FY2017 Third Quarter Financial Results: Japan

The FY2017 third‑quarter results show a modest but steady upward trajectory in sales and operating income, driven primarily by domestic native game revenue. Net sales rose to ¥15.9 billion, up ¥500 million QoQ, with paid‑service sales accounting for ¥14.37 billion and ad‑media sales contributing ¥1.51 billion. Operating income increased to ¥1.55 billion, a ¥50 million gain attributed to higher sales volume and improved cost efficiency. EBITDA reached ¥2.21 billion, reflecting a slight decline in variable costs and a modest rise in fixed expenses linked to new title development.

Cost analysis indicates total expenditures climbed ¥0.5 billion QoQ, with advertising costs falling as a percentage of sales (from 6.9 % to 5.5 %) and commission fees rising in line with sales growth. Labor costs remained stable, while depreciation and goodwill amortization increased due to the consolidation of the 3Minute subsidiary. The company projects full‑year net sales of ¥62 billion and operating income of ¥7 billion, assuming a steady Q4 performance similar to Q3 and additional revenue from upcoming releases.

Operationally, the group released two first‑party titles in Q3 and is advancing four new releases slated for Q4, alongside a robust pipeline of ten native games. Advertising and media businesses, particularly the 3Minute unit, achieved record monthly sales and a 20 % rise in page views. The overall strategy focuses on expanding video‑centric advertising, sustaining game operation profitability, and investing in key development areas while maintaining strict cost controls.