Aiming 2018 Full-Year Financial Results Briefing

Key insights

6 takeaways

01
Aiming posted a second consecutive year of operating losses in 2018, with revenue of 7.314 billion yen, 6% below its initial forecast but up from 6.829 billion yen in 2017.See it on page 24
02
The operating deficit narrowed to 1.486 billion yen from 2.949 billion yen in 2017, mainly due to lower development costs for its flagship title, Caravan Stories.See it on page 7
03
Total assets contracted to 4.902 billion yen at the end of 2018 from 6.969 billion yen a year earlier, with cash and deposits declining significantly.See it on page 6
04
Q4 2018 revenue rose 3.8% quarter-on-quarter, helped by anniversary events for Logres and the launch of Gestalt Odin, but higher marketing and personnel costs produced a Q4 operating loss of 366 million yen.See it on page 9
05
For 2019 Aiming is halting internal development due to high cost burdens and pivoting toward joint development and IP-based projects, including a capital and business alliance with Delightworks and partnerships with Shanghai Giant Network Technology.See it on page 20
06
To return to profitability, the company plans to optimize personnel allocation, liquidate its Philippine subsidiary, and prioritize global distribution.See it on page 11

Summary

The 2018 full-year financial results for Aiming reflect a challenging period characterized by a second consecutive year of operating losses. The company reported annual revenue of 7.314 billion yen, falling 6% short of its initial forecast. While this represents a slight increase over the 6.829 billion yen recorded in 2017, the company failed to meet profitability targets due to the underperformance of both new and existing game titles. Despite these losses, the company successfully reduced its annual operating deficit to 1.486 billion yen, compared to a 2.949 billion yen loss in the previous year, largely driven by decreased development costs for its flagship title, Caravan Stories.

The company’s financial position at the end of 2018 showed a contraction in total assets to 4.902 billion yen, down from 6.969 billion yen at the end of 2017, with cash and deposits declining significantly. Quarterly analysis reveals that the fourth quarter saw a slight revenue increase of 3.8% compared to the third quarter, supported by anniversary events for the long-running title Logres and the launch of new titles such as Gestalt Odin. However, increased marketing expenditures and personnel costs contributed to a fourth-quarter operating loss of 366 million yen.

Strategic shifts for 2019 focus on stabilizing the business through a pivot toward joint development and IP-based projects, while halting internal development due to high cost burdens. The company has entered into a capital and business alliance with Delightworks to co-develop new smartphone games and has expanded its pipeline with additional joint ventures, including partnerships with Shanghai Giant Network Technology. Moving forward, the company intends to optimize personnel allocation, liquidate its Philippine subsidiary, and prioritize global distribution to improve operational efficiency and return to profitability.