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GungHo Online Entertainment
Organization
14 documents
Documents
Report
Management Policies under New Management Structure
GungHo Online Entertainment, Inc. announces a restructured management hierarchy that separates executive oversight of game development from corporate strategy and financial governance. The new arrangement places former President Kazuki Morishita in a dedicated game‑development role while Kazuya Sakai, formerly CFO and Executive General Manager of Finance, assumes the positions of Representative Director, President, and CEO. Sakai’s mandate is to steer medium‑to‑long‑term strategy, enhance dialogue with equity markets, and strengthen corporate governance. Strategic priorities are grouped into four pillars: (1) securing a stable revenue base through accelerated title pipelines, IP monetization, and efficient event scheduling; (2) implementing company‑wide cost optimization and talent development via a revamped HR system and performance evaluation; (3) deepening collaboration with the Japanese subsidiary Gravity to optimize resource allocation for Ragnarok‑related titles; and (4) advancing capital‑market‑aligned management, including investor relations, cash‑allocation reviews, and governance enhancements. Financial policy targets a 4 % dividend‑outcome‑equity (DOE) ratio with a minimum 50 % payout, aiming for an ordinary dividend of ¥90 per share in FY2025. Shareholder returns will also include up to ¥5 billion (≈2.1 million shares) in share buybacks and the cancellation of up to 16 million treasury shares. The company maintains approximately ¥70 billion in cash and deposits—about 1.17× the combined cost of sales and SG&A—to fund five years of development, maintenance, and growth investments. Governance reforms raise the proportion of independent outside directors to 50 % and female directors to 20 %, while expanding the board from nine to eleven members. These measures collectively aim to balance growth investment with shareholder value creation in a rapidly evolving mobile‑gaming market.
GungHo Online Entertainment
Report
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