FinancialKLab
Summary of Financial Results for Second Quarter (First Half) of Fiscal Year Ended December 31, 2024
1 Aug 20249 pages~16 min full read
KLab Inc. reported a significant financial downturn for the first half of 2024, with revenue falling 32.4% year-over-year to 3,629 million yen.
See it on page 6The company recorded an operating loss of 1,024 million yen and a net loss attributable to owners of the parent of 1,341 million yen, resulting in a net loss per share of 32.47 yen.
See it on page 5Management has declined to provide a consolidated performance forecast for the remainder of the fiscal year, citing volatility in the mobile gaming market.
See it on page 2To address three consecutive years of operating deficits and negative cash flows, the company is implementing cost-reduction measures, including cuts to outsourcing and personnel expenses, alongside the sale of investment securities.
See it on page 9Structural changes include shifting the blockchain-related business to the equity method following the partial sale of BLOCKSMITH&Co. shares.
See it on page 9The company bolstered its capital position through the issuance of new stock acquisition rights and unsecured bonds via third-party allotment.
See it on page 7Recovery efforts are centered on the development of high-profile mobile titles, including EA SPORTS FC™ TACTICAL and a My Hero Academia project, alongside a strategic pivot toward hybrid casual games.
See it on page 9KLab Inc. reported a significant downturn in financial performance for the first half of the fiscal year ending December 31, 2024. Revenue fell to 3,629 million yen, a 32.4% decrease compared to the same period in 2023. This decline contributed to an operating loss of 1,024 million yen and a total loss attributable to owners of the parent of 1,341 million yen. Consequently, the company reported a net loss per share of 32.47 yen and maintained a policy of no dividend payments.
The financial status shows total assets of 18,652 million yen and an equity ratio of 60.2%. During this period, the company underwent structural changes, notably excluding BLOCKSMITH&Co. and its subsidiary from consolidation after selling a portion of its shares, shifting the blockchain-related business to the equity method. To bolster its capital, the company issued new stock acquisition rights and unsecured bonds through third-party allotment, resulting in an increase in capital stock and capital surplus.
Despite three consecutive years of operating deficits and negative cash flows, management maintains that there is no material uncertainty regarding the company’s ability to continue as a going concern. The recovery strategy focuses on the development of high-profile mobile titles, such as EA SPORTS FC™ TACTICAL and a project based on My Hero Academia, alongside a shift toward hybrid casual games. Cost-reduction measures, including the review of outsourcing and personnel expenses, are being implemented in tandem with the sale of investment securities to ensure liquidity. Due to the volatility of the mobile gaming market, the company has declined to provide a consolidated performance forecast for the remainder of the fiscal year.
