Report

FY2019 First Quarter Financial Results

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Summary

The FY2019 first‑quarter results show net sales of ¥18.2 billion, operating income of ¥1.6 billion and EBITDA of ¥1.9 billion, reflecting a 0.4‑percentage‑point rise in operating margin to 8.9 % QoQ. Net sales were driven primarily by paid‑service revenue of ¥14.87 billion, with other streams such as advertising and licensing contributing the remainder. Variable costs fell by ¥800 million QoQ, largely due to reduced advertising spend and commission fees, while fixed costs remained stable. Labor expenses increased modestly as headcount rose from 1,480 to 1,604 employees. Geographically the company expanded overseas distribution in October, launching Danmachi in North America and extending to South Korea and Taiwan. New first‑party titles, including Wild Arms: Million Memories for PlayStation® and the LINE QUICK GAME platform releases of Fishing Star and Another Eden, were introduced. A livestreaming platform for VTubers, REALITY, was launched in August, and joint ventures with music labels were announced to support VTuber content. The forecast for FY19 Q2 projects net sales of ¥17.0‑18.0 billion and operating income of ¥1.0‑1.5 billion, based on current title performance and planned overseas releases. The company’s strategy focuses on multi‑platform distribution, fan community expansion through media collaborations, and monetization of first‑party IP across gaming, live entertainment, and advertising sectors.

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