Captain Tsubasa: Dream Team

KLab FY2019 Financial Results

KLab’s fiscal year 2019 performance reflects a period of significant transition characterized by a decline in annual profitability and a strategic pivot toward global market expansion.

• KLab’s annual operating profit plummeted 66.5% to 1,673 million yen in FY2019, despite generating over 10 billion yen in overseas revenue.
• The company reported a Q4 operating loss of 37 million yen, driven by a 1,300 million yen impairment loss on 'Magatsu Wahrheit' and heavy promotional spending.
• KLab is pivoting its strategy to focus on core competencies in action RPGs, sports simulations, and rhythm games while diversifying into casual games, subscriptions, and in-game advertising.

Summary of Financial Results for Fiscal Year Ending December 31, 2019 (Japanese GAAP) (Consolidated)

The fiscal year ending December 31, 2019, was characterized by a contraction in profitability for KLab Inc. despite the continued global strength of its core intellectual properties.

• KLab Inc. experienced a significant profitability contraction in fiscal year 2019, with net profit falling 85.1% to 383 million yen and operating income dropping from 5.0 billion yen to 1.7 billion yen.
• Total revenue for the year declined by 4.8% to 31.1 billion yen, primarily due to the natural lifecycle decline of older titles and high operational expenses.
• A substantial 1.3 billion yen impairment loss related to the title 'Magatsu Wahrheit' significantly impacted the company's bottom line.

KLab Q3 2019 Financial Results

KLab’s financial results for the third quarter of 2019 reflect a period of contraction, characterized by a 9.3% quarter-over-quarter decline in consolidated revenue to 7,565 million yen and a 55.5% decrease in operating profit to 406 million yen.

• KLab experienced a significant Q3 2019 downturn, with consolidated revenue falling 9.3% quarter-over-quarter to 7,565 million yen and operating profit dropping 55.5% to 406 million yen.
• The company revised its full-year 2019 guidance downward to 31,500 million yen in revenue and 1,750 million yen in operating profit due to the underperformance of Magatsu Wahrheit and the delay of Tales of Crestoria.
• Financial results were negatively impacted by the underperformance of key titles including Love Live! School Idol Festival, Captain Tsubasa: Dream Team, and Magatsu Wahrheit, though BLEACH Brave Souls maintained solid growth.

Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2019

This financial report details the consolidated operating performance of KLab Inc. for the first nine months of fiscal year 2019, covering the period from January 1 to September 30, 2019.

• KLab Inc. experienced a 10.3% year-over-year revenue decline to 22.37 billion yen for the first nine months of 2019, driven by underperforming legacy titles like Love Live! School Idol Festival and Captain Tsubasa: Dream Team.
• Operating income plummeted 57.1% to 1.71 billion yen, while profit attributable to owners of the parent fell 53.7% to 1.21 billion yen.
• Profitability was compressed by a 1.0% increase in cost of sales, attributed to rising labor, outsourcing, and depreciation expenses linked to new game development.

KLab 2019 Second Quarter Financial Results

KLab experienced significant financial growth during the second quarter of 2019, characterized by a 29.0 percent quarter-over-quarter revenue increase to 8,343 million yen.

• KLab reported a 29.0% quarter-over-quarter revenue increase to 8,343 million yen for Q2 2019.
• Operating profit grew by 133.3% to 913 million yen, driven by the performance of core titles BLEACH Brave Souls, Captain Tsubasa: Dream Team, and the new release Magatsu Wahrheit.
• The company adjusted its full-year 2019 revenue guidance to a range of 31,000 to 37,000 million yen while maintaining its existing operating profit projections.

KLab FY2018 Financial Results

KLab achieved record-high annual revenue and operating profit for the 2018 fiscal year, marking a period of significant financial growth driven by the robust performance of established mobile titles.

Summary of Financial Results for Fiscal Year Ending December 31, 2018 (Japanese GAAP) (Consolidated)

KLab Inc. achieved record-high consolidated revenue of 32.67 billion yen for the fiscal year ending December 31, 2018, representing a 22.0% year-over-year increase.

• KLab Inc. achieved record-high consolidated revenue of 32.67 billion yen in 2018, a 22.0% year-over-year increase driven by the success of BLEACH Brave Souls and Captain Tsubasa: Dream Team.
• Profit attributable to owners fell 17.8% to 2.57 billion yen due to rising royalty payments, increased promotional spending, and a 958 million yen extraordinary loss from software impairment and asset disposal.
• The company reported an operating profit of 4.99 billion yen, while net income per share declined from 84.89 yen to 69.03 yen.

KLab Q3 2018 Financial Results

KLab’s financial results for the third quarter of 2018 demonstrate a period of record-breaking growth driven by the successful performance of its mobile game portfolio.

• KLab achieved record quarterly revenue of 8,949 million yen in Q3 2018, an 11.0% increase over the previous quarter.
• Operating profit grew 11.9% quarter-over-quarter to 1,396 million yen, the second-highest in company history.
• International revenue exceeded 3 billion yen for the first time, bolstered by the localization of Captain Tsubasa: Dream Team into Arabic and Brazilian Portuguese.

Summary of Financial Results for Third Quarter of Fiscal Year Ending December 31, 2018 (Japanese GAAP)

KLab Inc. reported significant growth in its consolidated financial results for the first nine months of the fiscal year ending December 31, 2018.

• KLab Inc. reported revenue of 24.9 billion yen for the first nine months of 2018, marking a 36.7% year-over-year increase driven by titles like Captain Tsubasa: Dream Team, BLEACH Brave Souls, and YU☆YU☆HAKUSHO 100% Maji Battle.
• Operating income grew 24.4% to 3.9 billion yen, while profit attributable to owners of the parent rose by a more modest 1.6% to 2.6 billion yen.
• Full-year 2018 forecasts were revised to 31.5 billion yen in revenue and 4.0 billion yen in operating income, with the company projecting a year-over-year decline in annual profits due to the volatility of new game launches.

KLab Q2 2018 Financial Results

KLab’s financial results for the second quarter of 2018 demonstrate a period of sustained high revenue alongside strategic investments in global expansion and game development.

• KLab recorded 8,059 million yen in Q2 2018 revenue, a 1.7% increase quarter-over-quarter and the second-highest quarterly revenue in company history.
• Operating profit fell 7.2% quarter-over-quarter to 1,247 million yen, primarily due to increased spending on outsourcing, subcontracting, and international marketing.
• The mobile title Captain Tsubasa: Dream Team was the primary performance driver, generating approximately 3 billion yen in overseas revenue.

Summary of Financial Results for First Half of Fiscal Year Ending December 31, 2018

KLab Inc. reported significant growth in its consolidated financial results for the first half of the fiscal year ending December 31, 2018, covering the period from January 1 to June 30, 2018.

• KLab Inc. reported 15.98 billion yen in revenue for H1 2018, representing a 46.3% increase year-over-year driven primarily by the mobile title Captain Tsubasa: Dream Team.
• Operating income grew 31.7% to 2.59 billion yen, while profit attributable to owners of the parent rose 17.8% to 1.71 billion yen.
• The company projects full-year 2018 revenue between 30.0 billion and 33.0 billion yen, though it anticipates a potential decline in annual operating income, forecasted between 2.75 billion and 4.25 billion yen.

KLab Q1 2018 Financial Results

KLab’s financial results for the first quarter of 2018 reflect a period of moderated performance following the previous quarter’s peak.