COLOPL Consolidated Financial Results for the Nine Months Ended June 30, 2022

COLOPL, Inc. reported its consolidated financial results for the nine-month period ending June 30, 2022, reflecting a challenging fiscal environment characterized by decreased net sales and operating profits compared to the same period in the previous year. The company recorded net sales of 23,079 million yen, a 15.8% decline, and an operating profit of 2,948 million yen, representing a 43.9% decrease. Despite these declines in core operational metrics, profit attributable to owners of the parent rose by 8.7% to 2,774 million yen.

The company operates through two primary segments: the Entertainment Business and the Investment and Development Business. The Entertainment segment, which remains the primary revenue driver, generated 22,748 million yen in sales and 2,869 million yen in operating profit. Performance in this segment was supported by ongoing operations for titles such as Dragon Quest Walk and Shironeko Project. The Investment and Development Business contributed 331 million yen in sales and 76 million yen in operating profit.

Financial results for this period were significantly influenced by the adoption of new accounting standards, specifically the Accounting Standard for Revenue Recognition. This transition altered how the company recognizes revenue from smartphone game user charges and software development contracts, resulting in a 1,246 million yen increase in net sales and a 385 million yen increase in operating profit for the third quarter. Additionally, the company expanded its scope of consolidation to include the newly formed COLOPL NEXT No. 8 Fund Investment Partnership.

Due to the volatility of the current business environment, the company has declined to provide specific financial forecasts for the fiscal year ending September 30, 2022. The firm maintains a strong financial position with total assets of 82,322 million yen and an equity ratio of 93.0%.