Financial Results: Fiscal Year Ended December 31, 2025 (Japan)

GungHo Online Entertainment reported a 10 % decline in consolidated net sales to ¥93,242 million for fiscal year 2025, with operating profit falling 71.1 % to ¥5,056 million and attributable profit dropping 87.4 % to ¥1,407 million. The downturn is attributed to higher development costs and a flat mobile‑gaming market, while total assets increased to ¥169,474 million. Cash balances fell sharply to ¥31,021 million due to significant investing and financing outflows, notably treasury‑share repurchases. In response, the company announced a revised shareholder‑return policy that targets a 30 %+ dividend payout ratio and sets an ordinary dividend of ¥90.00 per share for FY 2025, signalling a shift toward more proactive profit distribution.

The new policy adopts a dual approach of stable dividends and flexible share buybacks. It aims for a 4 % dividend‑on‑equity (DOE) and a consolidated payout ratio of at least 50 %, while buybacks will be executed as capital‑efficiency measures based on board decisions and market conditions. This change takes effect from the fiscal year ending December 31, 2025.

Profitability metrics deteriorated sharply: net profit per share fell from ¥182.67 to ¥25.79, and fully‑diluted net profit per share declined similarly; net assets per share decreased modestly from ¥2,280.75 to ¥2,242.37. Net sales remained concentrated in Japan (¥31.8 bn) and Asia, with Indonesia now reported separately at ¥3.6 bn after reclassification from the broader “Asia” category. The company also approved a 2026 treasury‑share repurchase program of up to ¥5 bn for 2.1 million shares, followed by a cancellation of 16 million shares to improve capital efficiency.