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Summary
The FY2020 second‑quarter results show a net sales volume of ¥16.4 billion, up 0.64 % from the prior quarter and down 1.29 % year‑over‑year, reflecting a successful launch of a third‑party distributed title and continued growth in first‑party IP sales across the United States, Europe, and Asia. Operating income reached ¥0.81 billion, a decline of ¥0.36 billion versus the previous quarter largely due to higher royalty and advertising expenses, yet still surpassing forecast expectations. EBITDA stood at ¥1.09 billion, a modest QoQ decrease of ¥0.20 billion, while net income surged to ¥2.55 billion, driven by a ¥3.0 billion gain from investment‑security sales. Cost analysis indicates total operating costs rose by ¥1.0 billion QoQ to ¥15.62 billion, with variable costs increasing by ¥0.02 billion and fixed costs rising by ¥1.00 billion, largely attributable to elevated advertising spend during the year‑end season campaign and higher commission costs linked to increased sales. Labor costs remained stable, while depreciation and goodwill amortization were unchanged. Strategic initiatives highlighted include the simultaneous global release of a third‑party title, expansion of the REALITY virtual live‑distribution platform with low‑latency enhancements, and intensified media marketing campaigns that boosted overseas sales by 2.7× for the “Another Eden” series. The company projects firm profitability in future quarters, supported by its diversified game, live‑entertainment, and advertising businesses.
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