KLab Q3 2015 Financial Results

KLab’s financial results for the third quarter of 2015 reflect a period of growth compared to the previous quarter, though performance fell short of internal guidance. Revenue reached 6,135 million yen, representing a 27.9% increase over the second quarter, while operating profit rose 35.3% to 720 million yen. Despite these quarterly gains, the company missed its revenue guidance by 5.6% and its operating profit target by 28.0%. Ordinary income declined 15% sequentially, primarily due to foreign exchange losses.

The company’s performance was heavily influenced by its two primary mobile titles. Love Live! School Idol Festival saw strong revenue in July and August, bolstered by film-related promotions, but experienced a sharper-than-expected decline in September as content supply slowed. Similarly, BLEACH Brave Souls launched with strong initial engagement in July, but the rate of in-game purchases trended downward throughout the quarter. Other titles, such as Celestial Craft Fleet, maintained stable performance.

Looking ahead to the fourth quarter, the company has issued conservative guidance, projecting 5,000 million yen in revenue and zero operating profit. This outlook accounts for the anticipated decline in core title revenue and planned promotional spending of 600 million yen. Strategic initiatives for the future include the expansion of the event business—highlighted by an Ariana Grande concert—and the formation of KLab Venture Partners to support early-stage startups. Additionally, the company is diversifying its development model by providing its proprietary software development kit (KG SDK) and acquired IP rights to external partners to bolster its publishing pipeline. The company maintains a strong financial position with an equity ratio exceeding 70%.