FinancialKLab
Summary of Financial Results for Third Quarter of Fiscal Year Ended December 31, 2022
1 Nov 20229 pages~15 min full read
KLab Inc. reported 12.5 billion yen in revenue for the first nine months of 2022, a 33.1% decline compared to the 18.7 billion yen recorded in the same period of 2021.
See it on page 8Operating losses narrowed to 570 million yen from 729 million yen in the prior year, while net loss attributable to owners of the parent improved to 307 million yen from 1.7 billion yen.
See it on page 5The company achieved a positive ordinary income of 195 million yen, a significant recovery from an 850 million yen loss in 2021, largely driven by 628 million yen in foreign exchange gains.
See it on page 5The Game Business remains the primary revenue driver, contributing 12.1 billion yen of the total 12.5 billion yen revenue generated between January 1 and September 30, 2022.
See it on page 8Adoption of the new Accounting Standard for Revenue Recognition regarding in-game currency and licenses resulted in a 65 million yen decrease in reported revenue for the period.
See it on page 9Total assets increased to 20.4 billion yen by September 30, 2022, up from 18.7 billion yen at the end of 2021, primarily due to higher cash and deposit holdings.
See it on page 4KLab Inc. has declined to provide consolidated performance forecasts for the remainder of the fiscal year, citing the inherent volatility of the mobile gaming market.
See it on page 8The financial results for KLab Inc. during the first nine months of the fiscal year ended December 31, 2022, reveal a period of significant contraction in revenue alongside narrowing operational losses. Total revenue reached 12.5 billion yen, representing a 33.1% decrease compared to the 18.7 billion yen reported during the same period in 2021. Despite this decline, the company managed to reduce its operating loss from 729 million yen in the previous year to 570 million yen. Notably, the company achieved a positive ordinary income of 195 million yen, a recovery from an 850 million yen loss in 2021, largely bolstered by 628 million yen in foreign exchange gains.
The scope of these results covers the consolidated performance of the Japanese entity and its subsidiaries from January 1 to September 30, 2022. The primary industry segment is the Game Business, which accounted for 12.1 billion yen of total revenue, while the Research & Consulting and other businesses contributed approximately 316 million yen. Geographically, the report focuses on the Japanese market under Japanese GAAP. A significant methodology change occurred during this period with the adoption of the Accounting Standard for Revenue Recognition. This shift altered how the company recognizes income from in-game currency and licenses, resulting in a 65 million yen decrease in reported revenue for the period compared to previous accounting methods.
The consolidated financial status shows total assets increasing to 20.4 billion yen, up from 18.7 billion yen at the end of 2021, supported by a rise in cash and deposits. However, the company reported a net loss attributable to owners of the parent of 307 million yen, though this was a substantial improvement over the 1.7 billion yen loss recorded in the prior year. Due to the inherent volatility of the mobile gaming market, the company has declined to provide specific consolidated performance forecasts for the remainder of the fiscal year.
