Nippon Ichi Software Q3 FY2018 Financial Results

Nippon Ichi Software’s financial results for the third quarter of the fiscal year ending March 31, 2018, demonstrate significant growth across all primary profit metrics compared to the same period in the previous year. Covering the nine-month period from April 1, 2017, to December 31, 2017, the company reported net sales of 3.775 billion yen, representing a 52.5% increase year-over-year. Operating profit rose by 142.0% to 552 million yen, while ordinary profit reached 597 million yen, a 140.4% increase. Net income attributable to owners of the parent surged by 621.5% to 430 million yen.

The company attributes this performance to a robust entertainment market, specifically noting strong hardware sales for the Nintendo Switch and PlayStation 4. Strategic initiatives during this period included the release of several titles under the "Nippon Ichi Indie Spirits" label, such as Nidhogg 2 and The Sexy Brutale, as well as the continued success of Disgaea 5 on the Nintendo Switch, which surpassed 200,000 units in global shipments by January 2018. Additionally, the company initiated pre-registration for the smartphone application Makai Wars in December 2017.

Financially, the company remains in a stable position with total assets of 4.420 billion yen and an equity ratio of 68.0%. As of the first quarter of the current fiscal year, the company transitioned to a single-segment reporting structure, reflecting a strategic shift toward managing its operations as an integrated content creator rather than by specific distribution or service channels. Despite the strong performance in the first three quarters, the company maintained its initial full-year earnings forecast, citing inherent uncertainties regarding fourth-quarter sales trends.