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Notice Concerning Non-Operating Income Recorded for Fourth Quarter FY2016 and Revision of Earnings Forecasts for FY2016

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KLab Inc. announced that it will record 460 million yen of non‑operating income from foreign currency exchange gains in the fourth quarter of FY2016, primarily due to re‑valuation of foreign currency assets. This adjustment is expected to reduce the group’s overall foreign currency exchange losses for the full fiscal year to 388 million yen. The company also revised its consolidated earnings forecast for FY2016, reflecting higher revenue and lower operating profit than initially projected. Revenue is now expected at 19,599 million yen versus the previous estimate of 19,290 million yen, an increase of 309 million yen (1.6%). Operating profit is projected at 1,274 million yen compared with the earlier forecast of 1,381 million yen, a decline of 107 million yen (7.7%). Ordinary income is projected at 830 million yen, up from the prior estimate of 523 million yen (58.7% increase). Net income attributable to owners of the parent is now forecast at –814 million yen, a larger loss than the previously projected –655 million yen (a 24.3% worsening). The revisions stem from stronger-than‑expected sales of Love Live! School Idol Festival and Bleach: Brave Souls, higher outsourcing and subcontracting costs linked to joint‑development projects, and losses from the liquidation of a subsidiary and valuation write‑downs on investment securities. The company will release detailed financial results for FY2016 and forecasts for FY2017 on February 10, 2017.

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Notice Concerning Non-Operating Income Recorded for Fourth Quarter FY2016 and Revision of Earnings Forecasts for FY2016

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