Financial Results for the 2nd Quarter of Fiscal Year Ending December 31, 2026

GungHo Online Entertainment’s financial results for the second quarter of the fiscal year ending December 31, 2026, reflect a period of steady growth and strategic investment in global content development. The company reported consolidated net sales of 51,759 million yen for the six-month period ending June 30, 2026, representing a 2.3% increase compared to the same period in the previous year. Profitability metrics showed significant improvement, with operating profit rising 27.1% to 6,380 million yen and ordinary profit increasing 47.2% to 7,878 million yen. Interim net profit attributable to owners of the parent reached 3,460 million yen, a 40.4% year-on-year increase.

The company’s performance was driven by the continued monetization of its flagship title, Puzzle & Dragons, which maintained solid sales and surpassed 64 million cumulative domestic downloads. Additionally, the international expansion of Ragnarok-related titles, managed by subsidiary Gravity Co., Ltd., contributed positively to the period's results. Despite these gains, the company continues to incur significant upfront costs related to a pipeline of nine new titles, including the upcoming release of Ninjala 2: The Uncharted Planet.

As of June 30, 2026, the company reported total assets of 165,141 million yen and a shareholder's equity ratio of 69.3%. The decrease in total net assets from the previous fiscal year-end is primarily attributed to dividend payments and the execution of treasury share acquisitions and subsequent cancellations. Due to the inherent volatility of the content business and the difficulty of forecasting short-term market fluctuations, the company maintains its policy of disclosing quarterly financial results while refraining from providing full-year consolidated earnings forecasts.