FinancialKLab
Summary of Financial Results for First Half of Fiscal Year Ending December 2014 (Consolidated)
1 Aug 201411 pages~14 min full read
KLab Inc. achieved a financial turnaround in H1 2014, reporting 9.58 billion yen in revenue and 541 million yen in net income, reversing a 597 million yen net loss from the same period in 2013.
See it on page 8The mobile game 'Love Live! School Idol Festival' served as the primary growth engine, achieving record monthly sales in Japan and a successful international launch.
See it on page 4The company improved its financial stability significantly, increasing its equity ratio from 45.5% to 66.5% and total assets to 9.25 billion yen.
See it on page 4Structural reforms and cost-cutting measures, including personnel reductions and the dissolution of the KLab America development team, contributed to the return to profitability.
See it on page 4KLab forecasts continued growth for the first three quarters of FY2014, projecting 15.58 billion yen in revenue and 1.03 billion yen in net income.
See it on page 1Management cautioned that full-year financial predictability remains low due to the inherent volatility of the mobile gaming market and a high dependency on hit titles.
See it on page 5KLab Inc. reported a significant financial turnaround for the first half of the fiscal year ending December 2014, covering the period from January 1 to June 30, 2014. Following a change in the fiscal year-end in 2013, the company transitioned from a net loss to profitability. Consolidated revenue reached 9.58 billion yen, a 34.6% increase compared to the first half of the previous year. Operating income was recorded at 696 million yen, and net income reached 541 million yen, representing a sharp recovery from the 597 million yen net loss reported in the same period of 2013.
The primary driver of this growth was the sustained success of the mobile game "Love Live! School Idol Festival," which achieved record monthly sales in Japan and saw a favorable international launch. Other titles, including "Celestial Craft Fleet" and "Tales of Asteria," also contributed steady revenue. Simultaneously, the company aggressively reduced fixed costs through structural reforms. These measures included a reduction in personnel expenses by 82.8 million yen following employee adjustments, the dissolution of the KLab America development team, and the reduction of office space at the corporate headquarters.
The company’s financial position strengthened during this period, with total assets rising to 9.25 billion yen and the equity ratio improving from 45.5% to 66.5%. This was bolstered by a significant increase in capital stock and surplus following the exercise of stock subscription rights by Deutsche Bank. Looking ahead to the first three quarters of FY2014, KLab forecasts continued growth with projected revenue of 15.58 billion yen and net income of 1.03 billion yen. However, management noted that full-year forecasts remain difficult to predict due to the volatile nature of the mobile gaming industry and the high dependency on hit products.
