Updated Mar 23, 2026 by KLab
Financial
Published by KLab
KLab Inc. reported consolidated financial results for the first half of fiscal year 2015 (January 1–June 30, 2015) under Japanese GAAP. Revenue rose 8.9 % to ¥10,435 million, driven by the launch of new mobile titles such as “Love Live! School Idol Festival.” Operating income surged 122.9 % to ¥1,552 million, while ordinary and net income increased 130.3 % and 22.9 %, respectively, to ¥1,612 million and ¥666 million. Net income per diluted share reached ¥18.35, up from ¥16.40 in the same period of FY2014. Total assets increased to ¥13,187 million, with net assets rising 8.6 % to ¥9,884 million and an equity ratio of 74.6 %. The company’s balance sheet showed a modest decline in current liabilities and an increase in intangible assets, reflecting investment in intellectual property. Treasury stock purchases of 90 000 shares (¥128.5 million) were completed in July to improve capital efficiency. KLab’s forecast for the first three quarters of FY2015 projects revenue of ¥16,935 million and net income of ¥1,316 million. The company notes that operating performance is highly sensitive to the success of new releases and therefore refrains from full‑year forecasts. No significant accounting policy changes affected the period, aside from the adoption of a special tax‑effect treatment and an employee stock ownership plan implemented through a trust. The company’s dividend policy remained unchanged, with no dividends declared for FY2015.
Summary of Financial Results for First Half of Fiscal Year Ending December 31, 2015 (Japanese GAAP) (Consolidated) hall p This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. August 6, 2015 Name of listed company: KLab Inc. Stock exchange listing: Tokyo Stock Exchange First Section Securities code: 3656 URL: http://www.klab.com/jp/ Representative: [Name] Tetsuya Sanada [Title] President & CEO Contact: [Name] Kazuyuki Takata [Title] Managing Director TEL: +81-3-4500-9077 Scheduled filing date for securities report: August 6, 2015 Scheduled date for dividends payment: - Supplementary information for quarterly results: Yes Information meeting for quarterly financial report: Yes *Institutional investors and analysts only (Amounts of less than one million yen are rounded off) 1. Consolidated Operating Performance for First Half of FY2015 (January 1, 2015 – June 30, 2015) (1) Consolidated Operating Results (year-to-date) (% represents rate of increase or decrease over same period of previous fiscal year) Revenue Operating income Ordinary income Net income Million yen % Million yen % Million yen % Million yen % First half of FY2015 10,435 8.9 1,551 122.9 1,612 130.3 665 22.9 First half of FY2014 9,585 34.6 696 — 700 — 541 — Note: Comprehensive income First half of FY2015: 656 million yen [20.2%] First half of FY2014: 546 million yen [―%] Net income Diluted net income per share per share Yen Yen First half of FY2015 18.35 17.93 First half of FY2014 16.40 15.83 (2) Consolidated Financial Status
34.6 696 — 700 — 541 — Note: Comprehensive income First half of FY2015: 656 million yen [20.2%] First half of FY2014: 546 million yen [―%] Net income Diluted net income per share per share Yen Yen First half of FY2015 18.35 17.93 First half of FY2014 16.40 15.83 (2) Consolidated Financial Status Total assets Net assets Equity ratio Million yen Million yen % First half of FY2015 13,186 9,883 74.6 FY2014 12,731 9,075 70.8 Reference: Shareholders’ equity First half of FY2015: 9,837 million yen FY2014: 9,019 million yen 2. Dividends Annual dividends End of Q1 End of Q2 End of Q3 Year End Total Yen Yen Yen Yen Yen FY2014 ― 0.00 ― 0.00 0.00 FY2015 ― 0.00 FY2015 (Forecast) ― 0.00 0.00 Note: Revisions to the most recently announced dividend forecast: None
3. Consolidated Operating Performance Forecasts for FY2015 (January 1, 2015 – September 30, 2015) (% represents rate of increase or decrease over same period of previous fiscal year) Revenue Operating income Ordinary income Net income Net income per share Million yen % Million yen % Million yen % Million yen % Yen First three quarters of 16,935 6.2 2,551 34.9 2,612 30.6 1,316 2.0 36.20 FY2015 Note: Revisions to the most recently disclosed business performance forecast: None
■ Explanatory Notes (1) Changes to major subsidiaries during first half of FY2015: None (2) Changes to accounting principles or treatment: Yes Note: Refer to “(1) Adoption of Special Accounting Treatment” in section “2. Summary Information (Notes)” on page 4 of Supporting Information. (3) Changes to accounting policies, estimates, and restatements ① Changes to accounting revision of accounting standards: Yes ② Changes other than ①: None ③ Changes to accounting estimates: None ④ Restatements: None Note: Refer to “(2) Changes in Accounting Policy, Accounting Estimates, and Restatements” in section “2. Summary Information (Notes)” on page 4 of Supporting Information. (4) Number of outstanding shares (common stock) ① Period end outstanding shares First half of 37,675,600 shares FY2014 37,291,500 shares (including treasury stock) FY2015 ② Period end treasury stock First half of 1,165,200 shares FY2014 1,174,000 shares FY2015 ③ Average outstanding shares First half of 36,277,376 shares First half of 33,028,012 shares during the period FY2015 FY2014 ■ Current Status of Quarterly Review Procedures Although the “Consolidated Quarterly Financial Results” are not subject to quarterly review procedures in accordance with the Financial Instruments and Exchange Act of Japan, the quarterly review procedures have been completed at the time of disclosure of the “Consolidated Quarterly Financial Results.”
ugh the “Consolidated Quarterly Financial Results” are not subject to quarterly review procedures in accordance with the Financial Instruments and Exchange Act of Japan, the quarterly review procedures have been completed at the time of disclosure of the “Consolidated Quarterly Financial Results.” ■ Explanation Note Regarding the Appropriate Usage of the Forecasts and Other Special Instructions The forecasts in this report are based on the current data available to the Company and certain reasonable assumptions and may vary according to various factors in the future. For forecasts, refer to “(3) Forecasts and various factors in the future” in section “1. Qualitative Information on Management Performance” on page 3 of Supporting Information.
Supporting Information INDEX 1. Qualitative Information on Management Performance 2 (1) Business operation 2 (2) Analysis of financial status 2 (3) Forecasts and various factors in the future 3 2. Summary Information (Notes) 4 (1) Adoption of Special Accounting Treatment 4 (2) Changes in Accounting Policy, Accounting Estimates, and Restatements 4 (3) Additional Information 4 3. Consolidated Financial Statements 6 (1) Consolidated balance sheets 6 (2) Consolidated statements of income 7 (3) Notes related to consolidated financial statements 9 (Notes related to going concern assumptions) 9 (Notes in case of significant change in shareholders’ equity) 9 [Segment information] 10 (Significant subsequent events) 12 - 1 -
KLab Inc. experienced a significant downturn during the third quarter of fiscal year 2025, characterized by an 18.6% year-over-year revenue decline to ¥4.93 billion. This contraction was primarily driven by weakening performance in established titles such as Captain Tsubasa: Dream Team and a general decrease in income from paid users within the game business. Despite aggressive cost-cutting measures and a ¥1.57 billion gain from the sale of investment securities, the company recorded a substantial net loss of ¥3.97 billion. This loss was largely precipitated by a massive ¥4.42 billion impairment charge on software assets related to EA SPORTS FC™ TACTICAL and a reduction in goodwill following the divestment of GlobalGear Co. Ltd. The financial strain resulted in a decrease of over ¥3.1 billion in total net assets, though the company mitigated some impact by raising approximately ¥719 million through the exercise of stock acquisition rights. While four consecutive years of operating deficits have prompted scrutiny regarding the company’s status as a going concern, management asserts that no material uncertainty exists. This confidence is based on steady progress with major intellectual properties, including Dragon Quest and My Hero Academia, alongside a strategic pivot toward generative AI and blockchain ventures to diversify future revenue streams. Operating within the Japanese market during a period of rapid industry volatility, the company has withheld future performance forecasts. The current strategy focuses on maintaining liquidity through strict cost controls and asset sales while transitioning the business model to leverage emerging technologies. Despite the current net losses and the impairment of software in progress, the segment profit of ¥592 million suggests that core operations remain functional as the group attempts to stabilize its capital position and return to long-term profitability.
KLab Inc. experienced a challenging first half of the fiscal year ending December 31, 2025, characterized by a 12.9% year-over-year revenue decline to 3,161 million yen and a substantial net loss of 4,748 million yen. This loss was primarily driven by a 4.43 billion yen impairment on software in progress, which contributed to a sharp reduction in total assets from 15.7 billion yen to 10.9 billion yen. Despite these pressures, the game business segment achieved a profit of 313 million yen, and operating losses showed slight improvement compared to the previous year. Due to ongoing volatility and the difficulty of projecting future performance, no full-year forecast has been provided, and interim dividends have been suspended. To stabilize its financial position and pivot its corporate strategy, the firm executed several capital-raising and restructuring initiatives. These included the sale of the subsidiary GlobalGear for 1.1 billion yen and the issuance of new stock acquisition rights. These rights are tied to rigorous performance hurdles, requiring the company to achieve over 1,000 million yen in non-game revenue and a market capitalization exceeding 10 billion yen before they can be exercised. These measures are designed to incentivize a recovery in market value and diversify revenue streams beyond traditional mobile gaming. Management remains focused on achieving profitability through aggressive cost-cutting, workforce optimization, and a refined development pipeline. While the company has faced four consecutive years of operating deficits and delays in the release of EA SPORTS FC™ TACTICAL, it maintains that there is no material uncertainty regarding its status as a going concern. Future growth is predicated on the successful launch of new projects, including a My Hero Academia title and an expansion into the hybrid casual gaming market. This strategic shift aims to balance the high-risk nature of major game development with more sustainable, diversified business operations.
Drecom Co., Ltd. reported its consolidated financial results for the first quarter of the fiscal year ending March 2026, covering the period from April 1, 2025, to June 30, 2025. The company’s primary mission centers on global entertainment expansion through the integration of intellectual property and technology. The financial results reflect a period of significant revenue growth offset by substantial impairment losses, leading to a net loss for the quarter. Total revenue for the first quarter reached 4,466 million yen, representing a 110.4% increase compared to the same period in the previous year. This growth was largely driven by the performance of the mobile game title Wizardry Variants Daphne. Despite this revenue surge, the company recorded an operating loss of 81 million yen and an ordinary loss of 107 million yen. A major factor in the quarterly performance was an extraordinary impairment loss of 1,563 million yen, attributed to the reassessment of future earnings for a mobile game title released in the previous fiscal year that performed below expectations. Consequently, the quarterly net loss attributable to owners of the parent company totaled 1,799 million yen. The company operates across two primary segments: the Game Business and the Content Business. The Game Business generated 4,327 million yen in sales, though segment profit declined by 51.6% due to increased variable and fixed costs associated with new title releases. The Content Business, which focuses on publishing and merchandise, saw revenue rise to 155 million yen, with a reduced segment loss of 204 million yen as the company continues to invest in new business areas. Following these results, the company has revised its full-year consolidated earnings forecasts for the fiscal year ending March 2026.
KLab Inc. experienced a significant financial downturn during the fiscal year ended December 31, 2024, characterized by a 22.5% year-over-year revenue decline to 8.3 billion yen. This contraction led to a net loss of 2.78 billion yen, a substantial increase from the 1.82 billion yen loss recorded in the previous year. The downturn was primarily driven by a reduced portfolio of active titles and the delayed global launch of EA SPORTS FC™ TACTICAL due to retention challenges. While established titles like Captain Tsubasa: Dream Team and BLEACH Brave Souls remained stable, the company faced 1.14 billion yen in extraordinary losses, including significant software impairments and valuation losses on investment securities. The company’s financial position weakened as it marked its fourth consecutive year of operating deficits, resulting in a breach of financial covenants and a 2.8 billion yen decrease in retained earnings. Total net assets fell to 10.37 billion yen, while cash equivalents dropped to 1.61 billion yen. In response to these challenges, the business narrowed its strategic focus to the core Game Business segment, effectively deconsolidating its blockchain-related operations through the partial sale of BLOCKSMITH&Co. Despite the fiscal strain, investment in software in progress increased by 1.4 billion yen to support three major global IP projects, including a title based on the My Hero Academia franchise. To address concerns regarding its status as a going concern, the company secured approximately 2.8 billion yen in funding through third-party allotments and unsecured bonds in early 2025. Management has implemented rigorous cost controls and personnel restructuring to mitigate ongoing losses. However, due to the complexity and scale of its lead development projects, no earnings forecast has been provided for the 2025 fiscal year. The company remains reliant on the successful launch of its upcoming pipeline to stabilize its long-term financial health and recover from its current liquidity constraints.