Summary of Consolidated Financial Results: First Half Ended September 30, 2012

Financial Results for the First Half of the Fiscal Year Ending March 2026

The financial results for the first half of fiscal 2026 show a decline in consolidated sales and profitability compared with the previous year. Total sales fell by 3,929 million yen (‑11.2 %), operating profit dropped 25.2 % to 7,964 million yen, and net profit decreased 15.7 % to 13,465 million yen. The entertainment segment—particularly online and mobile titles—contributed most of the decline, while amusement and real‑estate operations posted modest gains. Forecasts for FY25 indicate that sales will rise to 31,268 million yen (a 4.2 % increase over FY24 H1), with operating profit expected at 7,964 million yen (25.5 % margin). Net profit is projected to reach 13,465 million yen (43.1 % margin), reflecting a 15.7 % year‑on‑year increase from FY24 H1. Dividend per share is forecast at 43 yen, a 28.3 % reduction from the prior year. The company attributes the sales dip to weaker performance in online and mobile releases, while its amusement venues and real‑estate assets (notably the KT Zepp Yokohama concert hall) provide stable revenue. Labor costs rose, variable costs fell, and non‑operating income remained steady. The earnings forecast assumes no significant temporary expenses and uses a 140 yen‑to‑USD exchange rate, noting that operating profit is sensitive to currency fluctuations. Operationally, the firm has maintained Prime Market listing criteria by increasing tradable shares from 29.9 % to 37.3 %. A treasury‑share disposal and public offering in September 2025 expanded the shareholder base. The company’s long‑term strategy, outlined in its fourth medium‑term plan, targets a top‑10 global position by 2031‑33 through pipeline expansion, multi‑platform releases, and intensified IP development. The plan sets quantitative goals of 100 billion yen cumulative operating income, a 30 % profit margin, and a 40 billion‑yen operating profit target over three years. Development personnel have risen to 2,684 by FY25, with a steady increase in new titles across console/PC and mobile platforms. The strategy emphasizes balanced risk control, leveraging existing IPs while pursuing new collaborations and remakes to sustain growth.