Nippon Ichi Software: Q3 Quarterly Securities Report (2018)

Key insights

6 takeaways

01
Nippon Ichi Software reported a 621.5% year-over-year increase in net income to 430.9 million yen for the nine-month period ending December 31, 2017.See it on page 5
02
Net sales grew by 52.5% to 3.78 billion yen, while operating profit surged 142.0% to 552 million yen compared to the same period in the previous year.See it on page 12
03
Financial performance was primarily driven by successful indie title distribution, global Nintendo Switch software shipments, and ongoing mobile application development.See it on page 5
04
The company transitioned to a single-segment reporting structure to facilitate integrated business management rather than service-specific operations.See it on page 15
05
Total assets reached 4.42 billion yen by the end of the third quarter, supported by increases in cash, deposits, and investment securities.See it on page 10
06
Net assets grew to 3.06 billion yen, while liabilities saw a minor increase to 1.36 billion yen, maintaining a stable financial position.See it on page 11

Summary

This quarterly securities report outlines the financial performance and business operations of Nippon Ichi Software for the third quarter of the fiscal year ending March 31, 2018. The company maintains a focus on its core strategy of strengthening content development, technical capabilities, and human resources to operate as a robust entertainment provider. During this period, the company transitioned to a single-segment reporting structure, reflecting a strategic shift toward integrated business management rather than service-specific silos.

Financial results for the nine-month period ending December 31, 2017, demonstrate significant growth compared to the previous year. Net sales reached 3.78 billion yen, a 52.5% increase, while operating profit rose by 142.0% to 552 million yen. Ordinary profit and net income attributable to owners of the parent also saw substantial gains, with net income reaching 430.9 million yen, representing a 621.5% increase year-over-year. This performance was supported by the successful distribution of indie titles, the continued global shipment of Nintendo Switch software, and ongoing development of mobile applications.

The company’s financial position remains stable, with total assets increasing to 4.42 billion yen, driven largely by growth in cash, deposits, and investment securities. Liabilities rose slightly to 1.36 billion yen, while net assets grew to 3.06 billion yen. The report confirms that the company continues to pursue its "Entertainment for All" vision, leveraging both domestic and international market opportunities. The financial statements were reviewed by an independent auditor, who concluded that the results fairly represent the company's financial condition and performance for the specified period.