Key insights
7 takeaways · ~3 min read- 01The company achieved net sales of ¥31.07 billion and operating income of ¥9.95 billion in FY14 3Q, with operating income increasing by ¥0.8 billion despite a decline in net sales, primarily due to cost-cutting initiatives.See it on page 5
- 02Overall costs were cut by ¥2.35 billion (10.0% QoQ) to ¥21.12 billion, including a ¥1.78 billion (12.6% QoQ) reduction in fixed costs and a ¥0.42 billion decrease in advertising costs due to revised release schedules and increased efficiency.See it on page 8
- 03Overseas operations (U.S., Canada, and South Korea studios) achieved quarterly profitability, with firm sales from their titles, although Japan studio titles for overseas markets weakened.See it on page 22
- 04The full-year FY14 forecast projects net sales of ¥129.0 billion and operating income of ¥38.0 billion, with the projected timing for a turnaround revised to FY2015 from the initial estimate of 4Q.See it on page 9
- 05Coin consumption on smartphones declined approximately 3% QoQ, but smartphones now account for approximately 71% of total coin consumption, with first-party titles like Monster Planet and Kaizoku Oukoku Columbus showing growth through UI/UX improvements.See it on page 12
- 06The company revised its release schedule for some titles, canceling one first-party title and postponing two others to FY2015, while continuing to release new titles through joint ventures and partners, including MONSTER HUNTER: ROAR OF CARDS.See it on page 14
- 07New labels like Wright Flyer Studios were created for native games in Japan, with two titles planned for release in 4Q, and overseas studios (U.S. and South Korea) are planning 4Q releases of new titles in genres like 3D strategy and 3D MORPG.See it on page 25
Summary
FY2014 Third Quarter Financial Results & Net sales of ¥31.07 billion; operating income of ¥9.95 billion Financial ⁃ Net sales declined as we were unable to maintain through March the recovery trend results seen toward the end of 2013 and start of 2014 overview ⁃ Despite the negative factor of a decline in net sales, we achieved a ¥0.8 billion increase in operating income through cost-cutting initiatives & Achieved qu...
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