Related Documents
Report
GungHo Business Report Vol. 42
GungHo Online Entertainment’s Vol. 42 report outlines the company’s strategic focus on expanding its two flagship intellectual properties—Puzzle & Dragons and Ragnarok—into global markets while sustaining robust financial performance. The report highlights that Puzzle & Dragons, launched in 2012, has achieved over 63 million downloads worldwide and continues to drive user engagement through frequent events, cross‑media collaborations, and a 13th‑anniversary release in May 2025. The Ragnarok franchise, managed by subsidiary Gravity Co., Ltd., has expanded from its original PC MMORPG roots to mobile and console titles, with recent releases such as Ragnarok X (PC/Android/iOS) and LUNAR Remastered Collection targeting Latin America, Southeast Asia, and other regions. Financially, consolidated net sales rose from ¥125.3 billion in 2022 to ¥103.6 billion in 2024, with operating profit increasing from ¥27.9 billion to ¥17.5 billion over the same period. Overseas sales ratio climbed from 39.3 % in 2022 to 47.7 % in 2024, reflecting successful international penetration. The company maintained a dividend payout ratio above 30 % and executed treasury‑share repurchases totaling ¥9.86 billion in 2024, underscoring a commitment to shareholder value. Methodologically, the report aggregates data from internal analytics on downloads, MAU, and revenue across more than 150 countries in 11 languages. It also references quarterly performance metrics and event‑based user activity to gauge engagement. Overall, the document presents a cohesive narrative of sustained growth through IP expansion, diversified platform presence, and disciplined financial management.
GungHo Online Entertainment
Financial
Financial Results for the First Quarter: Fiscal Year Ending March 2022
The financial overview for the first quarter of fiscal 2022 highlights a robust performance driven by new console releases and strong back‑catalogue sales. Total revenue rose 80.6 % from ¥11,363 million to ¥20,520 million, with operating profit more than doubling from ¥4,387 million to ¥9,718 million (121.5 % increase). Ordinary and net profits also surged by 105.5 % and 101.9 %, respectively, reflecting higher margins across the entertainment segment. Revenue composition shifted toward console titles, which accounted for 48.7 % of sales in the overseas market and 38.3 % domestically, supported by launches such as *Samurai Warriors 5* and remastered collections like *Ninja Gaiden: Master Collection*. Online/mobile sales grew 55.8 % in download volume, with the Romance of the Three Kingdoms series expanding into licensing‑out agreements. Non‑operating income benefited from gains on investment securities, prompting an upward revision of the half‑year earnings estimate. Geographically, Japan contributed 38.3 % of sales while overseas markets grew by 51.3 %, with North America and Europe showing mixed results—North America doubled its unit sales, whereas European units fell 26.3 %. Headcount increased by 2.5 % to 2,088 employees, and cost of goods sold rose 22.6 %, largely due to higher production for new titles. Methodologically, the report aggregates quarterly financial statements, sales data by platform and region, and download metrics from the company’s global service portfolio. The analysis underscores a strategic focus on IP licensing, back‑catalogue monetization, and digital distribution to sustain growth in the second half of fiscal 2022.
Koei Tecmo
Financial
Financial Results Briefing Session of Fiscal Year Ended December 31, 2025 [17,284KB]
GungHo Online Entertainment’s FY 2025 financial briefing outlines a strategic pivot from Japan‑centric mobile development toward global expansion, emphasizing action titles on consoles and PCs. The company reports a 64.1 % overseas net‑sales ratio in FY 2025, up from 47.7 % in 2019 and 56.2 % in 2020, reflecting intensified sales in North America and Europe through new releases such as “Let It Die: Inferno” on PlayStation 5, Steam, and Nintendo Switch. The launch of nine global titles in 2025, including the “Ragnarok” series and “Puzzle & Dragons,” is highlighted as a key growth driver, with the latter celebrating its 5 000‑day anniversary and hosting cross‑platform events to boost user activity. Financially, consolidated net sales fell by 1.3 % YoY to ¥125.3 billion, driven mainly by declines in mobile titles and “Ragnarok”‑related revenue under subsidiary Gravity. Operating profit contracted by 9.3 % YoY to ¥276 million, as SG&A expenses rose due to increased advertising spend and personnel costs following the full acquisition of Alim in December 2024. Non‑consolidated results remained flat, but mobile sales slipped and Gravity’s “Ragnarok” titles underperformed, contributing to the consolidated loss. The briefing covers a global geographic scope—North America, Europe, Latin America, and Asia—with a 2025 focus on launching titles in over 150 countries. Methodologically, data derive from consolidated financial statements and quarterly performance metrics, with a clear emphasis on aligning product development with international market demand.
GungHo Online Entertainment
Financial
1Q26 Pearl Abyss Earnings Letter
Pearl Abyss achieved a record‑breaking first quarter of 2026, driven primarily by the launch of Crimson Desert. Operating revenue surged to KRW 328.5 billion, a 419.8 % year‑over‑year increase and 382.4 % quarter‑on‑quarter rise, while operating profit climbed to KRW 212.1 billion and net profit reached KRW 170.0 billion, supported by favorable foreign‑exchange gains and efficient marketing spend. Crimson Desert dominated sales, generating KRW 266.5 billion and accounting for 81 % of total revenue, with a balanced split between PC and console. The title achieved rapid early‑stage sales milestones—2 million copies on day one, 5 million within 26 days—and maintained strong momentum through continuous content updates. Black Desert contributed KRW 61.6 billion, maintaining stable quarterly performance through content optimization and seasonal events across PC, console, and mobile platforms. Operating expenses rose 72.7 % QoQ to KRW 116.4 billion, largely due to increased commissions (193.1 % QoQ) and advertising spend (151.6 % QoQ) linked to Crimson Desert’s launch, while labor costs increased 28.9 % QoQ because of temporary hires for the new IP. The company projects 2026 operating revenue between KRW 879.0–975.4 billion, with operating profit expected to reach KRW 487.6–572.6 billion and margin improving to 55.5–58.7 %. Planned releases include DokeV (pre‑production) and Plan 8 (conceptualization), aiming to sustain a new title every 2–3 years. A subsidiary sale of Fenris Creations to its management was completed in May 2026, with future collaboration opportunities retained.
Pearl AbyssMay 2026