Fiscal Year Ending January 2027, 2Q Interim Financial Results for Consolidated, Japanese GAAP

Overview of results

Our group is expanding the digital content business and stabilizing contract development, pursuing a hybrid revenue model. Interim period net sales were 2,592 million yen, ordinary income 144 million yen, and net income attributable to owners of parent 32 million yen, reflecting a substantial year-on-year increase. However, there is a reliance on IP-related revenue, so continued IP development is expected to be key to growth. Full-year guidance remains: net sales 5,300 million yen, operating income 275 million yen, ordinary income 290 million yen, and net income 280 million yen.

Financial position and cash flows

At interim period end, total assets were 3,804 million yen, net assets 2,584 million yen, equity ratio 65.9%, and cash and cash equivalents 1,079 million yen. A decrease in short-term borrowings contributed to improved financial status. Operating cash flow was 134 million yen, investing cash flow was negative 16 million yen, and financing cash flow was negative 302 million yen, indicating a healthy cash flow. Going forward, there is an indication of allocating cash toward IP-related initiatives.