Results for this period
First quarter1 January 2026–31 March 2026ConsolidatedJapanese GAAPThe width of the band at each stage is based on revenue. The narrower it becomes toward the bottom, the smaller the proportion of revenue that remains as profit.
The shaded area represents net assets as a proportion of total assets. It is calculated from the two amounts reported by the company.
Revenue increased as higher revenue from the game-related business of Gala Lab Corp. and the smartphone app business of Gala Mix Inc. offset the decline in revenue from the VFX business. Lower costs due to reduced VFX business operations, more efficient operations, the absence of one-time expenses incurred in the same period of the previous year, and lower selling, general and administrative expenses resulting from more efficient marketing activities also contributed to the improvement in earnings.
A disclosure regarding material events and conditions has been made. Although events or conditions exist that raise significant doubt about the going-concern assumption, including the recording of an operating loss and a quarterly net loss attributable to owners of the parent, the company determined that there are no concerns regarding its cash flow and that no material uncertainty regarding the going-concern assumption exists. There are no matters to be disclosed in the notes on the going-concern assumption.
| Item | Details |
|---|---|
| Fiscal Period Classification | First quarter |
| Accounting standards | Japanese GAAP |
| Consolidated / non-consolidated | Consolidated |
| Period Covered | 1 January 2026–31 March 2026 |
| Net Sales | ¥535,595 thousand (YoY +13.2%) |
| Operating profit | ¥-23,794 thousand |
| Ordinary income | ¥24,680 thousand |
| Profit attributable to owners of the parent | ¥-13,112 thousand |
| Total assets | ¥3,485,047 thousand |
| Net assets | ¥960,639 thousand |
| Full-year earnings forecast | Net Sales Forecast value Not disclosed / Year-on-year change Not disclosed / Operating profit Forecast value Not disclosed / Year-on-year change Not disclosed / Ordinary income Forecast value Not disclosed / Year-on-year change Not disclosed / Net income Forecast value Not disclosed / Year-on-year change Not disclosed |
| Segment revenue | Japan ¥45,881 thousand (YoY +17.5%) / South Korea ¥513,864 thousand (YoY +12.7%) |
| Segment profit | Japan ¥-82,642 thousand / South Korea ¥57,591 thousand |
| Depreciation and amortization | ¥12,921 thousand |
| Impairment loss | ¥19,685 thousand |
| Breakdown of extraordinary income (loss) | Extraordinary income Not disclosed / Extraordinary loss Impairment Losses ¥19,685 thousand |
| Disclosure regarding the going concern assumption | A disclosure regarding material events and conditions has been made. Although events or conditions exist that raise significant doubt about the going-concern assumption, including the recording of an operating loss and a quarterly net loss attributable to owners of the parent, the company determined that there are no concerns regarding its cash flow and that no material uncertainty regarding the going-concern assumption exists. There are no matters to be disclosed in the notes on the going-concern assumption. |
| Changes in the scope of consolidation | Additions during the period Not disclosed / Exclusions during the period Not disclosed / Expected future exclusion Number of companies 1 / Company name ㈱ツリーフル |
| Material subsequent events | On 30 April 2026, the company resolved not to exercise subscription rights for new shares in connection with ㈱ツリーフル's capital increase. ㈱ツリーフル is expected to be excluded from the company's scope of consolidation. |
| Factors Behind Changes in Business Performance | Revenue increased as higher revenue from the game-related business of Gala Lab Corp. and the smartphone app business of Gala Mix Inc. offset the decline in revenue from the VFX business. Lower costs due to reduced VFX business operations, more efficient operations, the absence of one-time expenses incurred in the same period of the previous year, and lower selling, general and administrative expenses resulting from more efficient marketing activities also contributed to the improvement in earnings. |
Items this document does not state (18)
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.Revenue from the game-related business and smartphone app business increased, while revenue from the VFX business disappeared. The factors contributing to the improvement in earnings were lower costs due to reduced VFX business operations and more efficient operations, the absence of one-time expenses recorded in the same period of the previous year, and lower advertising and promotion expenses and other costs as a result of more efficient marketing activities.