FinancialKLab
Summary of Financial Results for First Half of Fiscal Year Ending December 31, 2018
8 Aug 201811 pages~16 min full read
KLab Inc. reported 15.98 billion yen in revenue for H1 2018, representing a 46.3% increase year-over-year driven primarily by the mobile title Captain Tsubasa: Dream Team.
See it on page 8Operating income grew 31.7% to 2.59 billion yen, while profit attributable to owners of the parent rose 17.8% to 1.71 billion yen.
See it on page 2The company projects full-year 2018 revenue between 30.0 billion and 33.0 billion yen, though it anticipates a potential decline in annual operating income, forecasted between 2.75 billion and 4.25 billion yen.
See it on page 2Operating costs rose significantly, with cost of sales increasing 51.3% to 10.62 billion yen due to higher royalties and platform commissions, alongside a 43.2% increase in SG&A expenses.
See it on page 4KLab maintained a strong balance sheet with an equity ratio of 72.7% as of June 30, 2018, up from 67.4% at the end of 2017.
See it on page 6Total assets reached 18.93 billion yen, with growth in non-current assets attributed to ongoing software development.
See it on page 4KLab Inc. reported significant growth in its consolidated financial results for the first half of the fiscal year ending December 31, 2018, covering the period from January 1 to June 30, 2018. Revenue reached 15.98 billion yen, a 46.3% increase over the same period in 2017. This growth was primarily driven by the strong performance of the mobile title Captain Tsubasa: Dream Team, which launched in Japan in mid-2017. Operating income rose 31.7% to 2.59 billion yen, while profit attributable to owners of the parent increased 17.8% to 1.71 billion yen.
The expansion in revenue was accompanied by a 51.3% rise in cost of sales, totaling 10.62 billion yen, largely due to higher platform commissions and royalties. Selling, general, and administrative expenses also grew by 43.2% to 2.76 billion yen, fueled by increased advertising spend. Despite these costs, the company maintained a strong financial position with an equity ratio of 72.7%, up from 67.4% at the end of 2017. Total assets stood at 18.93 billion yen, with a notable increase in non-current assets driven by software in progress.
The geographic focus remains primarily on the Japanese market, though the company operates globally within the mobile gaming segment. Looking ahead, KLab provided a range-based forecast for the full fiscal year 2018, projecting revenue between 30.0 billion and 33.0 billion yen. While revenue is expected to grow year-over-year, the company anticipates a potential decline in annual operating income, forecasted between 2.75 billion and 4.25 billion yen, citing the inherent volatility and impact of new game title success on financial performance. Methodology for these results follows Japanese GAAP, with specific updates to accounting policies regarding stock acquisition rights and tax expense calculations.
