COLOPL FY Sep.2024 1Q Financial Results

Key insights

6 takeaways

01
COLOPL reported a 20.8% year-over-year revenue decline to 5.6 billion yen and an operating loss of 0.4 billion yen for the first quarter of fiscal year 2024.See it on page 1
02
The financial downturn was primarily driven by the absence of new title releases and the impact of previously announced title closures within the Entertainment Business.See it on page 10
03
The Entertainment Business generated 5.5 billion yen in sales, supported by ongoing engagement for established titles like 'Shironeko Project' and 'DRAGON QUEST WALK'.See it on page 6
04
Despite the quarterly operating loss, the company maintains a strong financial foundation with an equity ratio of 93.8%.See it on page 8
05
The company is prioritizing its blockchain strategy with 'Brilliantcrypto,' which completed a closed beta test and is scheduled for a PC pre-release this spring.See it on page 24
06
Future growth initiatives include 10th-anniversary celebrations for 'Shironeko Project' and 15th-anniversary activities for 'STEINS;GATE' alongside continued investment in XR and metaverse sectors.See it on page 21

Summary

COLOPL's first-quarter results for the fiscal year ending September 2024 (October–December 2023) show a revenue and profit decline. Consolidated sales fell 20.8% year over year to 5.6 billion yen, and operating profit swung from a gain to a loss of 0.4 billion yen. The drop reflects the absence of a new release, the effect of announced title closures, and a reactionary decline from a title launched in the prior-year quarter. The equity ratio remained strong at 93.8%, though cash and deposits fell after dividend payments.

The Entertainment Business generated 5.6 billion yen in sales (down from 7.1 billion) and an operating loss of 345 million yen, versus a 233 million yen profit a year earlier, with margin moving from 3.3% to -6.2%. Prior expenses for the blockchain game business added to the pressure. Collaborations with popular IPs, notably Jujutsu Kaisen in Shironeko Project and a Dragon Quest Monsters anniversary event in Dragon Quest Walk, supported returning users. The Investment and Development Business posted just 32 million yen in sales and a 70 million yen operating loss, narrowed from 222 million yen as impairment losses declined. Operational investment securities stood at 9.3 billion yen, and the Korean subsidiary Colopl Next Korea has identified a new investment project.

Strategy centers on the blockchain title Brilliantcrypto, which completed a closed beta drawing applicants from over 100 countries and a record number of players. The company signed a partnership with Web3 platform Galxe and a token listing agreement with Spanish-speaking exchange Bit2Me, targeting Latin America. A PC pre-release is planned for spring 2024, with preparations for a Japanese IEO underway. The pipeline includes one blockchain game, four smartphone titles, and ten console titles.

Other priorities include the 10th anniversary of Shironeko Project in July 2024, 15th anniversary STEINS;GATE products launching April 11, and B-to-B expansion of WEBmetaverse through an exclusive Japan distribution deal with Pixel Canvas. Governance was strengthened with two new outside directors, including the company's first female director.