Nippon Ichi Software Q3 Financial Report: 21st Term

Key insights

6 takeaways

01
Nippon Ichi Software achieved a consolidated net profit of 398.7 million yen for the first nine months of the 21st fiscal term, reversing a 124.4 million yen loss from the same period the previous year.See it on page 1
02
Total sales reached 2.77 billion yen, marking a 99.1% year-over-year increase driven by strong performance in core business segments.See it on page 3
03
The package software segment generated 2.06 billion yen in revenue through the release of 12 titles, including key games such as 'The Witch and the Hundred Knight' and 'Disgaea D2'.See it on page 3
04
The online segment contributed 491.8 million yen in sales through social games and mobile applications distributed on platforms including GREE, Mobage, and the PlayStation Network.See it on page 4
05
The company increased its total net asset value to 2.02 billion yen by the end of the third quarter, bolstered by capital raised through public stock offerings and third-party allotments.See it on page 5
06
Despite industry transitions involving new hardware like the PlayStation 4 and competition in mobile gaming, the company maintained its existing business strategies and risk profile.See it on page 3

Summary

Nippon Ichi Software’s financial report for the third quarter of the 21st fiscal term (covering April 1, 2013, to December 31, 2013) details a significant turnaround in financial performance compared to the previous year. The company achieved a consolidated net profit of 398.7 million yen, a stark improvement from the 124.4 million yen net loss reported in the same period of the prior year. Total sales reached 2.77 billion yen, representing a 99.1% increase year-over-year, driven by robust activity across its core business segments.

The company’s primary revenue driver, the package software segment, generated 2.06 billion yen in sales by releasing 12 titles across domestic and international markets, including key titles such as The Witch and the Hundred Knight and Disgaea D2. The online segment also contributed significantly, reporting 491.8 million yen in sales through the distribution of social games and mobile applications on platforms like GREE, Mobage, and PlayStation Network. Additionally, the company strengthened its financial position through public stock offerings and third-party allotments, which increased capital and capital reserves, resulting in a total net asset value of 2.02 billion yen by the end of the quarter.

Operating in a challenging global market, the company navigated a period of industry transition characterized by the launch of new hardware, such as the PlayStation 4, and intense competition within the mobile social gaming sector. Despite these pressures, the company maintained a stable operational structure, with no significant changes to its business risks or core strategies. The financial statements were reviewed by Azusa & Co. (KPMG AZSA LLC), confirming that the results fairly represent the company’s financial position and performance for the reported period.