.617 million, up 64.4%; and quarterly net income attributable to owners of the parent was ¥1,056.684 million, up 72.6%. Each of these profit figures was a record high.」

「For the first quarter of the current fiscal year, revenue was ¥2,927.195 million, up 10.0% year on year; operating income was ¥817.189 million, up 62.1%; ordinary income was ¥810.539 million, up 64.6%; and quarterly net income attributable to owners of the parent was ¥521.831 million, up 73.5%. Each of these profit figures was a record high.」

「Mainly because initiatives to improve the profitability of unprofitable titles, including optimizing operating expenses and closing services, proved effective, cost of sales decreased by ¥1,111.846 million year on year to ¥6,731.898 million, down 1.4%. However, due to the impact of lower revenue, gross profit decreased by ¥200.392 million to ¥3,796.602 million, down 5.0%. The gross profit margin also increased by 2.3 percentage points from the previous fiscal year to 36.1%.」

「In addition, many of the titles currently in operation were generating stable profits, further improving profitability in the core game business and increasing business stability.」

「At the same time, action on unprofitable titles progressed steadily, and almost all titles reached a point where they were generating stable profits. Profitability in the core game business improved further, and business stability also increased. As a result, consolidated revenue for the fiscal year was ¥11,840.739 million, up 16.7% year on year; operating income was ¥2,052.865 million, up 232.7%; ordinary income was ¥2,019.231 million, up 217.5%; and net income attributable to owners of the parent was ¥1,624.683 million, up 128.4%.」

「Regarding profit, action on the unprofitable titles that has been a focus since last year progressed further. Together with the effects of improved operating efficiency and cost controls in light of current economic conditions, this reduced expenses year on year, resulting in higher operating income.」

「Action on the unprofitable titles that has been a focus since last year progressed further. Together with the effects of improved operating efficiency and cost controls in light of current economic conditions, this reduced expenses year on year, resulting in higher operating income.」

「As a result, consolidated revenue for the first quarter of the current fiscal year was ¥3,303.191 million, up 46.6% year on year; operating income was ¥623.773 million, up 386.4%; ordinary income was ¥609.062 million, up 301.4%; and net income attributable to owners of the parent was ¥467.000 million, up 282.4%.」

「Although we continued to invest in “enza” and new business development, expenses declined year on year as “enza” entered its expansion phase, action on unprofitable titles in the existing game business was completed, and operating costs were optimized. As a result, operating income replaced the operating loss.」

「Although we continued to invest in “enza” and new business development, expenses declined year on year because measures addressing unprofitable titles were completed and operating costs were optimized, resulting in operating results turning into an operating profit.」

「Although we continued to invest in “enza” and new business development, expenses declined year on year due to measures including the discontinuation of unprofitable titles and optimization of operating costs through a review of the operating structure. As a result, operating results improved year on year and turned into an operating profit. Consequently, ordinary results and quarterly net income attributable to owners of the parent also turned into profits.」

「Although we continued to invest in “enza” and new business development, expenses declined year on year due to measures including the discontinuation of unprofitable titles and optimization of operating costs through a review of the operating structure. As a result, operating results improved year on year and turned into an operating profit. Consequently, ordinary results and quarterly net income attributable to owners of the parent also turned into profits.」

「We recognize that a key challenge is to secure high profit margins by strengthening the foundation of existing businesses while also concentrating management resources on new services.」

「In terms of earnings, expenses were contained through operating efficiency improvements and company-wide cost optimization, which are currently being pursued as the highest-priority objectives, and profitability improved from the previous quarter. However, as certain unprofitable titles remain in the process of improving profitability, the company continued to record a loss, posting an operating loss of ¥704,968 thousand, compared with operating profit of ¥341,269 thousand in the same period of the previous year.」

「In terms of earnings, expenses were contained through operating efficiency improvements and company-wide cost optimization, which are currently being pursued as the highest-priority objectives, and profitability improved quarter on quarter. However, year on year, the number of titles in operation increased, resulting in higher operating costs, and profit turned into a loss. Operating loss was ¥578,557 thousand, compared with operating profit of ¥167,348 thousand in the same period of the previous year; ordinary loss was ¥824,106 thousand, compared with ordinary profit of ¥59,664 thousand; and net loss attributable to owners of the parent was ¥655,499 thousand, compared with net profit attributable to owners of the parent of ¥36,020 thousand.」

「Going forward, our two highest-priority objectives will be expanding the new browser game service “enza” and improving profitability by optimizing operating costs for existing game applications. We will prioritize the allocation of management resources to these areas and work to expand the business.」

「We will continue to seek higher sales through the release of new IP games and the growth of existing games, while working to improve profitability by optimizing operating costs for newly released games.」

「We will continue to seek higher sales through the release of new IP games and the growth of existing games, while working to improve profitability by optimizing operating costs for newly released games.」

「As a result, net sales for the consolidated fiscal year were ¥8,388,502 thousand, up 28.4% year on year. In terms of earnings, operating profit was ¥932,121 thousand, compared with an operating loss of ¥206,061 thousand in the previous year; ordinary profit was ¥844,391 thousand, compared with an ordinary loss of ¥217,967 thousand in the previous year; and net profit attributable to owners of the parent was ¥814,575 thousand, compared with a net loss attributable to owners of the parent of ¥537,978 thousand in the previous year.」

「In the advertising media business, we worked to accelerate the growth of the expanding advertising media business from both the business expansion and profitability improvement perspectives, including efforts to introduce new monetization methods for our core service, the video reward advertising service “DreeVee.”」

「In the advertising media business, we worked to accelerate the growth of the expanding advertising media business from both the business expansion and profitability improvement perspectives, including efforts to introduce new monetization methods for our core service, the video reward advertising service “DreeVee.”」

「In the advertising media business, we worked to accelerate the growth of the expanding advertising media business from both the business expansion and profitability improvement perspectives, including efforts to introduce new monetization methods for our core service, the video reward advertising service “DreeVee.”」

「We recognize that a key challenge is to secure high profit margins by strengthening the foundation of existing businesses while also concentrating management resources on new services.」