FinancialKLab
Summary of Financial Results for Third Quarter of Fiscal Year Ending December 31, 2016
1 Nov 201613 pages~19 min full read
KLab Inc. reported a net loss of 801.3 million yen for the first nine months of 2016, a significant reversal from the 934.4 million yen profit recorded during the same period in 2015.
See it on page 12Revenue declined 11.9% year-over-year to 14.59 billion yen, driven primarily by underperformance in the title Love Live! School Idol Festival.
See it on page 4Profitability suffered sharp declines, with operating income falling 54.6% to 1.03 billion yen and ordinary income dropping 94.2% to 123.6 million yen.
See it on page 4The company incurred 757.7 million yen in impairment losses related to specific titles, including Puzzle Wonderland and Age of Empires: World Domination.
See it on page 12Non-operating financial pressures included 849.3 million yen in foreign exchange losses and 868.2 million yen in total extraordinary losses.
See it on page 4Despite the losses, the company maintains a stable financial position with an equity ratio of 75.4%.
See it on page 4The full-year forecast projects 19.29 billion yen in revenue and a net loss of 655 million yen, with increased Q4 advertising spend planned for television commercials.
See it on page 5This financial summary outlines the consolidated operating performance of KLab Inc. for the first nine months of the fiscal year ending December 31, 2016. The data reveals a period of contraction, with revenue declining 11.9% year-over-year to 14.59 billion yen. This downturn is primarily attributed to decreased earnings from the title Love Live! School Idol Festival. Profitability metrics saw more significant declines, with operating income falling 54.6% to 1.03 billion yen and ordinary income dropping 94.2% to 123.6 million yen. The company reported a net loss attributable to owners of the parent of 801.3 million yen, contrasting with a 934.4 million yen profit in the same period of 2015.
The financial results were further impacted by non-operating and extraordinary factors. Foreign exchange losses reached 849.3 million yen, while extraordinary losses totaled 868.2 million yen, largely driven by 757.7 million yen in impairment losses related to titles such as Puzzle Wonderland and Age of Empires: World Domination. Despite these losses, the company maintains a solid equity ratio of 75.4%, though total net assets decreased by 714.2 million yen compared to the end of the previous fiscal year.
The scope of this analysis covers the Japanese mobile gaming market and international operations from January 1 to September 30, 2016. Methodology follows Japanese GAAP, with notable updates to accounting policies regarding business combinations and depreciation methods. Looking ahead, the full-year forecast projects total revenue of 19.29 billion yen and a net loss of 655 million yen. Management expects increased advertising expenses in the fourth quarter due to planned television commercials, while other operating costs are anticipated to remain stable.
