The firm reported FY2019 3Q net sales of ¥17.6 billion and an operating income of ¥1.6 billion, both exceeding internal forecasts due to fixed cost reductions and operational efficiencies.
International expansion served as a primary growth driver, highlighted by the global self-distribution of 'Another Eden' across eight regions, which achieved performance levels comparable to domestic operations.
Cross-media collaboration events proved effective for user acquisition, notably driving a 1.5-fold increase in daily active users for the 'DanMachi' title.
Growth in native mobile games and international revenue successfully offset the ongoing, gradual decline of the company’s browser game segment.
The company projects FY2019 4Q net sales to remain steady between ¥17 billion and ¥18 billion, supported by anniversary events and the launch of 'AFTERLOST'.
Strategic diversification efforts include investment in the VTuber viewing app 'REALITY', with a focus on expanding original programming to bolster the live entertainment business.
The third quarter of fiscal year 2019 for this Japanese mobile gaming and live entertainment firm was characterized by a strategic shift toward overseas distribution and the restructuring of unprofitable business segments. Financial results for the period included net sales of ¥17.6 billion and an operating income of ¥1.6 billion, which exceeded internal forecasts. While a one-off event impacted these figures, the underlying organic performance remained stable as the company successfully reduced fixed costs and improved operational efficiency across its existing game portfolio.
A primary driver of growth during this period was the international expansion of first-party and licensed intellectual properties. The global launch of Another Eden marked a significant milestone as the company’s first self-distributed title in eight overseas regions, with international performance reaching a scale comparable to domestic operations. Additionally, global collaboration events for titles such as DanMachi and SINoALICE proved highly effective, with the former seeing a 1.5-fold increase in daily active users following a cross-media partnership. While the browser game segment continued a gradual decline, the growth in native mobile games and overseas revenue successfully offset these losses.
Looking ahead to the fourth quarter, the company projected net sales between ¥17 billion and ¥18 billion. Growth is expected to be fueled by anniversary events for mainstay titles and the launch of AFTERLOST, the latest entry in the Shoumetsu Toshi series. Beyond gaming, the company is investing in its live entertainment business through the VTuber viewing app REALITY, focusing on expanding original program lineups. The overall strategy emphasizes strengthening three core earnings pillars while utilizing successful new product launches as potential upside for future fiscal years.
