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Summary
The FY2019 third‑quarter results demonstrate a solid operating performance driven largely by overseas distribution of first‑party IP and cost efficiencies in existing titles. Net sales reached ¥17.6 billion, slightly below the forecasted ¥18 billion range but up 0.23 % YoY, while operating income rose to ¥1.6 billion, surpassing the forecasted ¥1.5 billion and marking a 0.59 % QoQ increase. EBITDA stood at ¥1.8 billion, reflecting a 0.60 % QoQ gain and a 1.35 % YoY decline, largely attributable to one‑off events that added ¥390 million in sales and ¥460 million in income. Adjusted figures, excluding these events, show net sales of ¥17.25 billion and operating income of ¥1.09 billion, underscoring the underlying strength. Key drivers include a successful launch of “Another Eden” in eight overseas markets, which contributed significantly to paid‑service sales (¥13.65 billion), and a global simultaneous collaboration event for “DanMachi” that boosted user engagement. The company also advanced its mobile pipeline, with five titles in development and pre‑registrations for “AFTERLOST” underway. Cost management improved markedly, with total costs falling ¥700 million QoQ to ¥16.1 billion, driven by reduced outsourcing and streamlined operations. Geographically, the focus remains on Japan with expanding presence in North America, Europe, and Asia‑Pacific through self‑distribution and partner agreements. The 4Q forecast projects net sales of ¥17–18 billion and operating income of ¥1.0–1.5 billion, anticipating continued momentum from anniversary events and new title releases. The company’s workforce totals 1,693 employees across game‑entertainment, advertising, and other businesses.
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