COLOPL FY Sep.2022 4Q Financial Results

Key insights

6 takeaways

01
COLOPL reported a decline in full-year fiscal 2022 performance, with net sales falling 12.3% to 32.5 billion yen and operating profit dropping 31.8% to 4.3 billion yen due to a lack of new hit titles.See it on page 7
02
Q4 results showed a recovery trend with operating profit rising 27.8% year-over-year to 1.3 billion yen, driven by cost-reduction efforts and anniversary events for established titles like Shironeko Project and DRAGON QUEST WALK.See it on page 5
03
The company is aggressively diversifying its portfolio for fiscal 2023, with a development pipeline consisting of seven new smartphone games and nine console titles focused on the adventure genre.See it on page 22
04
The Investment and Development Business segment grew 322.9% to 0.7 billion yen, supported by successful portfolio exits and an expansion of operational investment securities to over 10 billion yen.See it on page 19
05
COLOPL is expanding into emerging tech through the development of a BtoB web metaverse via 360Channel and the launch of Brilliantcrypto to build sustainable blockchain-based 'Play to Earn' models.See it on page 22
06
The company maintains a strong financial foundation with an equity ratio of 91.9% and has committed to a stable dividend policy of 20 yen per share.See it on page 10

Summary

COLOPL’s financial results for the fiscal year ending September 30, 2022, reflect a period of transition characterized by a decline in annual performance alongside strategic investments in new business segments. For the full fiscal year, the company reported net sales of 32.5 billion yen, a 12.3% decrease year-over-year, and an operating profit of 4.3 billion yen, down 31.8%. This downturn was primarily attributed to a lack of significant contributions from new entertainment titles. Despite these annual results, the fourth quarter showed resilience, with net sales of 9.4 billion yen and an operating profit of 1.3 billion yen, the latter representing a 27.8% increase compared to the same period in the previous year, driven largely by cost-reduction measures and successful anniversary events for established titles.

The Entertainment Business remains the company’s core, generating 31.8 billion yen in annual sales. Key titles such as Shironeko Project and DRAGON QUEST WALK provided stability through anniversary events and collaborations, including a notable partnership with the anime series SPY x FAMILY. Simultaneously, the Investment and Development Business demonstrated growth, with sales reaching 0.7 billion yen—a 322.9% increase—supported by exits from portfolio companies and the expansion of operational investment securities, which surpassed 10 billion yen.

Looking toward fiscal year 2023, the company is pivoting toward a strategy of diversifying its entertainment offerings and securing stable earnings. This includes a robust pipeline of seven new smartphone games and nine console titles, with a specific focus on adventure games. Furthermore, the company is aggressively expanding into emerging technologies, including the development of a BtoB-focused web metaverse through its subsidiary 360Channel and the establishment of Brilliantcrypto, a new entity dedicated to creating sustainable blockchain-based "Play to Earn" gaming models. The company maintains a strong financial position with an equity ratio of 91.9% and plans to continue its policy of stable dividend payments at 20 yen per share.