FinancialKLab
Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2021
1 May 20219 pages~14 min full read
KLab Inc. reported a Q1 2021 net loss of 1.38 billion yen, driven by a 13.8% year-over-year revenue decline to 6.39 billion yen and an operating loss of 505 million yen.
See it on page 5The company recorded a 1.54 billion yen extraordinary loss due to software impairments within its Game Business segment.
See it on page 8Management revised its full-year 2021 outlook, projecting annual revenue between 27 billion and 32 billion yen with a potential net result ranging from a 1.3 billion yen loss to a 200 million yen profit.
See it on page 1To pivot toward sustainable growth, KLab acquired casual game developer GlobalGear Co., Ltd. in April 2021, targeting high-volume title production.
See it on page 9Despite the quarterly losses, the company maintained a solid equity ratio of 72.0%, though total assets declined from 23.4 billion yen to 21.1 billion yen.
See it on page 1The board authorized a share repurchase program of up to 900,000 shares to improve capital efficiency and shareholder value.
See it on page 8KLab Inc. reported a significant downturn in financial performance for the first quarter of the fiscal year ending December 31, 2021. Revenue fell 13.8% year-over-year to 6.39 billion yen, resulting in an operating loss of 505 million yen compared to a small profit in the previous year. The company’s bottom line was further impacted by a substantial extraordinary loss of 1.54 billion yen due to impairment losses on software within the Game Business segment. Consequently, the loss attributable to owners of the parent widened to 1.38 billion yen, or 35.96 yen per share.
The report covers the Japanese mobile gaming market for the three-month period from January 1 to March 31, 2021. Despite the quarterly losses, the company maintained a solid equity ratio of 72.0%, though total assets decreased from 23.4 billion yen to 21.1 billion yen. Management revised its full-year forecasts to reflect a range of potential outcomes, projecting annual revenue between 27 billion and 32 billion yen, with results potentially varying from a net loss of 1.3 billion yen to a modest profit of 200 million yen.
Strategic shifts highlighted include an aggressive expansion into the casual gaming sector to achieve sustainable mid-to-long-term growth. This strategy was underscored by the subsequent acquisition of GlobalGear Co., Ltd. in April 2021, a developer known for high-volume title releases and hit games with over 10 million downloads. Additionally, the board authorized a share repurchase program of up to 900,000 shares to improve capital efficiency and shareholder value. These results were prepared in accordance with Japanese GAAP and reflect consolidated performance across the company's core gaming and research segments.
