COLOPL 4Q FY September 2019 Financial Results

Key insights

6 takeaways

01
COLOPL achieved ¥11.3 billion in Q4 sales, a 42.5% increase over the previous quarter, driven primarily by the launch of Dragon Quest Walk.See it on page 4
02
Operating profit rebounded to ¥2.4 billion in Q4 from a break-even point in the third quarter, contributing to a full-year operating profit of ¥2.9 billion on ¥38.9 billion in total sales.See it on page 6
03
Quarterly Active Users (QAU) grew by 48.1% to reach 8 million, supported by anniversary events for White Cat Project and White Cat Tennis.See it on page 15
04
The company maintains a disciplined financial approach, keeping tight control over advertising and outsourcing costs while planning a ¥17 dividend for the fiscal year.See it on page 21
05
COLOPL’s 'mille-feuille' strategy focuses on balancing long-term legacy title operations with the release of three to four new applications annually.See it on page 12
06
Due to the unpredictability of new product performance, the company has declined to provide specific numerical earnings guidance for the upcoming period.See it on page 23

Summary

The financial results for the fourth quarter of the fiscal year ending September 2019 highlight a period of significant growth driven by the successful launch of Dragon Quest Walk. The company reported quarterly sales of ¥11.3 billion, representing a 42.5% increase compared to the previous quarter. This performance was bolstered by anniversary events for existing titles such as White Cat Project and White Cat Tennis, alongside the strategic release of new software. Operating profit for the quarter reached ¥2.4 billion, a substantial recovery from the break-even point recorded in the third quarter.

Key performance indicators reflect a strong rebound in user engagement, with Quarterly Active Users (QAU) rising by 48.1% to reach the 8 million-user level. The company maintained a disciplined approach to operational costs, exercising tight control over advertising and outsourcing expenses despite the high-activity period associated with new product launches. For the full fiscal year, total sales reached ¥38.9 billion with an operating profit of ¥2.9 billion. The company maintains a solid financial foundation, characterized by stable cash equivalents and a consistent dividend policy, with a ¥17 dividend planned for the fiscal year.

The business strategy focuses on a "mille-feuille" model, where revenue is generated by balancing the long-term operation of existing titles with the consecutive launch of new applications. Looking ahead, the company intends to release three to four new titles annually while continuing to leverage both original intellectual property and licensed content from external partners. Due to the inherent difficulty in forecasting the performance of new product launches, the company has opted not to provide specific numerical earnings guidance for the upcoming period, though it anticipates stable contributions from its core legacy titles.