Revenue and profit increased in H1, but an uplift in H2 is needed to meet the full-year plan

FY2026-H1 revenue was ¥10,208.2 million, up 15.7% year on year, operating profit was ¥409.7 million, up 40.7%, and ordinary profit was ¥432.9 million, up 148.6%. By contrast, net income attributable to owners of the parent was ¥208.5 million, down 40.8% year on year. The operating margin was approximately 4.0% on a simple calculation, improving by approximately 0.7 percentage points from approximately 3.3% in the same period of the previous year, but the increase did not extend through to net profit.

The full-year forecasts are ¥23,000 million in revenue, ¥1,000 million in operating profit, ¥950 million in ordinary profit and ¥600 million in net income attributable to owners of the parent. As of the results announcement, the company had not revised its forecasts. H1 progress was 44.4% for revenue, 41.0% for operating profit, 45.6% for ordinary profit and 34.8% for net profit. Assuming H1 and H2 are simply equal in size, the company will need to generate ¥12,791.8 million in revenue, ¥590.3 million in operating profit, ¥517.1 million in ordinary profit and ¥391.5 million in net profit during the remaining period to meet its full-year plan.

However, launches of digital content, contract development projects and games vary depending on project and title timing, so it would not be appropriate to judge performance solely against a simple 50% benchmark. For FY2026-Q3, in addition to whether nine-month cumulative revenue exceeds ¥17,250 million and operating profit exceeds ¥750 million, the key point will be which segments will generate the ¥590 million in operating profit required in H2. The interim summary did not disclose the amount of profit contribution by project or specific project backlogs sufficient to cover the profit required in H2. It will therefore be important to see whether the company can explain quantitatively why it has maintained its full-year forecast.