FinancialKLab
Summary of Financial Results for Second Quarter of Fiscal Year Ended December 31, 2022
1 Aug 202210 pages~19 min full read
KLab Inc. reported a 32.3% year-over-year revenue decline to 8,357 million yen for the first half of 2022.
See it on page 1The company recorded a net loss of 342 million yen, driven by a 410 million yen impairment loss on software within its Game Business segment.
See it on page 8Operating losses narrowed to 446 million yen from 842 million yen in the prior-year period, while ordinary income reached 111 million yen, supported by 465 million yen in foreign exchange gains.
See it on page 7To bolster liquidity, the company secured approximately 5.1 billion yen through the issuance of stock acquisition rights to Morgan Stanley MUFG Securities and established a 4 billion yen credit line with MUFG Bank.
See it on page 10The adoption of new revenue recognition standards for in-game currency reduced reported revenue by 53 million yen for the period.
See it on page 7The company maintains a solid financial position with an equity ratio of 64.1% and total assets of 19,296 million yen.
See it on page 4KLab Inc. has declined to provide full-year financial forecasts, citing the inherent volatility of the mobile gaming industry.
See it on page 1KLab Inc. reports consolidated financial results for the first half of fiscal year 2022, covering the period from January 1 to June 30, 2022. The primary purpose of the disclosure is to provide a comprehensive overview of the company’s financial health, operating performance, and strategic adjustments under Japanese GAAP. The scope focuses on the Japanese mobile gaming market and related research and consulting segments.
Financial data indicates a challenging period characterized by a significant decline in revenue, which fell 32.3% year-over-year to 8,357 million yen. Despite this contraction, the company narrowed its operating loss to 446 million yen compared to a loss of 842 million yen in the same period of the previous year. Ordinary income turned positive at 111 million yen, largely bolstered by 465 million yen in foreign exchange gains. However, the company recorded a net loss attributable to owners of the parent of 342 million yen, impacted by extraordinary losses including a 410 million yen impairment loss on software within the Game Business segment.
Methodologically, the results reflect the first-time application of the Accounting Standard for Revenue Recognition. This change shifted revenue recognition for in-game currency from the time of exchange to an estimated period of use, resulting in a 53 million yen decrease in reported revenue for the period. The consolidated balance sheet shows total assets of 19,296 million yen and a solid equity ratio of 64.1%.
Looking ahead, the company maintains a policy of non-disclosure regarding full-year forecasts due to the volatility of the mobile gaming industry. Significant subsequent events include the issuance of the 18th Stock Acquisition Rights to Morgan Stanley MUFG Securities to procure approximately 5.1 billion yen and the establishment of a 4 billion yen credit line with MUFG Bank to ensure future liquidity and financial stability.
