FinancialKLab
Notice Concerning the Revision of Earnings Forecasts and Extraordinary Loss
10 Nov 20141 pages~2 min full read
KLab Inc. significantly outperformed its Q3 2014 earnings forecasts, with operating income rising 45.9% to 1,891 million yen and ordinary income increasing 54.6% to 1,999 million yen.
The company’s revenue for the first nine months of 2014 is projected to reach 15,940 million yen, a 2.3% increase over previous estimates and a major turnaround from the losses reported in the same period of 2013.
Strong sales from mobile titles 'Love Live! School Idol Festival' and 'Celestial Craft Fleet' were the primary drivers of the company's improved financial performance.
Net income for the nine-month period is forecasted at 1,290 million yen, reflecting a 25% increase over the company's prior estimate.
KLab Inc. recognized an extraordinary impairment loss of 98 million yen related to the revaluation of fixed assets within its gaming division.
The core mobile gaming portfolio's profitability was sufficient to offset the 98 million yen impairment loss, allowing for an upward revision of the total fiscal outlook.
KLab Inc. has revised its consolidated earnings forecasts upward for the third quarter of the fiscal year ending December 2014, covering the nine-month period from January 1 to September 30, 2014. This adjustment reflects a significant improvement in financial performance compared to both previous projections and the prior year’s results. The primary drivers for this growth are the strong sales performances of the mobile titles Love Live! School Idol Festival and Celestial Craft Fleet. These titles have propelled revenue and income levels beyond initial expectations, signaling a robust period for the company’s gaming operations within the Japanese market.
The revised figures indicate that revenue is expected to reach 15,940 million yen, a 2.3% increase over previous projections. More notably, profitability metrics show substantial gains, with operating income adjusted upward by 45.9% to 1,891 million yen and ordinary income rising 54.6% to 1,999 million yen. Net income is now forecasted at 1,290 million yen, representing a 25% increase from the prior estimate. This performance marks a dramatic turnaround from the same period in 2013, where the company reported significant losses across all income categories.
Despite the overall positive trajectory, the company recognized an extraordinary loss during this period. This loss, totaling 98 million yen, stems from an impairment loss following a revaluation of the profitability of fixed assets within the gaming division. While this charge impacted the final net income figure, the underlying strength of the core mobile gaming portfolio was sufficient to offset the loss and justify the upward revision of the total fiscal outlook. These results underscore the volatility and high-growth potential of the mobile gaming segment during this specific market era.
