Aiming Q1 2022 Quarterly Report

Key insights

6 takeaways

01
Aiming Inc. reported a 40.6% year-on-year decline in operating profit to 336 million yen for Q1 2022, alongside a 5.5% decrease in net sales to 3,342 million yen.See it on page 3
02
The financial downturn was driven by weakening KPIs across existing game titles and increased spending on personnel, outsourcing, and marketing for projects like Dragon Quest Tact.See it on page 3
03
Despite lower profitability, the company’s total assets grew to 7,419 million yen by March 31, 2022, primarily due to an increase in cash and deposits.See it on page 8
04
The company is managing rising development costs and longer production timelines in the competitive Japanese smartphone game market by focusing on new releases such as Galaxy Legend: Die Neue Saga.See it on page 3
05
New accounting standards for revenue recognition were adopted at the start of the fiscal year, though they had no material impact on the quarterly profit or loss.See it on page 10
06
The independent auditor issued an unmodified review opinion, and the company reported no significant changes to its business model or risk profile during the quarter.See it on page 17

Summary

This quarterly report for Aiming Inc. covers the first quarter of the fiscal year ending December 31, 2022, spanning the period from January 1, 2022, to March 31, 2022. The company operates within the Japanese smartphone online game industry, focusing on the development and operation of free-to-play titles. The report provides a financial overview and operational update, confirming that there were no significant changes to the company’s business model or risk profile during this period.

Financial performance for the first quarter showed a decline compared to the same period in the previous year. Net sales reached 3,342 million yen, a 5.5% decrease year-on-year, while operating profit fell by 40.6% to 336 million yen. This downturn is attributed to a decline in key performance indicators (KPIs) across existing game titles, alongside increased expenditures in personnel, outsourcing, and advertising to support new development projects and promotional activities for titles such as Dragon Quest Tact. Despite these challenges, the company maintained a stable financial position, with total assets increasing to 7,419 million yen, primarily driven by growth in cash and deposits.

The company continues to navigate a highly competitive domestic market characterized by rising development costs and longer production timelines. Strategic efforts remain focused on expanding the service portfolio and enhancing the quality of titles in development, including the preparation for new releases like Galaxy Legend: Die Neue Saga. The financial statements were prepared in accordance with new accounting standards for revenue recognition, which were adopted at the beginning of the fiscal year, though these changes did not materially impact the quarterly profit or loss. The report concludes with an unmodified review opinion from the company’s independent auditor.