COLOPL 4Q FY Sep. 2015 Operating Results

Key insights

7 takeaways

01
COLOPL posted record results for FY ended September 2015: sales of ¥72.4 billion (+35.1% YoY) and operating profit of ¥32.3 billion (+36.9% YoY), exceeding the company's internal guidance.See it on page 30
02
White Cat Project was the main growth driver, with monthly sales doubling in 4Q compared with the first half of the fiscal year.See it on page 5
03
Quarterly Active Users hit a record 8.37 million, and Average Revenue Per Quarterly User (ARPQU) also reached a record high, so growth came from both user scale and monetization.See it on page 17
04
COLOPL's 'mille-feuille' strategy layers new app releases on top of long-running existing titles to accumulate revenue; older titles like Quiz RPG appear to be stabilizing.See it on page 14
05
Cost discipline held: the full-year advertising-to-sales ratio was 10.1%, below the company's 11% commitment.See it on page 10
06
Headcount grew to 502 employees to support development, helped by the acquisition of Pyramid, Inc. and the launch of 360Channel, a new subsidiary targeting the virtual reality video market.See it on page 28
07
FY2016 guidance targets ¥85 billion in sales and ¥36 billion in operating profit, supported by a planned six new title releases and continued scaling of core franchises.See it on page 30

Summary

COLOPL’s operating results for the fourth quarter of the fiscal year ending September 2015 demonstrate significant financial growth, characterized by record-high quarterly sales and operating profits. The company reported annual sales of ¥72.4 billion and an operating profit of ¥32.3 billion, representing year-over-year increases of 35.1% and 36.9%, respectively. This performance exceeded the company’s internal guidance, driven primarily by the sustained success and renewed momentum of its flagship title, White Cat Project.

The company’s growth strategy relies on a "mille-feuille" model, where revenue is accumulated by layering new app releases over the long-term operation of existing titles. During this period, the company achieved a record Quarterly Active User (QAU) count of 8.37 million, alongside a record-high Average Revenue Per Quarterly User (ARPQU). While older titles like Quiz RPG showed signs of stabilizing, the robust performance of White Cat Project—which saw its monthly sales double in the fourth quarter compared to the first half of the fiscal year—served as the primary catalyst for the company’s financial expansion.

Operational costs remained disciplined, with the advertisement-to-sales ratio for the full fiscal year held at 10.1%, below the 11% commitment. The company also expanded its workforce to 502 employees to support development, bolstered by the acquisition of Pyramid, Inc. and the launch of 360Channel, a new subsidiary focused on the virtual reality video market. Looking ahead to the 2016 fiscal year, the company projects continued growth with a target of ¥85 billion in sales and ¥36 billion in operating profit, supported by a planned release of six new titles and a continued focus on scaling its core gaming franchises.