Nippon Ichi Software Q1 2016 Quarterly Report

Key insights

6 takeaways

01
Nippon Ichi Software achieved a significant financial turnaround in Q1 2016, reporting an operating profit of 158,578 thousand yen compared to an operating loss of 71,190 thousand yen in the same period of 2015.See it on page 1
02
Total revenue for the quarter reached 1,149,342 thousand yen, marking a 150.7% increase over the first quarter of the previous fiscal year.See it on page 10
03
The Package segment served as the primary revenue driver, generating 816,159 thousand yen through the release of six titles across domestic and international markets.See it on page 3
04
The Online segment contributed 281,680 thousand yen to the company's total revenue through digital distribution and content sales.See it on page 3
05
Net loss attributable to owners of the parent was reduced to 8,702 thousand yen, a substantial improvement from the 62,861 thousand yen loss reported in Q1 2015.See it on page 14
06
As of June 30, 2016, the company maintained a stable financial position with total assets valued at 3,731,721 thousand yen.See it on page 9

Summary

Nippon Ichi Software’s Q1 2016 quarterly report outlines the company’s financial performance for the period spanning April 1, 2016, to June 30, 2016. The primary objective of the report is to disclose the firm’s consolidated financial results, segment performance, and operational status to stakeholders in accordance with the Financial Instruments and Exchange Act. The company demonstrates a significant recovery in profitability compared to the same period in the previous fiscal year, transitioning from an operating loss to a solid operating profit.

Key financial indicators show a substantial increase in revenue, which reached 1,149,342 thousand yen, representing a 150.7% increase over the previous year's first quarter. The company reported an operating profit of 158,578 thousand yen and a recurring profit of 136,615 thousand yen, a marked improvement from the respective losses of 71,190 thousand yen and 53,500 thousand yen recorded in the prior year. Despite these gains, the company reported a minor net loss attributable to owners of the parent of 8,702 thousand yen, though this is a significant reduction from the 62,861 thousand yen loss in the same period of 2015.

The company’s operations are divided into four segments: Package, Online, License, and Other. The Package segment was the primary revenue driver, contributing 816,159 thousand yen through the release of six titles across domestic and international markets. The Online segment generated 281,680 thousand yen through digital distribution and content sales, while the License and Other segments provided smaller, stable contributions. The financial data was prepared in accordance with Japanese accounting standards and underwent a quarterly review by an independent audit firm. The report concludes that the company maintains a stable financial position with total assets of 3,731,721 thousand yen as of June 30, 2016.