GungHo Online Entertainment FY2015 Q3 Financial Results

GungHo Online Entertainment’s financial results for the third quarter of 2015 reflect a stable performance despite operating within a saturated and maturing domestic Japanese market. Sales for the quarter reached 36.878 billion yen, with an operating profit of 17.394 billion yen. While the company acknowledges that the growth of new smartphone contracts in Japan has slowed as the market reaches the late majority, it maintains high monthly active user counts for its flagship title, Puzzle & Dragons, even as users transition to newer hardware models.

To sustain momentum, the company has focused on diversifying gameplay and expanding its international footprint. Key product updates for Puzzle & Dragons include the introduction of ranking dungeons and co-op play features. Simultaneously, the company is leveraging television advertising to bolster its presence in North America and support the growth of titles like Summons Board. Future growth strategies include the adaptation of Divine Gate into a television anime series and the development of new titles, with ten projects currently in the pipeline.

Geographically, the company is prioritizing expansion into Taiwan through a joint venture with the Gamania Group, scheduled for establishment in November 2015. This strategic move targets a high-potential market characterized by a significant smartphone installation base of over 16 million users and a rapidly growing mobile gaming sector. By partnering with an established local publisher that provides integrated electronic payment systems and extensive retail distribution, the company aims to introduce its portfolio, starting with Summons Board, to the Taiwanese, Hong Kong, and Macao markets.