August

KLab Q3 2015 Financial Results

KLab’s financial results for the third quarter of 2015 reflect a period of growth compared to the previous quarter, though performance fell short of internal guidance.

• KLab reported Q3 2015 revenue of 6,135 million yen and an operating profit of 720 million yen, representing sequential growth of 27.9% and 35.3% respectively.
• Despite quarterly growth, the company missed its internal revenue guidance by 5.6% and its operating profit target by 28.0%, with ordinary income falling 15% due to foreign exchange losses.
• The company issued conservative Q4 guidance of 5,000 million yen in revenue and zero operating profit, citing anticipated declines in core titles and 600 million yen in planned promotional spending.

GameStop Quarterly Report: Q3 2015

GameStop’s performance for the 26-week period ending August 1, 2015, reflects a deliberate strategic pivot toward diversification to mitigate the inherent volatility of the video game console market.

• GameStop reported net sales of $1.76 billion for the 13 weeks ended August 1, 2015, a slight increase from $1.73 billion in the same period of 2014, despite significant headwinds from foreign exchange rate fluctuations.
• The company acquired Geeknet, Inc. on July 17, 2015, for a net cost of $126 million, aiming to expand its presence in the collectibles market.
• Technology Brands segment sales grew by $85.8 million over the 26-week period, driven by the expansion of Spring Mobile (AT&T/Cricket Wireless) and Simply Mac store operations.

IGG Inc Interim Results: August 2015

IGG Inc’s interim results for the first half of 2015 demonstrate the company’s transition into a global mobile-first gaming developer and operator.

• IGG Inc generated $103.8 million in revenue for H1 2015, a 12.9% increase year-over-year, with mobile gaming accounting for 93.4% of total revenue.
• The company holds a strong liquidity position with $173 million in net cash, providing significant capacity for future mergers and acquisitions.
• Revenue declined 6.3% in Q2 2015 compared to Q1, driven by a lack of new game launches and softening performance in existing titles.

Biz Daily: Is Agar.io this year's Flappy Bird?

The mobile game Agar.io emerged as the most downloaded iOS title in July 2015, mirroring the viral, rapid-growth trajectory previously established by Flappy Bird.

• Agar.io became the most downloaded iOS title in July 2015, mirroring the rapid viral growth trajectory of Flappy Bird.
• Despite its popularity—reaching the sixth most-played iPhone game in the U.S. during its peak—the game currently lacks in-app purchases and relies entirely on advertising.
• Miniclip faces a significant challenge in introducing monetization to Agar.io without alienating a user base accustomed to the free, non-monetized experience of its original browser-based version.

Nexon Third Quarter 2014 Financial Results

Nexon’s third quarter 2014 financial results demonstrate a period of strong growth, with revenues and operating income surpassing initial company forecasts.

• Nexon reported Q3 2014 revenues of 45.6 billion Yen, representing a 14 percent year-over-year increase that exceeded company forecasts.
• Net income rose 69 percent year-over-year to 13.6 billion Yen, primarily driven by foreign exchange gains from the weakening Yen.
• Mobile operations generated 9.7 billion Yen, with native mobile game revenues surging 50 percent quarter-over-quarter.

IGG Inc. 2014 Third Quarterly Results

IGG Inc.’s third-quarter 2014 results demonstrate a period of significant financial expansion and strategic transition toward a mobile-first business model.

• IGG Inc. reported $52.2 million in Q3 2014 revenue, a 132% increase year-over-year, alongside an adjusted net income of $19 million, representing a 265% increase.
• Mobile games now account for 87% of total revenue, following the company's strategic decision to cease expansion of its browser and client-based gaming segments.
• Flagship titles are the primary growth drivers, with Castle Clash generating $32 million and the Clash of Lords series contributing nearly $10 million in the quarter.

Notice Concerning the Revision of Earnings Forecasts

KLab Inc. has significantly revised its consolidated mid-term earnings forecasts for the fiscal period ending December 31, 2014, reflecting a substantial improvement in financial performance compared to previous projections.

• KLab Inc. revised its mid-term earnings forecast for the first half of 2014, shifting from a 597 million yen net loss in 2013 to a projected net profit of 541 million yen.
• Operating income projections were increased by 222.2% and net income projections by 283.7% compared to previous guidance for the period ending June 30, 2014.
• Revenue expectations for the mid-term period were raised to 9.58 billion yen, a 7.4% increase over the company's prior forecast.

Nexon Consolidated Financial Results for the Three Months Ended March 31, 2014

Nexon demonstrated stable financial growth during the first quarter of 2014, reporting revenue of 47,491 million yen and operating income of 21,171 million yen.

• Nexon reported Q1 2014 revenue of 47,491 million yen and operating income of 21,171 million yen, marking year-on-year increases of 7.0% and 2.2%, respectively.
• Growth was driven primarily by the Korean market through FIFA Online 3 and Legion of Heroes, alongside consistent royalty revenue from Dungeon&Fighter in China.
• Management anticipates a contraction in operating margins for the first half of 2014 due to a shift toward lower-margin regions and increased personnel and royalty expenses.

DeNA Q4 FY2013 Financial Results

DeNA’s financial results for the fourth quarter of fiscal year 2013 reflect a period of structural transition as the company shifts its focus from browser-based games to native mobile applications.

GameStop Quarterly Report: Q3 FY2014

GameStop’s financial performance for the second quarter of fiscal year 2013 reflects the challenges inherent in the final stages of a console hardware cycle.

• GameStop's gross profit decreased by $37.9 million (7.3%) to $481.4 million for the 13 weeks ended August 3, 2013, compared to the same period in 2012.
• Gross profit as a percentage of net sales improved from 33.5% to 34.8% during the 13-week period, driven by a shift in sales mix toward pre-owned, mobile, and digital products.
• New video game hardware and software sales declined significantly due to the late stages of the console cycle, with management noting that future growth depends on upcoming next-generation console launches.

Mobile games industry news (w/e 30 August 2013)

The mobile games industry in late August 2013 was defined by significant shifts in hardware strategy, developer tool accessibility, and the evolving role of platform holders in publishing.

• Unity Technologies expanded its business model to include game publishing, leveraging its developer base to curate and distribute titles while forming a strategic partnership with Facebook for social integration.
• Nintendo launched the 2DS to address hardware costs, despite the 3DS platform reaching 32 million units sold, highlighting the company's ongoing struggle to adapt its hardware-centric model to the modern mobile market.
• Autodesk released Maya LT, a streamlined and affordable version of its 3D software, signaling a trend toward making professional-grade production tools accessible to independent mobile studios.

Mobile games industry news (w/e 16 August 2013)

The mobile games industry in mid-August 2013 was characterized by significant capital investment, strategic consolidation, and a focus on data-driven advertising models.

• Baidu acquired the Android app distribution channel 91 Wireless for $1.85 billion to strengthen its position in the Chinese mobile market.
• Millennial Media bid $225 million to acquire JumpTap, a move aimed at consolidating gaming-focused mobile advertising networks.
• The Japanese mobile games market reached a valuation of $5.1 billion in 2012, with feature phones still maintaining a significant 50% share of the market alongside smartphones.