Fiscal Year Ending March 2026: Second Quarter Interim Financial Results (Japanese Standards) (Consolidated)

Nippon Ichi Software reported a significant downturn in its consolidated financial results for the first half of the fiscal year ending March 2026, covering the period from April 1, 2024, to September 30, 2024. Net sales fell by 49.2% year-over-year to 1.24 billion yen. The company recorded an operating loss of 322 million yen and a net loss attributable to owners of the parent of 224 million yen, deepening the losses compared to the same period in the previous fiscal year.

The entertainment segment, which constitutes the core of the business, saw sales drop by 50.6% to 1.18 billion yen, resulting in a segment loss of 95 million yen. This decline occurred despite the release of titles such as Fuuraiki 5 and Renju, alongside ongoing localization and global distribution efforts on platforms like PlayStation Network, Nintendo eShop, and Steam. The company also operates a smaller student dormitory business in Gifu Prefecture, which saw a 25.1% increase in sales but remained unprofitable with an 8 million yen operating loss.

The financial position remains stable with a 67.2% equity ratio and total assets of 11.2 billion yen. Cash and cash equivalents decreased by 1.54 billion yen during the period, primarily due to significant outflows for time deposits and investments in tangible fixed assets. Despite the weak interim performance, the company maintained its full-year forecast for the fiscal year ending March 2026, projecting 4.77 billion yen in sales and a return to profitability with 31 million yen in net income. The dividend forecast remains unchanged at 5 yen per share.