FinancialKLab
Summary of Financial Results for First Half of Fiscal Year Ending December 31, 2016
1 Aug 201613 pages~18 min full read
KLab Inc. reported a net loss of 1.34 billion yen for the first half of 2016, a significant reversal from the 665 million yen profit recorded during the same period in 2015.
See it on page 10Consolidated revenue fell 14.9% year-over-year to 8.88 billion yen, driven primarily by declining performance from the title Love Live! School Idol Festival.
See it on page 4Operating income plummeted 96.7% to 51 million yen, while the company recorded an ordinary loss of 746 million yen for the period ending June 30, 2016.
See it on page 4Extraordinary losses reached 867 million yen, including 757 million yen in impairment charges specifically tied to the titles Puzzle Wonderland and Age of Empires: World Domination.
See it on page 4The company incurred 752 million yen in foreign exchange losses resulting from the valuation of foreign currency assets.
See it on page 4Despite the financial downturn, KLab maintained a strong equity ratio of 78.4% as of the end of the first half of 2016.
See it on page 4Management withheld a full-year financial forecast due to mobile gaming industry volatility, projecting only a 797 million yen net loss for the first three quarters of 2016.
See it on page 5KLab Inc. reported a significant downturn in financial performance for the first half of the fiscal year ending December 31, 2016, covering the period from January 1 to June 30, 2016. Consolidated revenue fell 14.9% year-over-year to 8.88 billion yen, primarily driven by declining contributions from the title Love Live! School Idol Festival. The company’s profitability metrics showed a sharper decline, with operating income plummeting 96.7% to 51 million yen. The period concluded with an ordinary loss of 746 million yen and a net loss attributable to owners of the parent of 1.34 billion yen, a stark reversal from the 665 million yen profit recorded in the same period of 2015.
The financial results were heavily impacted by non-operating and extraordinary items. The company recorded 752 million yen in foreign exchange losses due to the valuation of foreign currency assets. Furthermore, extraordinary losses reached 867 million yen, largely stemming from 757 million yen in impairment losses related to the titles Puzzle Wonderland and Age of Empires: World Domination. Despite these losses, KLab maintained a strong equity ratio of 78.4%, though total assets decreased by 1.82 billion yen compared to the end of the previous fiscal year.
Looking forward, the company provided a forecast for the first three quarters of 2016, projecting revenue of 14.88 billion yen and an operating income of 1 billion yen, though it anticipates a net loss of 797 million yen for that period. A full-year forecast was withheld due to the inherent volatility of the mobile gaming industry and the difficulty of predicting hit products. Methodologically, the report follows Japanese GAAP and notes changes in accounting policies regarding business combinations and depreciation methods for certain facilities.
