Nippon Ichi Software Financial Results: Fiscal Year Ending March 2018

Key insights

6 takeaways

01
Nippon Ichi Software experienced significant growth in the fiscal year ending March 2018, with net sales rising 38.9% to 4.737 billion yen and operating profit increasing 79.5% to 658 million yen.See it on page 1
02
Net income attributable to owners of the parent surged 273.8% to 508 million yen, supported by the release of seven domestic titles and strong global sales of the Disgaea 5 series on Nintendo Switch, which exceeded 200,000 cumulative units.See it on page 4
03
The company projects a performance decline for the fiscal year ending March 2019, forecasting net sales of 4.565 billion yen and net income of 175 million yen as it prioritizes long-term IP investment and talent acquisition.See it on page 6
04
Operating cash flow improved significantly to 679 million yen, reversing the negative cash flow reported in the previous fiscal year.See it on page 5
05
Strategic initiatives included the launch of the smartphone game Makai Wars in February 2018 and the expansion of the 'Nippon Ichi Indie Spirits' label to localize and distribute overseas indie titles.See it on page 4
06
The company transitioned to a single-segment reporting structure to better reflect its integrated development and management approach.See it on page 17

Summary

Nippon Ichi Software’s financial results for the fiscal year ending March 31, 2018, reflect a period of significant growth driven by strong performance in both domestic and international gaming markets. The company reported consolidated net sales of 4.737 billion yen, representing a 38.9% increase over the previous fiscal year. Operating profit rose by 79.5% to 658 million yen, while net income attributable to owners of the parent surged by 273.8% to 508 million yen. This financial improvement is attributed to a robust release schedule of seven domestic titles and the successful global distribution of Nintendo Switch software, notably the Disgaea 5 series, which surpassed 200,000 units in cumulative global shipments.

The company’s strategic focus during this period centered on strengthening its position as a versatile content creator. Key initiatives included the expansion of its "Nippon Ichi Indie Spirits" label to localize and distribute overseas indie titles, the launch of the smartphone game Makai Wars in February 2018, and continued investment in intellectual property development. Reflecting these operational shifts, the company transitioned to a single-segment reporting structure, moving away from its previous classification of business segments to better align with its integrated development and management approach.

Financially, the company maintained a stable position with total assets reaching 4.57 billion yen and an equity ratio of 64.7%. Cash flow from operating activities improved significantly to 679 million yen, compared to a negative cash flow in the prior year. Looking ahead, the company anticipates a decline in performance for the fiscal year ending March 2019, projecting net sales of 4.565 billion yen and a net income of 175 million yen, as it continues to prioritize long-term investment in new intellectual property and talent acquisition.