FinancialKLab
Summary of Financial Results for First Three Quarters of Fiscal Year Ending December 2014
13 Nov 201412 pages~15 min full read
KLab Inc. achieved a significant financial turnaround in the first nine months of 2014, reporting 1.89 billion yen in operating income and 1.29 billion yen in net income, compared to losses in the same period of 2013.
See it on page 1Consolidated revenue for the first three quarters of 2014 reached 15.94 billion yen, representing a 46.4% year-over-year increase.
See it on page 4The mobile game segment was the primary driver of growth, contributing 15.89 billion yen in revenue, led by the strong performance of 'Love Live! School Idol Festival' and 'Celestial Craft Fleet'.
See it on page 4The company's financial stability improved substantially, with the equity ratio rising from 45.5% at the end of 2013 to 73.6% by September 30, 2014.
See it on page 10Full-year forecasts for 2014 project 21.94 billion yen in total revenue and 1.51 billion yen in net income.
See it on page 5Management plans a 1 billion yen investment in television advertising during the fourth quarter, which is expected to impact net profit despite steady revenue projections.
See it on page 5KLab Inc. reported record-breaking financial performance for the first three quarters of the fiscal year ending December 2014, marking a significant turnaround from the losses recorded in the previous year. Consolidated revenue reached 15.94 billion yen, a 46.4% increase over the same period in 2013. This growth translated into an operating income of 1.89 billion yen and a net income of 1.29 billion yen, contrasting sharply with the 1.07 billion yen operating loss and 770 million yen net loss reported for the first three quarters of 2013.
The surge in revenue was primarily driven by the strong performance of mobile titles, specifically Love Live! School Idol Festival and Celestial Craft Fleet. While the company saw increased expenditures in royalties, commissions, and strategic advertising, these were offset by high sales volumes. The game business remained the dominant segment, contributing 15.89 billion yen of the total revenue. Financial stability also improved significantly, with the equity ratio rising from 45.5% at the end of 2013 to 73.6% by September 30, 2014, supported by increases in capital stock and surplus following the exercise of new stock subscriptions.
The scope of this analysis covers the consolidated performance of the Japanese-listed entity from January 1, 2014, to September 30, 2014. Full-year forecasts project total revenue of 21.94 billion yen and a net income of 1.51 billion yen. Management expects fourth-quarter revenue to remain steady, though net profit may be impacted by a planned 1 billion yen investment in television advertising scheduled for the year-end period. The methodology follows Japanese GAAP, noting that year-on-year comparisons are affected by a previous change in the fiscal year-end date.
