COVER Corporation sharply revised its earnings forecast for the cumulative second quarter of the fiscal year ending March 2027. Strong performance from the smartphone game “hololive Dreams” led to a significant increase in interim operating profit.
COVER Corporation announced on the 24th that it had revised upward its earnings forecast for the cumulative second quarter of the fiscal year ending March 2027. Before the revision, revenue was forecast at ¥2.227 billion, operating profit at ¥1.93 billion, ordinary profit at the same amount and interim net profit at ¥1.35 billion. After the revision, revenue remains unchanged, while operating profit is expected to be ¥3.5 billion, ordinary profit ¥3.4 billion and interim net profit ¥2.3 billion. The resulting upward revisions were 81.3% for operating profit, 76.2% for ordinary profit and 70.4% for interim net profit.
The main factors behind the revision included the stronger-than-expected initial performance of the jointly operated smartphone game “hololive Dreams” following its launch in July 2026, as well as progress in the licensing and tie-up business exceeding plan. Meanwhile, the merchandise business, including goods, progressed differently from plan because of inventory shortages and the timing of product launches, and the company said changes in the sales mix affected its cost structure.
The full-year earnings forecast remains unchanged. The company said it is difficult at this time to reasonably calculate the impact of the first-half upside factors on the second half and that it will continue to examine the matter.