Investment
Report
Consolidated Financial Results for FY 2025: Supplementary Material
GungHo Online Entertainment reported a decline in consolidated net sales for FY 2025, falling 10.0% to ¥93,242 million from ¥103,600 million in FY 2024. The drop was driven primarily by a slowdown in non‑consolidated sales of its flagship title “Puzzle & Dragons” and fewer high‑profile collaboration events, while subsidiary Gravity Co., Ltd. offset the decline with growth in Southeast Asian and Chinese markets through new “Ragnarok” releases. Gross profit contracted 20.8% to ¥42,328 million, with the margin falling to 45.4%, largely due to a lower sales mix from Gravity and higher cost of sales. Operating profit suffered sharply, decreasing 71.1% to ¥5,056 million as SG&A expenses rose—particularly personnel costs following the full acquisition of Alim Co., Ltd.—and cost‑of‑sales ratios increased. Operating profit margin dropped to 5.4%. Ordinary profit and pre‑tax earnings fell by more than two‑thirds, reaching ¥6,780 million and ¥6,576 million respectively. The attributable profit to owners of parent fell 87.4% to ¥1,407 million. Quarterly results mirrored the annual trend: operating profit turned negative in Q4 (¥811 million loss) after a strong first‑quarter performance, with net sales declining 3.8% quarter‑on‑quarter to ¥19,646 million. SG&A and salary expenses rose in the fourth quarter due to bonus payments, while advertising spend decreased slightly. The company’s balance sheet remained solid, with cash and deposits around ¥130 billion and total assets near ¥170 billion. Overall, FY 2025 reflected a challenging environment for core titles and rising operating costs, prompting a strategic focus on expanding the user base through cross‑media initiatives and new title launches.
GungHo Online Entertainment
Report
Notice Concerning Non-Operating Income and Extraordinary Loss: Japan
KLab Inc. disclosed a net non‑operating income of 288 million yen for the consolidated fourth quarter of its December 2014 fiscal year, driven largely by a 231 million yen foreign‑exchange gain from currency valuation at quarter‑end. The company also reported an extraordinary loss of 670 million yen, primarily attributable to a 607 million yen impairment charge on software assets related to its gaming operations. These figures represent the company’s first quarterly disclosure of such items for the year, indicating a significant impact on its overall profitability. The announcement clarifies that the non‑operating income and extraordinary loss will affect the company’s full‑year earnings forecasts for the 2014 fiscal period. KLab commits to providing any additional information required under Tokyo Stock Exchange disclosure standards promptly, ensuring transparency for investors and regulators. The notice is limited to the Japanese market, covering a single fiscal year (January 1–December 31, 2014) and focusing on the gaming segment of KLab’s operations. No survey or external data sources are cited; the figures derive from internal financial statements and accounting adjustments made during the reporting period.
KLab
