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Investor Relations

Outline of Results Briefing held on Nov 6, 2020

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Outline of Results Briefing held on Nov 6, 2020

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I am Yosuke Matsuda. I will be discussing the progress made by each of our business segments.

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The HD Games sub-segment posted an operating loss as initial sales of “Marvel’s Avengers” were lower than we had expected and unable to completely offset the amortization of the game’s development costs. In the second half of the fiscal year (“2H”), we hope to make up for slow initial sales by offering ample additional content to grow our sales.

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The MMO sub-segment is performing well.

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Next is the Games for Smart Devices/PC Browser sub-segment. “DRAGON QUEST TACT” which we launched in July, contributed to 1H earnings with an initial performance that has beaten our expectations.

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“OCTOPATH TRAVELER: Tairiku no Hasha,” which we launched in October, is off to a good start. We are looking forward to its earnings contributions in 2H.

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The Amusement segment faced harsh conditions in 1Q, as we temporarily closed our amusement facilities in Japan in order to help prevent the spread of the coronavirus. However, customer numbers began to pick up in 2Q. We are working to reshape the business based on what we think the world will look like while it is living with the coronavirus and once it has beaten it. These efforts are not limited to rethinking our fixed-cost base.

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The Publication segment continued to perform well in 2Q, and we expect a similar trend to persist in 2H.

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The Merchandising segment experienced quarterly earnings fluctuations, but these were due to the launch timing of major console titles.

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Our consolidated financial forecast for FY2021/3 is for net sales of ¥290 billion, operating income of ¥40 billion, ordinary income of ¥40 billion, and net income attributable to parent company shareholders of Y24 billion.

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We are forecasting FY2021/3 operating income of Y40 billion, as we believe we will be able to reach our medium-term target range of ¥40-50 billion. However, at ¥290 billion, our net sales forecast is slightly below our ¥300 billion medium-term target, given factors including changes to our game development timelines resulting from the COVID-19 pandemic.


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