In 1Q FY2020/3, the Company booked net sales of ¥53.3 billion (+19.1% YoY), operating income of ¥7.1 billion (+85.8%), ordinary income of ¥6.2 billion (-13.9%), and profit attributable to owners of the parent of ¥4.1 billion (-26.3%).
I will next break down our results by segment. The Digital Entertainment segment booked net sales of ¥37.1 billion (+¥5.5 billion YoY) and operating income of ¥7.6 billion (+¥2.0 billion).
In the HD Game sub-segment, releases for game consoles included the Nintendo Switch and Xbox One versions of “FINAL FANTASY X/X-2 HD Remaster” and “FINAL FANTASY XII THE ZODIAC AGE.” These releases resulted in a YoY rise in sales and a turn slightly into the black at the operating income line.
The MMO sub-segment saw a YoY rise in net sales and operating income due to growth in the number of paying subscribers ahead of the release of an expansion pack for “FINAL FANTASY XIV.”
Games for the Smart Devices/PC Browsers sub-segment also saw a YoY rise in net sales and operating income as “Romancing SaGa Re;universe,” which had been launched in December 2018, continued to perform well.
The Amusement segment posted net sales of ¥10.8 billion (+¥1.4 billion YoY) and operating income of ¥600 million (+¥400 million). While no new machine titles were released, solid arcade operations led to the YoY rise in net sales and operating income.
The Publication segment posted net sales of ¥3.8 billion (+¥1.4 billion YoY) and operating income of ¥1.2 billion (+¥700 million). Sales in digital formats, including via the “MANGA UP!” manga application, rose sharply. Sales of printed media were also brisk, leading to the YoY rise in sales and operating income.
The Merchandising segment posted net sales of ¥1.9 billion (+Y500 million YoY) and operating income of ¥100 million (+¥20 million). The release of new merchandise based on the Group’s own intellectual property led to the YoY rise in net sales and operating income.
This concludes my overview of our financial results.