Mobile game revenue continues to grow, but slows in April–June

For the first half of the fiscal year ending December 2026, consolidated revenue was ¥1,686.524 million and operating profit was ¥561.342 million, up 1.8% and 2.5%, respectively, year on year. Within this, the mobile game business generated revenue of ¥1,568.556 million and segment profit of ¥475.575 million, up 2.7% and 4.7%, respectively. The structure in which the core business supports consolidated performance while absorbing the decline in the content business remains in place.

However, according to the earnings presentation, standalone revenue for April–June was ¥937 million, while EBITDA and operating profit were each ¥352 million, down 2.5% and 4.5%, respectively, year on year. The company attributed the decline to a change in the timing of battle events compared with the prior-year period and weakness in some existing products. Accordingly, the third-quarter assessment should not focus solely on the 2.7% increase for the first half. It should also confirm whether the event-timing discrepancy was resolved in July–September and whether new revenue opportunities, including accessory gacha, season passes and new features, offset the slowdown in the standalone quarter.

The full-year forecasts remain unchanged at ¥3,500 million in revenue and ¥1,170 million in operating profit, with first-half progress of 48.2% and 48.0%, respectively. On a mechanical 75% basis that does not account for seasonality, cumulative third-quarter revenue of ¥2,625 million and operating profit of ¥877.5 million represent one reference point. However, the company has not disclosed the amount required in the third quarter or the revenue contribution of individual initiatives. We will therefore focus not only on simple progress against the forecasts, but also on whether revenue and segment profit from the core titles remain above the prior-year levels.