COLOPL Consolidated Financial Results for the Three Months Ended December 31, 2021

COLOPL, Inc. reported its consolidated financial results for the first quarter of the fiscal year ending September 30, 2022, covering the period from October 1, 2021, to December 31, 2021. The company operates primarily within the Japanese entertainment sector, focusing on smartphone game development and investment activities. During this period, the company implemented new accounting standards for revenue recognition and fair value measurement, which influenced the reported figures.

Financial performance for the quarter showed a decline compared to the same period in the previous year. Net sales reached 7,406 million yen, a 14.1% decrease, while operating profit fell by 44.8% to 758 million yen. Ordinary profit and profit attributable to owners of the parent also saw significant year-on-year declines of 37.3% and 45.8%, respectively. The Entertainment business, driven by titles such as Dragon Quest Walk and various original IP collaborations, generated 7,395 million yen in sales and 798 million yen in operating profit. Conversely, the Investment and Development business recorded 11 million yen in sales and an operating loss of 39 million yen.

The application of the new Accounting Standard for Revenue Recognition resulted in a positive adjustment to the current quarter, increasing net sales by 569 million yen and operating profit by 137 million yen. Despite these adjustments, the company maintains a strong financial position with total assets of 79,129 million yen and an equity ratio of 93.2%. Due to the volatility of the current business environment, the company has opted not to disclose specific consolidated financial forecasts for the remainder of the fiscal year, citing the difficulty in providing reasonable estimates.