FY2026-Q3 cumulative forecast assumes a substantial recovery after the first half

FY2026-H1 revenue was ¥6,871 million, operating profit was ¥529 million, ordinary profit was ¥358 million, and interim net profit attributable to owners of the parent was ¥383 million. Compared with revenue of ¥8,989 million, operating profit of ¥1,843 million, ordinary profit of ¥1,118 million and interim net profit attributable to owners of the parent of ¥827 million in the same period of the previous year, revenue fell 23.6% and operating profit fell 71.3%. The operating margin calculated from the reported figures also fell from approximately 20.5% in the same period of the previous year to approximately 7.7% in the current interim period, showing that the decline in profit was greater than the decline in revenue.

The current forecast covers the cumulative third quarter from January to September 2026, rather than the full year. Subtracting the FY2026-H1 results from the forecasts for revenue of ¥11,351 million, operating profit of ¥1,012 million, ordinary profit of ¥682 million and profit attributable to owners of the parent of ¥622 million gives required standalone third-quarter figures of ¥4,480 million in revenue, ¥483 million in operating profit, ¥324 million in ordinary profit and ¥239 million in net profit. These figures are not the company's standalone third-quarter forecasts; they are mechanical calculations based on the first-half results and cumulative forecasts.

FY2025-Q3 cumulative revenue was ¥12,639 million and operating profit was ¥2,098 million. Accordingly, the FY2026-Q3 cumulative forecast represents year-on-year declines of approximately 10.2% in revenue and 51.8% in operating profit. In other words, the company expects some recovery from the sharp decline in first-half profit, but does not plan to return to the previous year's profit level. The required standalone third-quarter operating profit of ¥483 million would require revenue of approximately ¥6,300 million assuming the first-half operating margin of 7.7%, meaning that contributions from high-revenue titles and high-margin projects will be essential to achieving the forecast.

In the next results, it will be necessary to check not only the cumulative third-quarter results, but also which titles and services contributed to revenue of ¥4,480 million and operating profit of ¥483 million. The FY2026-H1 earnings release did not disclose the amounts contributing to changes in performance and did not provide a full-year forecast. In addition to the cumulative third-quarter results, important verification points will include whether the company discloses its fourth-quarter outlook, title-by-title revenue and user metrics, and the levels of advertising and development expenses.