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Nippon Ichi Software: Q2 Financial Results (Fiscal Year Ending March 2022)

Key insights

7 takeaways

01
Nippon Ichi Software reported strong growth for the first half of the fiscal year ending March 2022, with net sales reaching 3,601 million yen and operating profit rising to 1,288 million yen, compared to 2,094 million yen and 450 million yen respectively in the same period of the previous year.See it on page 10
02
Quarterly net profit increased significantly to 871 million yen, up from 251 million yen in the first half of the previous fiscal year.See it on page 10
03
The company launched two new IPs, 'Tantei Bokumetsu' and 'Warui Ousama to Rippana Yuusha,' alongside various sequels and ports including 'Fuuraiki 4' and 'Shin Hayarigami 3' to strengthen its consumer game business.See it on page 2
04
Global expansion efforts included the release of 'Disgaea 6: Defiance of Destiny' in North America, Europe, and Asia, and the launch of the English version of 'DISGAEA RPG' across global markets excluding China, South Korea, and select other regions.See it on page 2
05
The 'Game Variety' mobile service expanded its library to 29 titles by adding four new games, maintaining a business model free of additional charges and advertisements.See it on page 2
06
As of September 30, 2021, the company maintained a solid financial position with total assets of 7,293 million yen and total net assets of 5,476 million yen.See it on page 10
07
Future development plans for the second half of the fiscal year include the release of new IPs such as 'Kochira, Haha Naru Hoshi Yori,' 'Asatsugutori,' and 'Shikabane Kurai no Bouken Meshi,' alongside the port of 'Galleria no Chika Meikyuu to Majo no Ryodan.'See it on page 2

Summary

Nippon Ichi Software’s financial results for the second quarter of the fiscal year ending March 2022 demonstrate significant growth in both revenue and profitability. The company reported net sales of 3.6 billion yen and an ordinary profit of 1.29 billion yen for the six-month period ending September 30, 2021. This performance reflects a strong recovery compared to the previous fiscal year, driven by a robust release schedule and the expansion of its digital and global operations.

The company’s core consumer game segment focused on a mix of new intellectual properties, such as Tantei Bokumetsu and The Liar Princess and the Blind Prince, alongside sequels like Fuuraiki 4 and Shin Hayarigami 3. Additionally, the company leveraged its development and sales capabilities to release ported titles and distribute licensed games. Internationally, the launch of Disgaea 6: Defiance of Destiny across North America, Europe, and Asia served as a key contributor to the period's success.

In the online gaming sector, the company maintained operations for established titles like Makai Wars and Disgaea RPG, while expanding the latter’s reach through a global English-language release. The "Game Variety" service, which offers ad-free, subscription-free mobile experiences, also saw its library grow to 29 titles. These efforts align with the company’s overarching vision of "Entertainment for All," emphasizing the creation of high-quality, accessible content. By prioritizing development and sales efficiency, the company aims to continue delivering diverse entertainment products while maintaining its commitment to long-term corporate growth and social contribution.