FY2019 3Q Presentation: Financial Results

The presentation reports FY2019 Q3 financial results, highlighting net sales of ¥17.6 billion and operating income of ¥1.6 billion, both near forecasted targets with operating income exceeding expectations. Net sales were slightly impacted by one‑off events, reducing revenue by ¥390 million; after adjusting for these, organic sales were ¥17.25 billion and operating income ¥1.09 billion, indicating stable profitability despite a modest sales decline. Cost structure improvements—particularly reduced fixed costs through outsourcing and operational restructuring—offset higher advertising spend on overseas launches such as “Another Eden.”

Geographically, the company expanded its overseas distribution footprint, launching self‑distribution in eight countries for “Another Eden” and achieving a 1.5× increase in daily active users following a global collaboration with “Date A Live.” Domestic and overseas sales volumes have converged, supporting the company’s strategy to balance core titles with new IPs. New first‑party IP “AFTERLOST” entered pre‑registration, with a planned end‑of‑fiscal‑year release in Japan, Hong Kong, and Taiwan. The live entertainment arm “REALITY” continues to grow its VTuber viewing app lineup, while media and advertising partnerships broaden content offerings.

The Q4 forecast projects net sales of ¥17–18 billion and operating income of ¥1–1.5 billion, driven by anniversary events for flagship titles, ongoing overseas expansion, and the launch of “AFTERLOST.” The company maintains a stable investment level in promotions and development, anticipating future upside if new titles achieve hit status. The analysis is based on quarterly financial statements, operational metrics, and strategic rollout plans presented by senior management.