Aiming FY2015 Financial Results Presentation

Key insights

7 takeaways

01
Aiming exceeded its FY2015 financial targets, reporting 12.17 billion yen in revenue (109.5% of target) and 2.88 billion yen in operating profit (102.9% of target).See it on page 4
02
The flagship mobile title 'Logres of Swords and Sorcery' remains the primary revenue driver, supported by sustained user engagement and international expansion into markets like Taiwan.See it on page 22
03
The company is scaling its development pipeline with 10 new titles currently in progress, utilizing a combination of internal development, licensing, and joint-venture strategies.See it on page 23
04
Operating profit declined sequentially in Q4 2015 due to increased advertising expenditures and higher royalty payments from international licensing and revenue-sharing agreements.See it on page 13
05
Aiming expanded its workforce to 603 employees by the end of 2015 to support its ongoing development and operational requirements.See it on page 4
06
Management anticipates a revenue dip in Q1 2016 following the conclusion of year-end promotional campaigns but plans to prioritize profitability through stricter cost controls.See it on page 27
07
Due to the volatility of the mobile gaming sector, the company has adopted a conservative forecasting strategy, providing financial guidance on a quarterly rather than annual basis.See it on page 27

Summary

Aiming’s financial results for the fiscal year ending December 2015 demonstrate significant growth, with the company exceeding its annual performance forecasts. The firm reported annual revenue of 12.17 billion yen and an operating profit of 2.88 billion yen, representing 109.5% and 102.9% of their respective targets. This growth trajectory is supported by a robust portfolio of mobile online games, particularly the flagship title "Logres of Swords and Sorcery," which continues to drive revenue through long-term engagement and international expansion into markets such as Taiwan.

The company’s business model focuses on the development and operation of Massively Multiplayer Online (MMO) games for smartphones, leveraging proprietary real-time communication technology and a development process that emphasizes rigorous quality reviews. As of the end of 2015, the company employed 603 staff members, reflecting a strategic increase in human capital to support its development pipeline. Currently, the firm is actively developing 10 new titles using a mix of internal development, licensing, and joint-venture schemes to diversify its offerings.

While the company achieved strong annual results, the fourth quarter of 2015 saw a sequential decline in operating profit compared to the third quarter. This was primarily attributed to increased expenditures in advertising and promotion, as well as higher royalty payments associated with international licensing and revenue-sharing agreements. Looking ahead to the first quarter of 2016, the company anticipates a temporary revenue dip following the end of strong year-end promotional campaigns but expects to improve profitability through disciplined cost control. The company maintains a professional outlook, noting that the volatile nature of the mobile gaming industry necessitates a cautious approach to long-term forecasting, with guidance provided on a quarterly basis.