COLOPL Consolidated Financial Results for the Six Months Ended March 31, 2022

Key insights

6 takeaways

01
COLOPL experienced a significant downturn in the six months ending March 31, 2022, with net sales falling 18.9% year-on-year to 15,665 million yen.See it on page 1
02
Profitability contracted sharply, as operating profit dropped 47.6% to 2,169 million yen and profit attributable to owners of the parent fell 55.0% to 1,803 million yen.See it on page 7
03
Due to high business volatility, the company has declined to provide specific earnings forecasts for the remainder of the fiscal year ending September 30, 2022.See it on page 1
04
The company maintains a robust balance sheet with an equity ratio of 92.2% and 49,221 million yen in cash and cash equivalents.See it on page 6
05
The Entertainment Business remains the primary revenue driver, supported by titles such as Dragon Quest Walk, despite overall segment performance declining compared to the previous year.See it on page 4
06
The adoption of new accounting standards for revenue recognition and fair value measurement positively impacted results, contributing an additional 800 million yen in net sales and 252 million yen in operating profit.See it on page 10

Summary

The consolidated financial results for the six months ended March 31, 2022, reflect a period of contraction for the company compared to the same period in the previous fiscal year. The primary objective of this disclosure is to provide transparency regarding the company’s financial performance and position under Japanese GAAP, incorporating the mandatory application of new accounting standards for revenue recognition and fair value measurement. Due to the inherent volatility of the current business environment, the company has declined to provide specific earnings forecasts for the remainder of the fiscal year ending September 30, 2022.

Financial performance metrics show a decline across all major categories. Net sales for the six-month period reached 15,665 million yen, representing an 18.9% decrease year-on-year. Operating profit fell by 47.6% to 2,169 million yen, while profit attributable to owners of the parent decreased by 55.0% to 1,803 million yen. The Entertainment Business, which remains the core revenue driver, saw performance supported by titles such as Dragon Quest Walk, though overall segment results were lower than the prior year. Conversely, the Investment and Development Business recorded 318 million yen in net sales and 195 million yen in operating profit.

The company maintains a strong financial position with total assets of 81,540 million yen and an equity ratio of 92.2%. Cash and cash equivalents stood at 49,221 million yen at the end of the period. The adoption of new accounting standards for revenue recognition resulted in a 800 million yen increase in net sales and a 252 million yen increase in operating profit for the period, reflecting a shift in how the company estimates the usage period of in-game items and recognizes revenue from software development contracts.