Nippon Ichi Software: Q2 Financial Report, 2021

Nippon Ichi Software’s financial report for the second quarter of the fiscal year ending March 31, 2022, details a period of significant growth driven by strong performance in the domestic and international gaming markets. The company’s primary objective remains the expansion of its development and sales capabilities, alongside productivity improvements, to deliver entertainment content across diverse demographics. The report covers the consolidated results for the six-month period from April 1, 2021, to September 30, 2021.

Financial results for the second quarter show substantial year-over-year increases across all key metrics. Net sales reached 3.6 billion yen, representing a 71.9% increase compared to the same period in the previous year. Operating profit surged by 185.8% to approximately 1.29 billion yen, while ordinary profit rose by 195.5% to 1.29 billion yen. Net income attributable to owners of the parent company grew by 247.2% to 871.7 million yen. This growth was supported by the release of five console titles, including Tantei Bokumetsu and The Cruel King and the Great Hero, as well as the distribution of five smartphone applications and the localization of various titles for overseas markets.

The company maintains a solid financial position, with total assets increasing to approximately 7.29 billion yen by the end of the second quarter, largely due to an increase in cash and deposits. Operating activities generated 1.07 billion yen in cash, reflecting robust profitability. The report notes the adoption of new accounting standards for revenue recognition starting from the first quarter, though this transition did not materially impact the reported profit or loss for the period. The financial statements were subject to a quarterly review by Tokai Audit Corporation, which concluded that the results fairly represent the company’s financial condition.