Financial and ESG Information
Earnings information
Full-year
FY2024/3
Sales
Consolidated net sales were up 20% year on year to 467.8 billion yen due to strong sales in Pachislot and Pachinko Machines businesses and Consumer area of Entertainment Content business mainly in Japan and Asia and the consolidation of Rovio Entertainment.
Operating Income
While Entertainment Contents saw a decrease in profit mainly due to weak performance in European Consumer area, Pachislot and Pachinko Machines business achieved significant increases, mainly due to strong sales of pachislot machines such as Smart Pachislot Hokuto No Ken. As a result, operating income were up 21% year on year to 56.8 billion yen.
Ordinary Income
While recorded commission fee and loss on investments in partnership as non-operating expenses, in addition to equity in earnings of affiliates including PARADISE SEGASAMMY, etc., interest income and gain on investments in partnerships were recorded as non-operating income were recorded. As a result, ordinary income were up 20% year on year to 59.7 billion yen.
Profit attributable to owners of parent
In the Consumer area of the Entertainment Contents Business, the Company recorded an extraordinary loss of approximately 19.2 billion yen due to the decision to implement structural reform in response to the deteriorating business environment, centered on its European studios. In addition, profit attributable to owners of parent decreased 28% from the previous fiscal year to 33.0 billion yen due to an increase in tax expenses, which were at a low level in the previous fiscal year.
Quarterly
FY2025/3
Q2
For the six months ended September 30, 2024, the sales fell from the same period in the prior year when “Smart Pachislot Hokuto No Ken” was a huge hit. Conversely, in the Entertainment Contents Business, the consumer area and the animation area showed favo rable performance. In the Pachislot and Pachinko Machines Business, sales of titles in general showed steady performance. As a result, both sales and ordinary profit made a better than expected from the beginning of the current fiscal year.
The Group recorded an extraordinary loss of approximately ¥5.9 billion in the second quarter for the fiscal year due to the sale of overseas development studio, Amplitude Studios SAS through a management buyout. In contrast, as the Group was influenced by the rebound effect from the restructuring loss occurred in the same period of prior year, and the Company recorded an extraordinary income by transfer of the shares of Phoenix Resort Co., Ltd., in the first quarter for the fiscal year, the profit attributa ble to owners of the parent resulted in an increase from the same period in the prior year.
The adjusted EBITDA, which the Company adopted as the management indicator since the current fiscal year, reached to ¥34.8 billion. This resulted in short from the same period of prior year, ¥37.5 billion, but still a better than expected from the beginnin g of the current fiscal year.
Q1
In the first quarter for the fiscal year ending March 31, 2025, the sales and profit fell from the same period in the prior year when “Smart Pachislot Hokuto No Ken” was a huge hit. The sales mainly generated by new Full Games and some repeat titles of consumer area in the Entertainment Contents Business and generated by titles in the Pachislot and Pachinko Machines Business showed steady performance. As a result, the decrease in ordinary income from the same period in the prior year was limited to ¥1.2 billion. Moreover, adjusted EBITDA, which the Company adopted as the management indicator since the current fiscal year, reached to ¥25.8 billion with exceeding that from the same period in the prior fiscal year, which is ¥24.7 billion.
In addition, the Company recorded an extraordinary income of approximately ¥8.4 billion by transfer of the shares of Phoenix Resort Co., Ltd., and the profit attributable to owners of the parent resulted in an increase from the same period in the prior year.