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Nippon Ichi Software: Second Quarter Business Report (FY2018)

Key insights

6 takeaways

01
Nippon Ichi Software reported strong first-half financial growth for FY2018, achieving 2.96 billion yen in net sales, 480 million yen in operating profit, and 359 million yen in net profit.See it on page 11
02
The company’s financial performance was driven by the domestic success of Disgaea 5 on the Nintendo Switch and robust sales across North American and European markets.See it on page 4
03
Strategic growth is centered on a 'scale-up' model where new intellectual property is developed on a small scale before being expanded for broader global distribution.See it on page 4
04
The company successfully diversified its portfolio during this period by launching new titles like Exile Election and Hakoniwa Company Works alongside sequels such as Yomawari: Midnight Shadows.See it on page 4
05
As of September 30, 2017, the company maintains a stable financial foundation with total assets of 4.69 billion yen and a consolidated workforce of 180 employees.See it on page 11
06
Ahead of its 25th anniversary in July 2018, the company is prioritizing direct audience engagement, evidenced by its 'National Entertainment Festival' in Gifu which drew 25,000 attendees.See it on page 7

Summary

Nippon Ichi Software’s second-quarter business report for the 2018 fiscal year outlines the company’s strategic focus on content creation, global expansion, and the pursuit of its core corporate philosophy. The company emphasizes a commitment to producing high-quality entertainment products that prioritize user satisfaction, operating under the guiding principle of questioning the inherent "fun" of every project. This approach is supported by a strategy of developing intellectual property on a smaller scale before scaling successful titles for broader global distribution.

Financial performance for the first half of the fiscal year shows significant growth compared to the previous period. Net sales reached approximately 2.96 billion yen, with operating profit rising to 480 million yen and net profit reaching 359 million yen. Key contributors to these results included the domestic performance of Disgaea 5 on the Nintendo Switch, alongside strong sales in North American and European markets. The company also successfully launched new titles such as Exile Election and Hakoniwa Company Works, while continuing to leverage its brand through sequels like Yomawari: Midnight Shadows and various localized indie titles.

The report highlights the company’s ongoing efforts to engage directly with its audience ahead of its 25th anniversary in July 2018. Initiatives include nationwide events, such as the inaugural "National Entertainment Festival" held in Gifu, which attracted approximately 25,000 attendees. Additionally, the company continues to expand its reach through collaborations and the strategic licensing of its intellectual property. As of September 30, 2017, the company maintains a stable financial position with total assets of 4.69 billion yen and a workforce of 180 employees across its consolidated group. Shareholder feedback indicates a primary interest in the company’s future growth potential and product portfolio.