Summary of Financial Results: First Half 2017

KLab Inc. reported a strong first‑half fiscal 2017 performance, with consolidated revenue rising 23 % to ¥10.92 billion compared to ¥8.88 billion in the same period of FY2016. Operating income increased markedly to ¥1.97 billion, up from a loss of ¥51 million the previous year, driven by robust sales of core mobile games and the launch of “Captain Tsubasa ～Tatakae Dream Team～” in mid‑June. Cost of sales grew modestly by 3.9 % to ¥7.02 billion, largely reflecting higher royalty and commission expenses linked to revenue growth. Selling, general and administrative costs fell 6.6 % to ¥1.93 billion due to reduced advertising and outsourcing spend, while non‑operating income of ¥217 million—primarily foreign‑exchange gains—offsets a non‑operating expense of ¥647 million, resulting in ordinary profit of ¥2.19 billion and net income attributable to owners of parent of ¥1.45 billion.

Total assets reached ¥14.53 billion, up ¥2.40 billion from FY2016, with net assets increasing to ¥10.68 billion and an equity ratio of 73.3 %. The company maintained a healthy liquidity position, with current assets at ¥9.10 billion and current liabilities at ¥3.85 billion, while retained earnings grew by ¥1.54 billion.

KLab revised its FY2017 forecasts upward, projecting revenue of ¥22.5–25.5 billion, operating income of ¥2.20–4.00 billion, ordinary profit of ¥2.40–4.20 billion, and net income attributable to owners of parent between ¥1.60–2.80 billion, reflecting favorable market trends and recent game releases.

During the period, KLab acquired ABASEA Inc., making it a 100 % subsidiary and adding Spicemart Inc. as a sub‑subsidiary, with the acquisition cost recorded at ¥1 billion cash. This strategic move aims to enhance data‑analysis capabilities for mobile game operations and expand cross‑border market presence.