GungHo Online Entertainment: Correction to 2025 Financial Results

Key insights

6 takeaways

01
GungHo Online Entertainment corrected its 2025 consolidated statement of cash flows due to errors in foreign exchange rate applications and tax payment calculations.See it on page 1
02
Operating cash flow was revised from a previously reported positive 149 million yen to a net cash outflow of 355 million yen.See it on page 3
03
Corporate tax payments for the 2025 fiscal year were adjusted upward from 4,804 million yen to 6,607 million yen.See it on page 3
04
The correction is limited to the 2025 fiscal year and does not impact the company's previously reported year-end cash and cash equivalents balance of 31,021 million yen.See it on page 1
05
Financial figures related to investment activities and financing activities remain unchanged from the original February 13, 2026, disclosure.See it on page 2
06
The company's overall liquidity position remains unaffected by these reporting adjustments.See it on page 3

Summary

GungHo Online Entertainment has issued a formal correction regarding its consolidated financial results for the fiscal year ending December 31, 2025, originally disclosed on February 13, 2026. The primary purpose of this update is to rectify inaccuracies identified within the consolidated statement of cash flows. The discrepancies were largely attributed to errors in the application of foreign exchange rates and subsequent adjustments to tax payment figures.

The correction specifically impacts the reported cash flow from operating activities for the 2025 fiscal year. While the initial report indicated a positive cash flow of 149 million yen, the revised data shows that operating activities actually resulted in a net cash outflow of 355 million yen. This adjustment stems from a revision in the reported corporate tax payments, which increased from 4,804 million yen to 6,607 million yen, alongside various minor reclassifications across other operating line items.

Despite these changes to the operating cash flow, the company confirmed that the figures for investment activities, financing activities, and the final balance of cash and cash equivalents remain unchanged at 31,021 million yen. The scope of this correction is limited to the 2025 fiscal year financial statements and does not alter the company's overall liquidity position or the previously reported year-end cash balance. The updated data ensures accurate reporting for stakeholders and maintains consistency with the company's internal financial records.