Aiming Quarterly Financial Report: Q3 2019

Key insights

6 takeaways

01
Aiming reported a net loss of 764 million yen on net sales of 4,250 million yen for the nine-month period ending September 30, 2019.See it on page 12
02
The company addressed going concern uncertainties by securing capital through third-party allotment and implementing an early retirement program to reduce personnel costs.See it on page 4
03
Operational expenses and sales costs decreased during the period, driven by a reduced workforce and the capitalization of development costs.See it on page 5
04
Aiming launched 'Logres Stories' in September 2019 and expanded 'CARAVAN STORIES' to the North American PlayStation 4 market to diversify revenue streams.See it on page 4
05
The company continues to rely on core titles 'Sword and Magic Logres: Ancient Goddesses' and 'CARAVAN STORIES' to navigate a domestic market pressured by high-profile competition and rising development costs.See it on page 4
06
Azusa Audit Corporation reviewed the financial statements and confirmed no material discrepancies in the company's reported financial position.See it on page 17

Summary

The Aiming Quarterly Financial Report for the third quarter of 2019 outlines the financial performance and operational status of the Tokyo-based online game developer. During the nine-month period ending September 30, 2019, the company reported a net loss of 764 million yen on net sales of 4,250 million yen. Despite these losses, the company maintains that it has addressed significant uncertainties regarding its status as a going concern through capital procurement via third-party allotment and the implementation of an early retirement program designed to optimize personnel and transition toward a profitable structure.

The report highlights a challenging domestic market environment characterized by intense competition from high-profile intellectual property titles and rising development costs due to increased technical requirements. To mitigate these pressures, the company focused on maintaining and expanding its core titles, such as "Sword and Magic Logres: Ancient Goddesses" and "CARAVAN STORIES," while launching the collaborative title "Logres Stories" in September 2019. Furthermore, the company expanded its reach by launching the PlayStation 4 version of "CARAVAN STORIES" in the North American market to maximize revenue through multi-platform utilization.

Financially, the company saw a reduction in both sales costs and selling, general, and administrative expenses compared to previous periods, attributed to the capitalization of development costs and a reduced workforce. While the company continues to report operating and recurring losses, management emphasizes that ongoing cost optimization, strategic title selection, and stable funding efforts are sufficient to support operations. The financial statements were reviewed by Azusa Audit Corporation, which found no material discrepancies in the reported financial position or performance for the period.