FinancialNippon Ichi Software
Fiscal Year Ending March 2026: Second Quarter Interim Financial Results (Japanese Standards) (Consolidated)
1 Nov 202512 pages~5 min full read
Nippon Ichi Software reported a 49.2% year-over-year decline in net sales to 1.24 billion yen for the first half of the fiscal year ending March 2026.
The company recorded a consolidated operating loss of 322 million yen and a net loss of 224 million yen for the six-month period ending September 30, 2024.
The core entertainment segment experienced a 50.6% drop in sales to 1.18 billion yen, resulting in a segment loss of 95 million yen despite the release of titles like Fuuraiki 5 and Renju.
Management has maintained its full-year forecast, projecting 4.77 billion yen in sales and a return to profitability with 31 million yen in net income for the fiscal year ending March 2026.
Cash and cash equivalents decreased by 1.54 billion yen during the period, driven primarily by outflows for time deposits and investments in tangible fixed assets.
The company's secondary student dormitory business in Gifu Prefecture saw a 25.1% increase in sales but remained unprofitable with an 8 million yen operating loss.
Despite the weak interim financial performance, the company maintains a stable equity ratio of 67.2% and has kept its dividend forecast at 5 yen per share.
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.
