Nippon Ichi Software Q3 Financial Results: Fiscal Year Ending March 2021

Key insights

5 takeaways

01
Nippon Ichi Software reported significant Q3 year-over-year growth, with net sales rising 50.1% to 3.457 billion yen and operating profit surging 227.9% to 782 million yen.See it on page 1
02
Net income attributable to owners of the parent company increased by 207.6% to 498 million yen for the period ending December 31, 2020.See it on page 9
03
The company maintained a strong financial position with an equity ratio of 68.9% and total assets growing to 5.691 billion yen, primarily driven by increased cash and deposits.See it on page 5
04
Despite COVID-19-related production and shipping delays, the company capitalized on increased home-based gaming demand through titles such as Princess Guide, Mad Rat Dead, and Labyrinth of Refrain: Coven of Dusk.See it on page 4
05
Full-year forecasts for the fiscal year ending March 2021 project net sales of 5 billion yen and an operating profit of 939 million yen.See it on page 5

Summary

Nippon Ichi Software’s financial results for the third quarter of the fiscal year ending March 2021 demonstrate significant growth in profitability and revenue compared to the same period in the previous year. The company, which operates primarily in the computer software development and sales industry, reported net sales of 3.457 billion yen, representing a 50.1% increase year-over-year. Operating profit surged to 782 million yen, a 227.9% increase, while ordinary profit reached 751 million yen, up 171.5%. Net income attributable to owners of the parent company rose by 207.6% to 498 million yen.

The reporting period covers April 1, 2020, through December 31, 2020. During this time, the company navigated a challenging economic environment characterized by COVID-19-related restrictions. While these conditions caused delays in the production and shipment of hardware and software, the company benefited from increased home-based gaming demand. Key titles released during this period included Princess Guide, Mad Rat Dead, and Labyrinth of Refrain: Coven of Dusk, alongside ongoing digital sales and the operation of the "Nippon1.jp" shop.

The company’s financial position remains stable, with total assets increasing to 5.691 billion yen by the end of the third quarter, up from 5.004 billion yen at the end of the previous fiscal year. This growth was driven largely by an increase in cash and deposits. Net assets also saw an improvement, rising to 4.095 billion yen, supported by an increase in retained earnings. The company maintains a strong equity ratio of 68.9%. Looking ahead, the company has provided a full-year forecast anticipating net sales of 5 billion yen and an operating profit of 939 million yen, reflecting a positive outlook despite the ongoing uncertainty in the broader economic landscape.