Worth reading
52Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Deterioration
Direction inferred from the company’s description.Scale
405
JPY million (year-on-year decrease in operating profit)Wording
Conditional
How definitive the wording is.Contents of this document
Presentation materials for financial resultsFiscal year ending August 202611 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥6,316 million-4.8%
Operating profit¥284 million-58.8%
Ordinary income¥332 million-50.9%
Net income¥717 million+186.7%
Operating profit margin4.5 %
Selling, general and administrative expenses¥1,149 million+4.3%
Results for the three months of the current quarter
Net Sales
¥1,494 million
Operating profit
¥4 million
Full-year earnings forecast
Net Sales
¥6,000 million
Operating profit
¥415 million
Ordinary income
¥423 million
Net income
¥280 million
Operating profit margin
6.9 %
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Temporary suspension of a major overseas project
- Decline in gross profit margin due to idle capacity
- Decline in revenue share from the previous fiscal year's high level
- Extraordinary income (including the sale of land in Nagaokakyo, Kyoto)¥898 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The market environment for the game business is expected to remain solid, based on the completion of major projects, the launch of new projects, reduced external outsourcing and improved capacity utilization. Numerical assumptions were Not disclosed.New initiatives
- Launch of an interpersonal work simulation tool for pharmacy students in October 2026
- Construction of a new office building in Nagaokakyo and consolidation of bases in Kyoto Prefecture
- Use of AI and promotion of digital transformation, internal training, and strengthened career-track hiring
- Initiatives targeting Nintendo Switch 2 compatibility and the remaster market
Key KPIsA metric the company considers important as a management benchmark.
- Standalone employees550 people
- Consolidated number of employees592 people
- Standalone employee turnover rate5.5 %
- ROE
- Major contracted development projects7 Engagements
Segment results
- Gaming BusinessNet Sales¥5,879 million (YoY -2.7%)Operating profit¥247 million (YoY -60.2%)
- Other BusinessesNet Sales¥437 million (YoY -26.0%)Operating profit¥37 million (YoY -45.5%)
Financial targets
ROETarget of 8.0% or higher
Number of stores and locations
Kyoto head office, Nishiōji Development Center, Nagaokakyo Development Center, Yamazaki Development Center, Tokyo Development Center, etc. The number of sites opened and closed during the fiscal year was Not disclosedNumber of employees
Consolidated592 people
Standalone550 people
Hiring planMention of strengthening career-track hiring
Capital expenditures
¥2,830 million construction costs for the new office building
Annual Dividend
Annual dividend per share¥25
Interim¥12.5
End of period¥12.5
Payout ratio
67.7 %
| Item | Details |
|---|---|
| Document type | Presentation materials for financial results |
| Fiscal Period Covered | Fiscal year ending August 2026 |
| Net Sales | ¥6,316 million (YoY -4.8%) |
| Operating profit | ¥284 million (YoY -58.8%) |
| Ordinary income | ¥332 million (YoY -50.9%) |
| Net income | ¥717 million (YoY +186.7%) |
| Operating profit margin | 4.5 % |
| Selling, general and administrative expenses | ¥1,149 million (YoY +4.3%) |
| Results for the three months of the current quarter | Net Sales ¥1,494 million / Operating profit ¥4 million |
| Full-year earnings forecast | Net Sales ¥6,000 million / Operating profit ¥415 million / Ordinary income ¥423 million / Net income ¥280 million / Operating profit margin 6.9 % |
| Segment results | Segment Gaming Business / Net Sales ¥5,879 million (YoY -2.7%) / Operating profit ¥247 million (YoY -60.2%), Segment Other Businesses / Net Sales ¥437 million (YoY -26.0%) / Operating profit ¥37 million (YoY -45.5%) |
| Breakdown of Factors Affecting the Change | Factors Temporary suspension of a major overseas project / Amount Not disclosed, Factors Decline in gross profit margin due to idle capacity / Amount Not disclosed, Factors Decline in revenue share from the previous fiscal year's high level / Amount Not disclosed, Factors Extraordinary income (including the sale of land in Nagaokakyo, Kyoto) / Amount ¥898 million |
| Key KPIs | Indicator name Standalone employees / Value 550 people / Year on year against the same period last year Not disclosed, Indicator name Consolidated number of employees / Value 592 people / Year on year against the same period last year Not disclosed, Indicator name Standalone employee turnover rate / Value 5.5 % / Year on year against the same period last year Not disclosed, Indicator name ROE / Value Not disclosed / Year on year against the same period last year Not disclosed, Indicator name Major contracted development projects / Value 7 Engagements / Year on year against the same period last year Not disclosed |
| Number of stores and locations | Kyoto head office, Nishiōji Development Center, Nagaokakyo Development Center, Yamazaki Development Center, Tokyo Development Center, etc. The number of sites opened and closed during the fiscal year was Not disclosed |
| Number of employees | Consolidated 592 people / Standalone 550 people / Change during the period Not disclosed / Hiring plan Mention of strengthening career-track hiring |
| Assumptions Underlying the Business Outlook | The market environment for the game business is expected to remain solid, based on the completion of major projects, the launch of new projects, reduced external outsourcing and improved capacity utilization. Numerical assumptions were Not disclosed. |
| Financial targets | ROE Target of 8.0% or higher / Actual value Not disclosed |
| Annual Dividend | Annual dividend per share ¥25 / Interim ¥12.5 / End of period ¥12.5 |
| Payout ratio | 67.7 % |
| Capital expenditures | ¥2,830 million (construction costs for the new office building) |
| New initiatives | Launch of an interpersonal work simulation tool for pharmacy students in October 2026, Construction of a new office building in Nagaokakyo and consolidation of bases in Kyoto Prefecture, Use of AI and promotion of digital transformation, internal training, and strengthened career-track hiring, Initiatives targeting Nintendo Switch 2 compatibility and the remaster market |
Items this document does not state (10)
Gross Profit MarginProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsRisk amount incorporated into the outlookMedium-term management plan targetsAcquisition of treasury sharesOrders 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.A major overseas game project was temporarily suspended during the fiscal year, resulting in substantial idle capacity from the third quarter onward and a decline in the gross profit margin. In addition, the decline in revenue share from the previous fiscal year's high level was the primary reason for the decrease in operating profit.
How to read this page
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