Promotion-Linked Operations and Growth in In-App Purchase Revenue for Large-Scale Smartphone Games

「Revenue related to operations remained below the level of the same period of the previous year, partly because all of the operated titles had been available for more than 5 years.」

「Revenue from operations as a whole, including revenue sharing, exceeded the previous year as we added stories and events and implemented measures to address the substantial processing load for major projects that continue to operate.」

「In the mobile content business, ongoing projects continued to perform above the level recorded in the same period of the previous year. Meanwhile, as reported in the second-quarter report, development revenue declined because a smartphone game development project that required a major server upgrade during development, along with related rework, was delayed beyond the initial schedule as development continued toward delivery during the current consolidated fiscal year. As a result, revenue was ¥1.1 billion, down 20.2% year on year.」

「In the mobile content business, the ongoing operations services remained solid, and operations and royalty revenue continued to exceed the level recorded in the same period of the previous year. Meanwhile, a smartphone game development project required a major server upgrade during development, which also resulted in rework, substantially increasing development costs and delaying the development schedule. As a result, revenue was ¥753 million, down 15.7% year on year.」

「The outsourced operations that we continue to undertake remained solid, and multiple new development projects are also under way. However, development revenue declined because it did not offset the decline following the previous year's recognition of revenue from a major development project that was subsequently cancelled.」

「Operations provided on an outsourced basis continued to progress steadily. Meanwhile, the smartphone game market remains difficult for new games to enter because of the large number of titles available, and development revenue declined as negotiations for new development projects were pursued cautiously. As a result, revenue was ¥449 million, down 6.6% year on year.」

「Revenue from operations declined during the current consolidated fiscal year because operations for 2 large games ended during the previous consolidated fiscal year. As a result, revenue was ¥1,944 million, down 9.9% from the previous consolidated fiscal year.」

「Revenue related to mobile content was ¥1,466 million, as operating revenue declined from the same period of the previous year, down 9.9% year on year.」

「Revenue related to mobile content was ¥481 million, as operating revenue declined from the same period of the previous year, when it was ¥510 million.」

「As described above, revenue related to mobile content was ¥2,159 million, down 24.9% from the previous consolidated fiscal year. Operating revenue from smartphone games remained solid, but customer consultations and inquiries regarding development work increased more in game software than in mobile content, and the number of development projects declined from the previous fiscal year.」

「Revenue related to mobile content was ¥1,627 million, down 12.4% year on year. Operating revenue progressed favorably as operations for a large smartphone game continued steadily, but consultations and inquiries from customers regarding development work declined in mobile content even as they increased in game software, and development project completions also decreased from the same period of the previous year.」

「Revenue related to mobile content was ¥1,122 million, down 9.7% year on year. Operating revenue progressed favorably as operations for a large smartphone game continued steadily, but development project completions declined from the same period of the previous year, partly because customers remained cautious about launching new titles, as described in (1) above.」

「Revenue related to mobile content was ¥510 million, down 0.4% year on year, as royalty revenue increased for some smartphone games and operations for a large smartphone game continued steadily.」

「Operating profit came to ¥112 million, compared with an operating loss of ¥4 million in the same period of the previous year, ordinary profit came to ¥138 million, approximately 5.4 times the year-earlier level, and profit attributable to owners of the parent came to ¥74 million, approximately 73.6 times the year-earlier level. This was due in part to successful cost control relative to the increase in development scale in some projects and strong royalty revenue from the smartphone app Utawarerumono Lost Flag, whose development and operation are handled by our group.」

「The smartphone app Utawarerumono: Lost Flag, whose development and operation are handled by our group, began distribution on 26 November 2019 and surpassed 2 million downloads. The publisher is 株式会社アクアプラス.」

「Amid these developments, Dragon Quest Rivals, a smartphone game whose development and operation our group supports, surpassed 12 million downloads. The publisher is 株式会社スクウェア・エニックス.」

「Major smartphone games completed during the current consolidated fiscal year will enter an important phase in which the customer conducts full-scale promotional activities to increase the user base and in-app purchase revenue. Our group will steadily carry out operations linked to these promotional activities and work to expand revenue.」