FinancialKLab
Summary of Financial Results for Third Quarter of Fiscal Year Ended December 31, 2021
1 Nov 20218 pages~11 min full read
KLab Inc. reported a 29.0% year-over-year revenue decline to 18.7 billion yen for the first nine months of 2021, resulting in a net loss of 1.76 billion yen.
See it on page 5The core Game Business segment drove the downturn, with segment revenue falling from 26.1 billion yen in 2020 to 18.4 billion yen in 2021.
See it on page 8Profitability was severely impacted by a surge in impairment losses, which tripled year-over-year from 498 million yen to 1.54 billion yen.
See it on page 1Despite a 25% reduction in selling, general, and administrative expenses to 2.7 billion yen, the company could not offset the contraction in gross profit.
See it on page 1The company projects a full-year net loss of 2.3 billion yen for 2021 and has confirmed that no dividends will be paid for the fiscal year.
See it on page 1Total assets decreased to 20.8 billion yen from 23.4 billion yen at the end of 2020, though the equity ratio remained stable at 70.6%.
See it on page 4KLab Inc. reported a significant downturn in financial performance for the first nine months of the fiscal year ended December 31, 2021. Consolidated revenue fell by 29.0% year-over-year to 18.7 billion yen, resulting in an operating loss of 729 million yen and a net loss attributable to owners of the parent of 1.76 billion yen. This represents a sharp reversal from the same period in 2020, which saw 26.3 billion yen in revenue and 855 million yen in profit.
The decline is primarily attributed to the core Game Business segment, where revenue dropped from 26.1 billion yen to 18.4 billion yen. Profitability was further impacted by a substantial increase in extraordinary losses, specifically impairment losses, which rose from 498 million yen in the previous year to 1.54 billion yen. While selling, general, and administrative expenses were reduced by approximately 25% to 2.7 billion yen, these savings were insufficient to offset the contraction in gross profit.
Geographically focused on the Japanese market but operating globally, the company’s balance sheet shows total assets decreased to 20.8 billion yen from 23.4 billion yen at the end of 2020. Despite the losses, the equity ratio remained stable at 70.6%. The full-year forecast for 2021 anticipates continued challenges, with projected annual revenue of 24.0 billion yen and a net loss of 2.3 billion yen. No dividends were paid or forecasted for the fiscal year. The results were prepared under Japanese GAAP and include data from January 1 to September 30, 2021.
