3Q FY2023 Presentation Material

The third quarter of fiscal year 2023 represents a transitional period characterized by a significant contraction in profitability despite stable consolidated sales of 171.7 billion yen. This financial performance was primarily impacted by the Game business, which experienced a 27% year-over-year decline in sales and a shift into operating losses as flagship titles like Uma Musume Pretty Derby moved into a post-peak stability phase. These headwinds necessitated a downward revision of the full-year operating profit forecast to 25 billion yen, signaling that the current fiscal year serves as an earnings floor for the organization.

In contrast to the volatility in gaming, the Internet Advertisement and Media segments demonstrated resilience and growth. The advertising division achieved record quarterly sales exceeding 100 billion yen, while the Media segment, anchored by ABEMA, narrowed its operating losses through a 13.1% increase in sales. ABEMA reached a milestone of over 20 million weekly active users, supported by a 1.3x surge in WINTICKET transaction volumes. Strategic expansion into the anime musical space via the acquisition of Nelke Planning further underscores an intent to diversify content revenue streams and strengthen the broader media ecosystem.

Looking toward fiscal year 2024 and beyond, the strategic focus shifts toward a recovery phase driven by technological innovation and a robust product pipeline. Investments in generative AI, including the development of a proprietary Japanese Large Language Model, are intended to enhance operational efficiency and digital transformation. Furthermore, the upcoming release of high-profile titles such as Final Fantasy VII Ever Crisis and Jujutsu Kaisen Phantom Parade is expected to revitalize the Game business. By leveraging talent management and global expansion initiatives, the group aims to return to a trajectory of sustainable earnings growth.