Aiming FY2020 Q2 Financial Results

The financial results for Aiming for the second quarter of the fiscal year ending December 2020 reflect a period of ongoing operational losses, though the company demonstrates a narrowing deficit compared to the previous year. For the six-month period ending June 30, 2020, the company reported net sales of 2.43 billion yen, representing a 17.8% decline year-over-year. Despite this drop in revenue, the company successfully reduced its operating loss to 181 million yen, down from 375 million yen in the same period of 2019. The net loss for the quarter was 197 million yen, a significant improvement over the 469 million yen loss recorded in the prior year.

The company operates exclusively within the smartphone-focused online game industry. To address persistent losses and stabilize its financial position, the company has implemented several strategic measures. These include optimizing operational efficiency for existing titles such as "Logres of Swords and Sorcery" and "Caravan Stories," as well as streamlining its organizational structure through the divestiture of its Osaka studio and personnel adjustments at its Taiwan studio. Furthermore, the company anticipates that the launch of "Dragon Quest Tact," developed in collaboration with Square Enix, will contribute positively to earnings starting in the third quarter.

Financial stability has been bolstered by capital procurement efforts, specifically through the issuance and exercise of the seventh series of stock acquisition rights, which provided approximately 1.69 billion yen in funding during the first half of the year. While the company acknowledges that historical losses have raised questions regarding its status as a going concern, management maintains that these strategic initiatives and improved liquidity mitigate such uncertainties, allowing the business to continue operations without significant doubt.