FinancialNippon Ichi Software
Semi‑Annual Report: April 1 2024 – September 30 2024
11 Nov 202425 pages~7 min full read
Nippon Ichi Software reported a net loss of 171 million yen for the period of April 1, 2024, to September 30, 2024, a significant decline from the 290 million yen profit recorded in the same period the previous year.
See it on page 4Net sales fell 20.0% year-over-year to 2,447 million yen, driven primarily by a 20.6% decline in the entertainment segment due to the timing of major title releases.
See it on page 19The company recorded an operating loss of 205 million yen and a negative operating cash flow of 284 million yen during the first half of the fiscal year.
See it on page 6Despite short-term earnings volatility, the group maintains a strong financial foundation with an equity ratio of 71.4% and total assets of 10.58 billion yen.
See it on page 4Strategic efforts are currently focused on strengthening global development and sales, highlighted by the domestic launch of Disgaea 7: Vows of the Virtueless (Complete Edition) and preparations for the company's first simultaneous global release, Phantom Brave: The Lost Hero.
See it on page 5The group continues to rely on digital distribution platforms including Steam, PlayStation Network, and Nintendo eShop to reach markets across Japan, North America, Europe, and Asia.
See it on page 5Nippon Ichi Software’s semi-annual report for the period of April 1, 2024, to September 30, 2024, details a challenging fiscal first half characterized by a transition to a net loss position. The primary thesis of the report reflects a strategic focus on strengthening development and sales capabilities amid a volatile global economic environment marked by rising prices and geopolitical uncertainty. Despite these headwinds, the group continues to invest in its core entertainment business while maintaining secondary operations in student dormitory management.
Financial data indicates a significant downturn compared to the previous year. Net sales fell by 20.0% to 2,447 million yen, resulting in an operating loss of 205 million yen and a net loss attributable to owners of the parent of 171 million yen. This contrast is sharp against the prior year’s net profit of 290 million yen. The entertainment segment, which accounts for the vast majority of revenue, saw a 20.6% decline in sales, attributed partly to the timing of major releases. Key activities during the period included the domestic launch of titles such as Disgaea 7: Vows of the Virtueless (Complete Edition) and preparations for the group’s first simultaneous global release, Phantom Brave: The Lost Hero.
The scope of the report covers consolidated operations across Japan, North America, Europe, and Asia. Geographically, the group relies heavily on the localization and distribution of its titles through digital platforms like Steam, PlayStation Network, and Nintendo eShop. Methodologically, the findings are based on consolidated financial statements prepared under Japanese accounting standards and subjected to a quarterly review by Tokai Kaikeisha. While the group faced a decrease in total assets to 10.58 billion yen and a negative operating cash flow of 284 million yen, it maintains a robust equity ratio of 71.4%, suggesting continued long-term financial stability despite short-term earnings volatility.
