Summary of Financial Results for Fiscal Year Ended December 31, 2023

The fiscal year ended December 31, 2023, marked a period of significant financial contraction and strategic transition for the organization. Consolidated revenue fell 36.5% year-over-year to ¥10.7 billion, primarily driven by a sharp decline in income from paid users within the core game business. This downturn, exacerbated by the weakening performance of established titles such as Captain Tsubasa: Dream Team, resulted in an operating loss of ¥1.1 billion and a net loss attributable to owners of the parent of ¥1.73 billion. An extraordinary impairment loss of approximately ¥841 million on software assets further pressured the bottom line, leading to a net loss per share of 42.74 yen.

Liquidity and asset management reflected heavy reinvestment despite the operational downturn. Cash and equivalents decreased by ¥3.8 billion to end the year at ¥2.21 billion, a result of negative operating cash flow and substantial capital expenditures. Specifically, investment in intangible fixed assets reached ¥2.82 billion, with "software in progress" rising to ¥5.8 billion. This spending underscores a pivot toward major upcoming projects, most notably the high-stakes development of EA SPORTS FC™ TACTICAL. Despite these outflows, the company maintained a relatively stable equity ratio of 64.5%, supported by steady advertising revenue from its casual gaming subsidiary, GlobalGear.

Strategic shifts characterized the end of the period, including the elevation of the blockchain-related business to a reportable segment and the subsequent post-period transfer of shares in the subsidiary BLOCKSMITH&Co. Due to the inherent volatility of the mobile gaming market and the high degree of uncertainty surrounding the performance of its largest-ever development project, no financial forecast has been provided for the 2024 fiscal year. The current trajectory indicates a heavy reliance on upcoming releases to offset the diminishing returns of the existing portfolio and to stabilize the company’s long-term financial position.