FinancialGungHo Online Entertainment
Management Policies Under New Management Structure
1 Feb 202611 pages~7 min full read
Kazuya Sakai, formerly CFO, has been appointed CEO, while former CEO Kazuki Morishita will focus exclusively on game development to balance creative output with financial discipline.
See it on page 2GungHo has implemented a new dividend policy targeting a 4% Dividend on Equity (DOE) ratio and a minimum payout ratio of 50%, resulting in an increased ordinary dividend of 90 yen per share for FY2025.
See it on page 10The company is executing a 5 billion yen share buyback and cancelling approximately 23.1% of its outstanding treasury shares to enhance capital efficiency.
See it on page 8Of the company's 70 billion yen in non-consolidated cash, 50 billion yen is allocated for five-year development and maintenance, while 20 billion yen is reserved for M&A and shareholder returns.
See it on page 9Governance reforms include increasing the proportion of independent outside directors to 50% of the board.
See it on page 11Operational priorities include restoring the frequency of IP collaboration events and strengthening the collaborative relationship with subsidiary Gravity regarding the Ragnarok IP.
See it on page 6GungHo Online Entertainment’s 2026 management policy outlines a strategic leadership transition designed to accelerate global growth and enhance capital efficiency. Under the new structure, former CEO Kazuki Morishita transitions to a role focused exclusively on game development and pipeline expansion, while Kazuya Sakai, formerly the CFO, assumes the role of Representative Director, President, and CEO. This shift aims to balance creative output with disciplined financial management and improved dialogue with the equity market.
The strategy focuses on four primary pillars: realizing global hit products, optimizing company-wide costs, strengthening the collaborative relationship with subsidiary Gravity, and promoting capital market-attuned management. A key operational priority is restoring the frequency of IP collaboration events, which saw a significant decline in FY2025, to drive stable revenue. Additionally, the company is implementing a new HR system and cost-benefit analysis framework to improve resource allocation and talent development.
Financially, the policy introduces aggressive shareholder return measures and a refined cash allocation strategy. GungHo has established a new dividend policy based on a 4% Dividend on Equity (DOE) ratio, targeting a minimum payout ratio of 50%. For FY2025, the company scheduled an ordinary dividend of 90 yen per share, a significant increase from 60 yen in FY2024. Furthermore, the company announced a 5 billion yen share buyback and the cancellation of approximately 23.1% of its outstanding treasury shares.
The scope of this policy covers the company’s global operations with a specific emphasis on the Japanese market and its relationship with Gravity’s Ragnarok IP. Of the approximately 70 billion yen in non-consolidated cash and deposits, 50 billion yen is earmarked for development and maintenance over the next five years, with the remaining 20 billion yen split between growth investments, such as M&A, and shareholder returns. Governance is also being strengthened by increasing the proportion of independent outside directors to 50%.
