FY2019 Fourth Quarter Financial Results Briefing

The briefing presents fiscal year 2019 results and outlines strategic priorities for FY20. Net sales reached ¥70.9 billion, operating income stood at ¥5.5 billion and EBITDA was ¥6.4 billion, with the fourth‑quarter figures of ¥17.4 billion in sales and ¥1.3 billion in operating income matching forecasts and remaining flat from the prior quarter. The company attributes performance to robust overseas distribution of existing titles, successful anniversary releases such as SINoALICE and Another Eden, and cost‑efficiency initiatives that lifted organic profit by ¥250 million.

Geographically, the firm expanded into key Asian markets—including Hong Kong, Taiwan, and China—while launching titles in North America and Europe. Distribution strategy emphasizes self‑distribution on platforms like Nintendo Switch, LINE, and Facebook Games to enhance profitability. The live entertainment pillar introduced the VTuber platform “REALITY,” adding avatar functions and official programs, while advertising and media efforts focused on vertical media expansion.

FY20 plans center on aggressive investment in three pillars: game development (engine, IP, global strategy), live entertainment (REALITY platform enhancements and new VTuber production), and advertising/media (vertical media growth). The company aims to launch two new titles in FY20, with a pipeline of four to six projects for FY21 and beyond. Dividend policy will target a 2 % payout ratio, with a ¥10 dividend proposed for the current year. The overall outlook remains positive, emphasizing stable earnings from existing titles and growth potential from new IPs and overseas markets.