FinancialGungHo Online Entertainment
Financial Results of Fiscal Year Ended December 31, 2025
1 Feb 202620 pages~31 min full read
GungHo Online Entertainment reported a severe 87.4% decline in profit attributable to owners to ¥1,407 million and a 71.1% drop in operating income to ¥5,056 million for the fiscal year ended December 31, 2025.
See it on page 1Net sales fell by 10% to ¥93,242 million, while cash and cash equivalents decreased by more than 50% to ¥31,021 million due to rising development costs and global inflation.
See it on page 1Net profit per share saw a significant contraction, falling from ¥182.67 in the previous period to ¥25.79.
See it on page 19To bolster investor confidence, the company increased its year-end dividend to ¥90.00 per share and established a new policy targeting a 4% Dividend on Equity and a payout ratio of at least 50%.
See it on page 7The company executed a ¥5,003 million share buyback and authorized an additional ¥5 billion repurchase program, alongside the cancellation of 16 million treasury shares to improve capital efficiency.
See it on page 20Strategic expansion efforts included the launch of new titles 'LET IT DIE: INFERNO' and 'Ragnarok: Twilight' and the elevation of Indonesia and Latin America to independent reporting categories.
See it on page 6Due to market volatility, GungHo has declined to provide formal financial forecasts for the 2026 fiscal year.
See it on page 2GungHo Online Entertainment experienced a significant downturn during the fiscal year ended December 31, 2025, characterized by a 10% decline in net sales to ¥93,242 million and a severe 87.4% drop in profit attributable to owners, which fell to ¥1,407 million. Operating income plummeted by 71.1% to ¥5,056 million as the company grappled with rising development costs and global inflationary pressures. This financial contraction was further reflected in the company’s liquidity, with cash and cash equivalents decreasing by more than half to ¥31,021 million by the end of the period.
Despite these challenges, the organization expanded its global footprint by launching new titles such as LET IT DIE: INFERNO and Ragnarok: Twilight, while sustaining its flagship Puzzle & Dragons through consistent event collaborations. The geographic scope of operations also evolved, with Indonesia and Latin America emerging as independent reporting categories due to their increasing strategic importance. To stabilize investor confidence amidst this volatility, the company implemented a revised shareholder return policy targeting a 4% Dividend on Equity and a consolidated payout ratio of 50% or higher, resulting in an increased year-end dividend of ¥90.00 per share.
Capital management remained a priority through the repurchase of ¥5,003 million in treasury shares and a subsequent board resolution to buy back an additional ¥5 billion in common stock. These measures, alongside the cancellation of 16 million treasury shares, aim to improve capital efficiency and net profit per share, which fell from ¥182.67 to ¥25.79 over the fiscal year. Due to the inherent unpredictability of the digital content market, no formal financial forecasts have been provided for the 2026 fiscal year.
