Game Arts

GungHo Online Entertainment FY2005 Q3 Financial Results

GungHo Online Entertainment’s financial results for the third quarter of the fiscal year ending December 2005 reflect a period of significant business expansion and strategic investment, despite a decline in short-term profitability.

• GungHo Online Entertainment reported a 13.8% year-over-year increase in net sales to 3,494 million yen, driven by the performance of Ragnarok Online and the expansion of its portfolio to eight online games.
• Operating profit plummeted 78.6% to 76 million yen, while quarterly net profit fell 97.3% to 11 million yen, largely due to a 521 million yen increase in advertising and service launch expenses.
• The company significantly increased its debt load to fund operations and strategic investments, resulting in a 5,531 million yen surplus from financing activities.