FY2024 Third Quarter Financial Results

The third quarter of fiscal year 2024 was characterized by significant financial growth, with consolidated net sales reaching ¥17.2 billion and operating profit surging 211% quarter-over-quarter to ¥2.5 billion. This performance was primarily anchored by the Game and Anime segment, which generated ¥13.0 billion in sales. The success of major live service events, specifically the second anniversary of Heaven Burns Red, served as the primary catalyst for this expansion. Based on these results, the company revised its dividend policy upward to a 3% Dividend on Equity and a 30% payout ratio, signaling confidence in reaching the upper end of its full-year operating profit forecast of ¥4.0 to ¥6.0 billion.

Strategic shifts are evident across the Metaverse and DX segments as the organization streamlines its operations. The Metaverse business reported an operating profit of ¥0.08 billion despite a slight sales decline following the transfer of B2B operations to the DX unit. While the Commerce segment faced headwinds due to search algorithm updates affecting media traffic, the DX business grew 14% quarter-over-quarter, supported by a robust backlog of support projects and the expansion of the jobda recruiting platform. Looking toward fiscal year 2026, the pipeline includes 18 scheduled titles and medium-term operating profit targets of ¥1.9 billion for Metaverse and ¥3.3 billion for Commerce.

The financial foundation remains stable, supported by a net cash position of ¥32.2 billion and a high-performing investment portfolio valued at ¥33.0 billion. With an internal rate of return of 18%, the investment business continues to outperform domestic venture capital benchmarks through its stakes in U.S. funds and various startups. Although a reactive decline in gaming revenue is anticipated for the fourth quarter, the combination of a stabilized headcount of 1,610 employees and a diversified revenue stream across digital transformation and entertainment sectors positions the group for sustained long-term growth.