Summary of Financial Results for Third Quarter of Fiscal Year Ending December 31, 2015 (Japanese GAAP) (Consolidated)

KLab Inc. reported consolidated financial results for the first nine months of the fiscal year ending December 31, 2015, demonstrating steady revenue growth and improved operating efficiency despite a decline in net income. Revenue reached 16.57 billion yen, a 4.0% increase over the same period in 2014. Operating income rose significantly by 20.1% to 2.27 billion yen, and ordinary income grew 6.6% to 2.13 billion yen. However, net income fell 27.6% to 934 million yen, impacted by higher income taxes and foreign exchange losses.

The performance was primarily driven by the game business segment, which accounted for nearly all company revenue. Key contributors included the sustained popularity of Love Live! School Idol Festival, which saw a recovery in user spending following the release of a theatrical film, and the successful July 2015 launch of BLEACH Brave Souls. The latter reached the top ten in App Store sales rankings shortly after release. While cost of sales remained stable, selling, general, and administrative expenses increased by 25.3% due to aggressive advertising for new titles.

Geographically focused on the Japanese market with consolidated global operations, the financial status remains robust with an equity ratio of 72.8%. Total assets increased to 13.76 billion yen, supported by a rise in intangible assets and investments. For the full fiscal year 2015, revenue is forecast at 21.57 billion yen with a projected net income of 759 million yen. The methodology follows Japanese GAAP, incorporating specific accounting changes related to employee stock ownership plans and adjustments to corporate tax rates.