GUNGHO ONLINE ENTERTAINMENT, INC. Financial Results for the 2nd Quarter of Fiscal Year Ending December 31, 2022
[Japanese GAAP] (Consolidated)
August 10, 2022
Name of listed company: GungHo Online Entertainment, Inc.
Stock exchange listing: Tokyo Stock Exchange
Code number: 3765
URL: https://www.gungho.co.jp/
Representative: Kazuki Morishita, Representative Director & President, CEO
Contact: Kazuya Sakai, Director & CFO, Executive General Manager of Finance Accounting Division
TEL: 03-6895-1650
Quarterly securities report issuing date: August 10, 2022
Dividend payment date: -
Supplemental information for quarterly financial statements: Yes
Quarterly financial results briefing session: Yes (For institutional investors and analysts)
(Amounts are rounded off to the nearest million yen)
1. Consolidated financial results for the 2nd quarter of fiscal year ending December 31, 2022 (January 1, 2022 through
June 30, 2022) | ||||||||||||||||
(1) Consolidated operating results | (Percentages indicate the changes from previous year) | |||||||||||||||
Net sales | Operating profit | Ordinary profit | Quarterly net profit | |||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||||||
Six months ended | 46,635 | -8.6 | 13,242 | -23.1 | 14,403 | -18.5 | 8,684 | -34.6 | ||||||||
June 30, 2022 | ||||||||||||||||
Six months ended | 51,036 | 21.0 | 17,225 | 39.5 | 17,682 | 41.7 | 13,278 | 66.4 | ||||||||
June 30, 2021 | ||||||||||||||||
(Note) Comprehensive | Six months ended | 11,585 millions of yen | Six months ended | 15,213 millions of yen | ||||||||||||
income | June 30, 2021 | (-23.8%) | June 30, 2021 | (84.3%) | ||||||||||||
Quarterly net profit per | Diluted quarterly net | |||||||||||||||
share | profit per share | |||||||||||||||
Yen | Yen | |||||||||||||||
Six months ended | 138.73 | 137.82 | ||||||||||||||
June 30, 2022 | ||||||||||||||||
Six months ended | 195.67 | 194.50 | ||||||||||||||
June 30, 2021 | ||||||||||||||||
(2) Consolidated financial position | ||||||||||||||||
Total assets | Net assets | Shareholders' equity | ||||||||||||||
ratio | ||||||||||||||||
Millions of yen | Millions of yen | % | ||||||||||||||
Six months ended | 136,626 | 120,446 | 78.2 | |||||||||||||
June 30, 2022 | ||||||||||||||||
Fiscal year ended | 134,930 | 118,672 | 79.6 | |||||||||||||
December 31, 2021 | ||||||||||||||||
(Note) Shareholder's | Six months ended | 106,878 millions of yen | Fiscal year ended | 107,360 millions of yen | ||||||||||||
equity | June 30, 2022 | December 31, 2021 |
2. Dividends
Dividends per share | ||||||
1st quarter | 2nd quarter | 3rd quarter | 4th quarter | Total | ||
Yen | Yen | Yen | Yen | Yen | ||
Fiscal year | ended | ― | 0.00 | ― | 60.00 | 60.00 |
December 31, 2021 | ||||||
Fiscal year | ending | ― | 0.00 | |||
December 31, 2022 | ||||||
Fiscal year ending | ||||||
December 31, 2022 | ― | ― | ― | |||
(Forecast) | ||||||
(Note1) Revision of forecasts for dividends most recently announced: No
(Note2) Breakdown of year-end dividend for the fiscal year ended December 31, 2021: Ordinary dividend 30.00 yen Commemorative dividend 30.00 yen
(Note3) The company has decided to pay no interim dividend for the Q2 period at the Board of Directors held on August 10, 2022. Dividend forecasts for the fiscal year ending December 31, 2022 have yet to be determined.
3. Consolidated Earnings Forecast for the Fiscal Year Ending December 31, 2022 (From January 1, 2022 to December 31, 2022)
The GungHo Group engages in the content business that is highly novel in nature and is subject to facing sudden, short- term changes in the operating environment. Since this makes it difficult to calculate proper and rational earnings forecasts, the Company adopts the policy of providing timely disclosure of financial results and summary of operations on a quarterly basis while refraining from disclosing its full-year consolidated earnings forecast.
*Notes | |
(1) Changes in significant subsidiaries during the period | : No |
- Adoption of any particular accounting methods for the preparation of quarterly : No consolidated financial statements
- Changes in accounting policies, changes in accounting estimates and restatements
1) | Changes in accounting policies due to revisions of accounting standards | : Yes | ||||
2) | Changes in accounting policies due to reasons other than 1) | : No | ||||
3) | Changes in accounting estimates | : No | ||||
4) | Restatements | : No | ||||
(4) Number of shares of common stock issued | ||||||
1) | Number of shares of common stock | As of June | 91,199,116Fiscal year ended | 91,199,116 | ||
outstanding at the end of the period | ||||||
30, 2022 | sharesDecember 31, 2021 | Shares | ||||
(including treasury shares) | ||||||
2) | Number of treasury shares at the end of the | As of June | 29,305,393Fiscal year ended | 27,358,682 | ||
period | 30, 2022 | SharesDecember 31, 2021 | Shares | |||
3) | Average number of shares during the | As of June | 62,598,365As of June 30, | 67,860,444 | ||
second quarter | 30, 2022 | shares2021 | shares |
* This quarterly Summary of Consolidated Financial Results (Quarterly "Tanshin") is outside the scope pf the external auditor's quarterly review procedure.
* Appropriate use of earnings forecast and other matters to note
・This document contains forward-looking statements including forecasts in relation to the results of operations and they are based on information available to the Company at the time of preparing the document along with certain assumptions that are deemed to be rational. Actual results may differ materially from those expressed or implied by the statements due to various factors. For the assumptions underlying the earnings forecast presented and other information regarding the use of such forecasts, please refer to "Information Related to the Consolidated Earnings Forecast and Other Future Projections" on page 3 of the Appendix.
- The Company plans on holding a financial results briefing session for investors as follows. All documents etc. distributed at the briefing session will be posted on the company's website after the briefing session is held.
- Financial results briefing session for institutional investors and analysts: Wednesday, August 10, 2022
○Table of Contents for Appendix | ||
1. Qualitative Information Concerning Consolidated Financial Results | ||
for the Quarter Under Review .................................................................................................................... | 2 | |
(1) | Description of Operating Results............................................................................................................. | 2 |
(2) Description of Financial Position ............................................................................................................. | 2 | |
(3) | Information Related to the Consolidated Earnings Forecast and Other Future Projections.................... | 3 |
2. Quarterly Consolidated Financial Statements.............................................................................................. | 4 | |
(1) | Quarterly Consolidated Balance Sheets.................................................................................................. | 4 |
(2) | Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of | |
Comprehensive Income........................................................................................................................... | 6 | |
Quarterly Consolidated Statements of Income (Six-months Period) ....................................................... | 6 | |
Quarterly Consolidated Statements of Comprehensive Income (Six-months Periods) ........................... | 7 | |
(3) | Notes to the Quarterly Consolidated Financial Statements..................................................................... | 8 |
(Notes on the Going-concern Assumption)............................................................................................ | 8 | |
(Notes on Any Significant Changes to the Amount of Shareholders' Equity) ........................................ | 8 | |
(Segment Information)............................................................................................................................ | 9 | |
(Additional Information) .......................................................................................................................... | 9 | |
(Significant Subsequent Events)............................................................................................................ | 9 |
1
1. Qualitative Information Concerning Consolidated Financial Results for the Quarter
(1) Description of Operating Results
The Japanese game market grew 16.5% year-on-year to 2.0188 trillion yen*1 in 2020, supported by an expansion of the mobile-game market and strong sales of home-console game software. In 2020, both the global game content market and the mobile game market continued to grow, as did the home-console game market and the PC online game market, resulting in a 31.6% year-on-year increase to 20.6417 trillion yen*.
In addition, the economic environment is beginning to show signs of recovery, although the future outlook is uncertain due to some stagnation caused by COVID-19.
Against this backdrop, our company continued to concentrate on game development with a focus on global distribution in aim of the "creation of new value," and in order to "maximize existing value," we have worked to maintain and expand MAU (Monthly Active Users: the number of users who log into the game at least once a month) , and have made efforts to strengthen the brands of each of our games.
As for existing games, "Puzzle & Dragons" (referred to as "P&D" henceforth) has had continuous updates and events held, such as adding new dungeons, improving game contents, and collaborating with famous characters from other companies, all with the main objective of providing players with the ability to have continued long-term enjoyment of the game, and MAU continued to be firm. The P&D service marked the 10-year anniversary of its launch on February 20, 2022, so events were held to celebrate this milestone and efforts were made to encourage activity by its active users. As a result, the total number of domestic downloads exceeded 59 million on April 23 ,2022. The Nintendo SwitchTM "Ninja-Gum" action game "Ninjala" is continuing to expand its user base through collaboration events, online competitions, TV anime broadcasts, a wide range of cross-media deployment, and merchandise sales, and on May 26, 2022, the world total number of downloads exceeded 9 million.
As for new games, the MAU of "Ragnarok Origin," an MMORPG for smartphones that started service in Japan on June 28, 2021, continues to be stable due to the implementation of updates and events.
Looking at the businesses of our subsidiaries, the Ragnarok-related titles distributed by Gravity Co., Ltd. and its consolidated subsidiaries are continuing to contribute to our consolidated financial results with ongoing updates and events.
As a result, the Company's consolidated results of operations for the period under review were as follows. Net sales decreased 8.6% year-on-year to JPY 46,635 million, operating profit decreased 23.1% year-on-year to JPY 13,242 million, ordinary profit decreased 18.5% year-on-year to JPY 14,403 million, and quarterly net profit attributable to owners of parent company decreased 34.6% year-on-year to JPY 8,684 million.
The GungHo Group is a single-segment company; therefore, no segment information is disclosed.
* Famitsu 2021 Game White Paper
(2) Description of Financial Position
Total assets for the period under review stood at JPY 136,626 million, an increase of JPY 1,695 million from the end of the previous fiscal year. This was mainly due to the increase in cash and deposit when the Company recognized the quarterly income attributable to owners of parent.
Total liabilities amounted to JPY 16,179 million, a decrease of JPY 78 million from the end of the previous fiscal year. This was primarily attributable to a decrease in income taxes payable due to the payment of income taxes.
Total net assets came to JPY 120,446 million, an increase of JPY 1,774 million from the end of the previous fiscal year. This was mainly due to the increase in retained earnings when the Company recognized the quarterly income attributable to owners of parent.
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Gungho Online Entertainment Inc. published this content on 10 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2022 06:55:02 UTC.
