KLab

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99 documents

Documents

Summary of Financial Results for Second Quarter of Fiscal Year Ended December 31, 2022

KLab Inc. reports consolidated financial results for the first half of fiscal year 2022, covering the period from January 1 to June 30, 2022. The primary purpose of the disclosure is to provide a comprehensive overview of the company’s financial health, operating performance, and strategic adjustments under Japanese GAAP. The scope focuses on the Japanese mobile gaming market and related research and consulting segments. Financial data indicates a challenging period characterized by a significant decline in revenue, which fell 32.3% year-over-year to 8,357 million yen. Despite this contraction, the company narrowed its operating loss to 446 million yen compared to a loss of 842 million yen in the same period of the previous year. Ordinary income turned positive at 111 million yen, largely bolstered by 465 million yen in foreign exchange gains. However, the company recorded a net loss attributable to owners of the parent of 342 million yen, impacted by extraordinary losses including a 410 million yen impairment loss on software within the Game Business segment. Methodologically, the results reflect the first-time application of the Accounting Standard for Revenue Recognition. This change shifted revenue recognition for in-game currency from the time of exchange to an estimated period of use, resulting in a 53 million yen decrease in reported revenue for the period. The consolidated balance sheet shows total assets of 19,296 million yen and a solid equity ratio of 64.1%. Looking ahead, the company maintains a policy of non-disclosure regarding full-year forecasts due to the volatility of the mobile gaming industry. Significant subsequent events include the issuance of the 18th Stock Acquisition Rights to Morgan Stanley MUFG Securities to procure approximately 5.1 billion yen and the establishment of a 4 billion yen credit line with MUFG Bank to ensure future liquidity and financial stability.

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KLabAug 2022

Financial

Summary of Financial Results for Fiscal Year Ended December 31, 2021 (Japanese GAAP)

KLab Inc. experienced a significant financial downturn during the fiscal year ended December 31, 2021, characterized by a sharp transition from profitability to substantial losses. Revenue fell by 29.6% to ¥23.9 billion, down from ¥33.9 billion the previous year. This decline was primarily driven by the underperformance of existing titles, most notably Love Live! School Idol Festival ALL STARS, which faced intensified market competition. The company shifted from a ¥2.1 billion operating profit in 2020 to a ¥1.1 billion operating loss, while the net loss attributable to owners reached ¥3.47 billion. This volatility resulted in a net loss of ¥90.38 per share, a stark reversal from the ¥20.08 per share profit recorded in the prior fiscal year. The core Game Business segment saw its profit margin erode by over 60%, ending at ¥2.57 billion. Financial stability was further impacted by ¥1.68 billion in extraordinary impairment losses on software assets and negative operating cash flows. Consequently, total net assets decreased from ¥16.58 billion to ¥12.81 billion, and cash and cash equivalents plummeted by ¥4.19 billion to end the period at ¥3.82 billion. These figures reflect both the high costs of intangible asset development and the diminishing returns from the current mobile gaming portfolio within the Japanese market. Looking forward, the outlook remains cautious as earnings forecasts for 2022 have been withheld. This decision stems from high levels of market volatility and uncertainty regarding the release schedule of a major collaborative project with Electronic Arts. While the company continues to focus on its game business, the depletion of cash reserves and the significant drop in net assets per share highlight a period of contraction and strategic transition. Management remains focused on navigating these headwinds through upcoming pipeline developments, though the immediate financial impact of these initiatives remains difficult to quantify.

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KLabFeb 2022

Financial

Summary of Financial Results for Third Quarter of Fiscal Year Ended December 31, 2021

KLab Inc. reported a significant downturn in financial performance for the first nine months of the fiscal year ended December 31, 2021. Consolidated revenue fell by 29.0% year-over-year to 18.7 billion yen, resulting in an operating loss of 729 million yen and a net loss attributable to owners of the parent of 1.76 billion yen. This represents a sharp reversal from the same period in 2020, which saw 26.3 billion yen in revenue and 855 million yen in profit. The decline is primarily attributed to the core Game Business segment, where revenue dropped from 26.1 billion yen to 18.4 billion yen. Profitability was further impacted by a substantial increase in extraordinary losses, specifically impairment losses, which rose from 498 million yen in the previous year to 1.54 billion yen. While selling, general, and administrative expenses were reduced by approximately 25% to 2.7 billion yen, these savings were insufficient to offset the contraction in gross profit. Geographically focused on the Japanese market but operating globally, the company’s balance sheet shows total assets decreased to 20.8 billion yen from 23.4 billion yen at the end of 2020. Despite the losses, the equity ratio remained stable at 70.6%. The full-year forecast for 2021 anticipates continued challenges, with projected annual revenue of 24.0 billion yen and a net loss of 2.3 billion yen. No dividends were paid or forecasted for the fiscal year. The results were prepared under Japanese GAAP and include data from January 1 to September 30, 2021.

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KLabNov 2021

Financial

Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending December 31, 2021: Japanese GAAP

KLab Inc. reported a significant downturn in financial performance for the first half of the fiscal year ending December 31, 2021. Revenue fell by 22.6% year-over-year to 12.3 billion yen, resulting in an operating loss of 842 million yen and a net loss attributable to owners of the parent of 1.7 billion yen. This represents a sharp reversal from the same period in 2020, which saw a modest profit. The decline was primarily driven by a contraction in the core game business, where revenue dropped from 15.8 billion yen to 12.1 billion yen. The financial results were further impacted by substantial extraordinary losses, specifically a 1.54 billion yen impairment loss. This follows a previous impairment of goodwill in the research and consulting segment during the prior year. Consequently, the company’s total assets decreased from 23.5 billion yen at the end of 2020 to 21.0 billion yen by June 30, 2021. Despite these losses, the company maintained a stable equity ratio of 70.1%. Geographically focused on the Japanese market and listed on the Tokyo Stock Exchange, the company revised its full-year forecasts to reflect ongoing volatility. Projections for the fiscal year end suggest a wide range of potential outcomes, with revenue expected between 27 billion and 32 billion yen and net results ranging from a 1.3 billion yen loss to a 200 million yen profit. No dividends were paid or forecasted for the period. The data was prepared in accordance with Japanese GAAP and covers the consolidated performance of the parent company and its subsidiaries.

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KLabAug 2021

Financial

Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2021

KLab Inc. reported a significant downturn in financial performance for the first quarter of the fiscal year ending December 31, 2021. Revenue fell 13.8% year-over-year to 6.39 billion yen, resulting in an operating loss of 505 million yen compared to a small profit in the previous year. The company’s bottom line was further impacted by a substantial extraordinary loss of 1.54 billion yen due to impairment losses on software within the Game Business segment. Consequently, the loss attributable to owners of the parent widened to 1.38 billion yen, or 35.96 yen per share. The report covers the Japanese mobile gaming market for the three-month period from January 1 to March 31, 2021. Despite the quarterly losses, the company maintained a solid equity ratio of 72.0%, though total assets decreased from 23.4 billion yen to 21.1 billion yen. Management revised its full-year forecasts to reflect a range of potential outcomes, projecting annual revenue between 27 billion and 32 billion yen, with results potentially varying from a net loss of 1.3 billion yen to a modest profit of 200 million yen. Strategic shifts highlighted include an aggressive expansion into the casual gaming sector to achieve sustainable mid-to-long-term growth. This strategy was underscored by the subsequent acquisition of GlobalGear Co., Ltd. in April 2021, a developer known for high-volume title releases and hit games with over 10 million downloads. Additionally, the board authorized a share repurchase program of up to 900,000 shares to improve capital efficiency and shareholder value. These results were prepared in accordance with Japanese GAAP and reflect consolidated performance across the company's core gaming and research segments.

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KLabMay 2021

Financial

Summary of Financial Results for Fiscal Year Ending December 31, 2020 (Japanese GAAP) (Consolidated)

KLab Inc. achieved a resilient financial performance for the fiscal year ending December 31, 2020, characterized by a 9.1% year-on-year revenue increase to 33.95 billion yen. This growth was primarily driven by the sustained success of core intellectual properties within the Game Business segment, including titles such as BLEACH Brave Souls, Captain Tsubasa: Dream Team, and Love Live! School Idol Festival ALL STARS. Strategic expansions into the Steam platform and broader Asian markets allowed legacy titles to reach significant milestones, such as 50 million downloads, while the implementation of subscription models and in-game advertising further diversified the revenue base. Profitability metrics showed significant improvement, with operating income rising 28.4% to 2.15 billion yen. This increase was largely facilitated by a reduction in selling, general, and administrative expenses, specifically through optimized public relations and promotional spending. Net income attributable to owners of the parent doubled year-over-year to 767 million yen, effectively increasing earnings per share from 10.20 yen to 20.08 yen. These gains occurred despite external pressures, including a substantial foreign exchange loss of 670.8 million yen and costs associated with goodwill amortization. The company concluded the fiscal year with a strengthened liquidity position, reporting 8.01 billion yen in cash and equivalents. This financial stability was supported by robust operating cash flows of 3.98 billion yen and successful financing activities. Despite the global economic volatility introduced by the COVID-19 pandemic, the transition to telecommuting and multi-platform development strategies ensured operational continuity. Looking forward, revenue for the 2021 fiscal year is projected to remain stable between 33 and 35 billion yen, reflecting a conservative yet steady outlook for the Japanese and international mobile gaming markets.

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KLabFeb 2021

Financial

Consolidated Financial Results for the First Half of Fiscal Year 2020

KLab Inc. reported consolidated financial results for the first half of fiscal year 2020, covering the period from January 1 to June 30, 2020. The data reveals a divergence between top-line growth and bottom-line profitability. Revenue increased by 7.7% year-over-year to 15.9 billion yen, driven primarily by the core Game Business segment, which accounted for 15.8 billion yen of total turnover. Despite this growth, operating income fell by 42.2% to 753 million yen, and profit attributable to owners of the parent plummeted by 98% to just 16 million yen. The sharp decline in profitability is attributed to rising costs and significant non-operating and extraordinary items. The cost of sales rose from 10.9 billion yen to 12.8 billion yen, while ordinary income was pressured by 243 million yen in foreign exchange losses. Furthermore, the company recorded a substantial extraordinary impairment loss of 498.8 million yen related to goodwill in its Research and Consulting Business, after determining that the segment lacked its initially anticipated profitability. Geographically focused on the Japanese market but with international exposure, the company maintained a stable equity ratio of 66.2% with total assets valued at 23.3 billion yen. Looking ahead, the full-year forecast for 2020 suggests significant volatility, with revenue projected between 33 billion and 36 billion yen. While the company anticipates a potential recovery in net income, the wide forecast range reflects ongoing uncertainty in the operating environment. No dividends were paid during the period, consistent with previous fiscal cycles.

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KLabAug 2020

Financial

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. Total revenue declined by 4.8% to 31.1 billion yen, while net profit experienced a sharp 85.1% drop, falling to 383 million yen. This downturn was primarily driven by rising labor costs, increased depreciation, and a substantial 1.3 billion yen impairment loss associated with the title Magatsu Wahrheit. While established games such as Captain Tsubasa: Dream Team and BLEACH Brave Souls maintained strong international performance, the natural decline of older titles and high operational expenses significantly compressed operating income from 5.0 billion yen to 1.7 billion yen. The Game Business remains the central pillar of the organization, accounting for nearly 99% of total revenue. Despite the decline in net income per share from 69.03 yen to 10.20 yen, the corporate balance sheet showed resilience. Total assets grew to 23.6 billion yen, and net assets increased to 17.2 billion yen, supported by higher retained earnings and the strategic acquisition of 2.3 billion yen in long-term debt. This influx of capital helped stabilize cash and equivalents at 6.7 billion yen, providing a buffer against the year’s reduced operating cash flows. Looking toward the 2020 fiscal year, revenue is projected to recover to a range between 35 and 40 billion yen. This forecast reflects an aggressive growth strategy dependent on the successful lifecycle management of existing titles and the performance of new releases. While the 2019 results highlight the volatility inherent in the mobile gaming sector and the impact of high development costs on margins, the expansion of software assets and a strengthened capital base suggest a focus on long-term scaling within the Japanese and global markets.

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KLabFeb 2020

Financial

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. The data reveals a period of contraction for the Japanese mobile gaming company, with revenue declining 10.3% year-over-year to 22.37 billion yen. The downturn was primarily driven by diminishing returns from established titles such as Love Live! School Idol Festival and Captain Tsubasa: Dream Team. While new releases like Magatsu Wahrheit and Love Live! School Idol Festival ALL STARS contributed new revenue streams, they were insufficient to offset the decline of legacy products. Profitability metrics saw a more significant decline during this period. Operating income fell by 57.1% to 1.71 billion yen, while profit attributable to owners of the parent dropped 53.7% to 1.21 billion yen. This compression was caused by a combination of lower top-line revenue and rising costs of sales, which increased by 1.0% due to higher labor, outsourcing, and depreciation expenses associated with new game development. Conversely, selling, general, and administrative expenses decreased by 10.3%, largely due to reduced advertising spend. The financial status remains stable with an equity ratio of 69.2% and total assets of 23.4 billion yen, an increase driven by higher accounts receivable and software assets. Looking forward, the company revised its full-year 2019 forecasts to a definite figure rather than a range, projecting total revenue of 31.5 billion yen and operating income of 1.75 billion yen. The methodology follows Japanese GAAP, and the scope includes the core game business alongside smaller segments in research, consulting, and venture capital.

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KLabNov 2019

Financial

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

KLab Inc. reported a significant decline in financial performance for the first quarter of the fiscal year ending December 31, 2019, covering the period from January 1 to March 31, 2019. Consolidated revenue fell 18.4% year-over-year to 6.47 billion yen, primarily driven by declining revenue from the title Love Live! School Idol Festival. This contraction in the top line led to sharper decreases in profitability: operating income dropped 70.9% to 391 million yen, and profit attributable to owners of the parent fell 63.2% to 296 million yen. The company’s cost of sales and selling, general, and administrative expenses also decreased by 8.3% and 5.2% respectively, largely due to lower royalties, commissions, and reduced advertising spend. Despite the drop in quarterly earnings, total assets increased by 2.3 billion yen to 21.5 billion yen, fueled by higher operating investment securities and software in progress. Net assets rose to 16.0 billion yen, influenced by the inclusion of non-controlling interests from a newly consolidated subsidiary. Geographically focused on the Japanese market with global reach through its mobile titles, KLab’s operations are divided between its core Game Business and Other Businesses, which now includes a venture capital segment following the consolidation of KVP Inc. and its associated funds. Looking ahead, the company maintains a range-based forecast for the full fiscal year 2019, projecting revenue between 32 billion and 40 billion yen. Management noted that while financial forecasting has become more accurate, the inherent volatility of new game success remains a critical factor in achieving these targets.

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KLabMay 2019

Financial

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. This growth was primarily driven by the strong performance of key titles within the Game Business segment, specifically BLEACH Brave Souls and Captain Tsubasa: Dream Team. While operating profit rose to 4.99 billion yen, profit attributable to owners fell 17.8% to 2.57 billion yen. This divergence between top-line growth and net profitability resulted from rising royalty payments, increased promotional expenditures, and a 958 million yen extraordinary loss stemming from software impairment and asset disposal, including costs related to the title Lapis Re:LiGHTs. The financial position remains stable, characterized by an equity ratio that improved to 75.1% and total assets valued at 19.2 billion yen. Despite the increase in total net assets to 14.47 billion yen—supported by higher retained earnings and the issuance of new shares—cash and cash equivalents decreased by approximately 2.06 billion yen. This reduction was largely attributed to higher income tax payments and intensified investment in intangible fixed assets. Consequently, net income per share declined from 84.89 yen to 69.03 yen, and the company elected not to issue a dividend for the fiscal year. Looking toward the 2019 fiscal year, projections for revenue are set within a range of 32 billion to 40 billion yen. This forecast reflects a cautious outlook where future performance is heavily contingent upon the successful launch and monetization of new titles. While the Game Business remains the sole reportable segment and the primary engine of growth, the transition from record revenue to lower net income highlights the impact of rising operational costs and strategic asset write-downs on the bottom line.

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KLabFeb 2019

Financial

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. Revenue reached 24.9 billion yen, a 36.7% increase over the same period in 2017. This growth was primarily driven by the strong performance of Captain Tsubasa: Dream Team, anniversary campaigns for BLEACH Brave Souls, and the successful August 2018 launch of YU☆YU☆HAKUSHO 100% Maji Battle. Operating income rose 24.4% to 3.9 billion yen, while profit attributable to owners of the parent saw a modest increase of 1.6% to 2.6 billion yen. The financial position remains stable with total assets of 19.9 billion yen and an equity ratio of 73.0%. While current assets decreased due to lower cash holdings, non-current assets rose significantly, driven by a 3.4 billion yen investment in software in progress. Expenditures also increased, with cost of sales rising 42.6% due to higher royalties and commissions, and selling, general, and administrative expenses increasing 27.8% following higher advertising spend. Geographically focused on the Japanese market with global reach through its mobile titles, KLab revised its full-year 2018 forecasts to 31.5 billion yen in revenue and 4.0 billion yen in operating income. While revenue is expected to grow 17.6% year-over-year, the company anticipates a decline in annual profits compared to 2017, citing the volatility of new title success. The methodology follows Japanese GAAP, and the results include segment data for the core Game Business and secondary research and consulting operations. Notable corporate actions during the period included the retirement of 870,000 shares of treasury stock and the implementation of an employee stock ownership plan.

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KLabNov 2018