COLOPL Notice of Partial Correction to Consolidated Financial Results for the Nine Months Ended June 30, 2024

Key insights

6 takeaways

01
COLOPL reported a consolidated net loss attributable to owners of 435 million yen for the nine months ended June 30, 2024, a sharp decline from the 1,244 million yen profit recorded in the same period last year.See it on page 2
02
Consolidated net sales fell 18.6% year-over-year to 18,307 million yen, resulting in an operating loss of 695 million yen compared to a 1,980 million yen operating profit in the prior year.See it on page 8
03
The Entertainment Business segment, which includes smartphone game operations, generated 17,892 million yen in sales but recorded an operating loss of 528 million yen due to declining revenue from existing titles and upfront costs for the new blockchain game, Brilliantcrypto.See it on page 5
04
The Investment and Development Business segment reported net sales of 414 million yen and an operating loss of 168 million yen.See it on page 11
05
COLOPL issued a formal notice on November 20, 2024, to correct numerical data in its previously disclosed financial results for the nine-month period ending June 30, 2024.See it on page 1
06
Due to high business volatility, COLOPL has declined to provide consolidated earnings forecasts for the fiscal year ending September 30, 2024.See it on page 2

Summary

COLOPL, Inc. issued a formal notice on November 20, 2024, to announce partial corrections to its previously disclosed consolidated financial results for the nine-month period ending June 30, 2024. These corrections, which involve adjustments to numerical data, were necessitated by findings detailed in a concurrent report regarding the submission of correction reports for past annual securities filings and financial statements.

The financial performance for the nine months ended June 30, 2024, reflects a challenging period for the company. Consolidated net sales reached 18,307 million yen, representing an 18.6% decline compared to the same period in the previous fiscal year. The company reported an operating loss of 695 million yen, a significant downturn from the 1,980 million yen operating profit recorded in the prior year. Additionally, the company incurred a loss attributable to owners of the parent of 435 million yen, compared to a profit of 1,244 million yen in the previous year.

The Entertainment Business, which focuses on smartphone game development and operations, saw net sales of 17,892 million yen and an operating loss of 528 million yen. While titles such as Dragon Quest Walk continued to influence performance, overall sales from existing titles declined, and the company incurred upfront costs related to the launch of its new blockchain game, Brilliantcrypto. The Investment and Development Business reported net sales of 414 million yen and an operating loss of 168 million yen. Due to the high volatility of the current business environment, the company has refrained from providing specific consolidated earnings forecasts for the fiscal year ending September 30, 2024.