FY2027-Q1 leads the full-year plan on profit, with repeatability in the first half the key focus

FY2027-Q1 revenue was ¥78.423 billion, operating profit was ¥17.008 billion, ordinary profit was ¥18.766 billion, and net profit attributable to owners of the parent was ¥13.244 billion. Year on year, revenue rose 32.3%, operating profit 88.6%, ordinary profit 172.4%, and net profit 175.7%, with profit growth substantially outpacing revenue growth.

The full-year plan calls for revenue of ¥298.0 billion, operating profit of ¥49.0 billion, ordinary profit of ¥49.0 billion, and net profit of ¥31.0 billion, and had not been revised as of Q1. Q1 progress against the full-year plan was 26.3% for revenue, 34.7% for operating profit, 38.3% for ordinary profit, and 42.7% for net profit. With progress from operating profit downward exceeding that for revenue, the key points for the next results announcement will be first-half cumulative margins and how the full-year forecasts are treated.

Revenue was ¥59.275 billion and operating profit was ¥9.018 billion in the same period of the previous year, so operating profit increased by ¥7.990 billion. The Q1 operating margin was 21.7%, up approximately 6.5 percentage points from approximately 15.2% a year earlier. However, Q1 can be a period in which sales of new and catalog titles and the launch of game-related products are concentrated. To conclude that the full-year planned margin of 16.4% will simply be exceeded, it is necessary to confirm second-half title launches and expense recognition.

The earnings presentation stated that all 4 reporting segments posted higher revenue and profit year on year. However, it did not disclose selling, general and administrative expenses, cost of sales, title-specific assumptions incorporated into the full-year forecasts, or the profit level required over the remaining 9 months. At the next results announcement, it will be important to check cumulative second-quarter operating profit, the operating margin, and whether the full-year forecasts are revised, as well as whether Q1's high margin reflects a temporary contribution from new and catalog sales or a sustained improvement in profitability, including optimization of operating costs.