FY2019 Fourth Quarter Financial Results

Fiscal year 2019 concluded with net sales of ¥70.9 billion and operating income of ¥5.5 billion, driven primarily by the successful transition to a long-term operating system and the aggressive expansion of overseas distribution. Performance remained steady through the fourth quarter, yielding ¥17.4 billion in net sales as global partnerships and self-distribution efforts bolstered titles such as Another Eden and DanMachi. While domestic coin consumption experienced a slight year-over-year decline to 10.9 billion, the core games business maintained stability through large-scale anniversary events and strategic multi-platform expansions onto the Nintendo Switch and Facebook Instant Games.

The strategic framework for future growth rests on three pillars: stabilizing the games division as a financial foundation, scaling advertising and media through vertical portfolios, and investing heavily in the REALITY VTuber platform. Global reach has become a central priority, evidenced by Another Eden’s expansion into 34 regions and SINoALICE securing over one million pre-registrations across 150 countries. These international efforts are complemented by a focus on the Chinese market and the development of two major third-party IP titles scheduled for release in the coming fiscal year.

Financial health remains robust, characterized by a strong cash position of ¥84.5 billion and a successful reduction in total costs to ¥16.07 billion. Although total net assets saw a minor contraction, the overall trajectory emphasizes a shift toward high-growth emerging sectors like virtual live streaming and community-driven media. By leveraging strategic alliances and community engagement, the objective is to offset fluctuations in traditional mobile gaming consumption with diversified revenue streams across the global digital entertainment landscape.