Aiming FY2016 Q2 Financial Results

Aiming’s financial results for the second quarter of the fiscal year ending December 2016 reflect a period of significant contraction in profitability. The company reported net sales of 4,381 million yen, representing a 31.4% decrease compared to the same period in the previous year. Operating profit, ordinary profit, and net profit attributable to owners of the parent all experienced sharp declines of approximately 88.5% to 88.9%. These results were driven by increased development and advertising costs, alongside a challenging market environment for existing titles.

The company operates within the smartphone-based online game industry, focusing on both domestic and international markets, including China and Southeast Asia. During this period, the firm prioritized the expansion of its title pipeline, notably launching "Sky and Earth Cross Noah" and assuming full development and operation of "Phantom Tower Chronicle Gryphon." While flagship titles like "Logres of Swords and Sorcery: Goddess of Ancient" showed signs of stabilization in active users and monetization, the overall financial performance remained under pressure.

Financially, the company maintained a solid equity ratio of 71.0%, though it saw a notable increase in long-term debt to 1,613 million yen. Cash and cash equivalents rose to 8,278 million yen, supported by financing activities despite negative cash flow from operations. Looking ahead to the third quarter, the company projects continued losses, citing planned advertising expenditures for new titles and increased outsourcing costs for ongoing development. To incentivize future performance, the board approved the issuance of stock acquisition rights to 90 directors and employees, with exercise conditions tied to specific future operating profit milestones.