Fiscal Year Ending March 2026 Q3 Financial Presentation

Overview of Results

For the consolidated results of the third quarter of the fiscal year ending March 2026, net sales were ¥335.2 billion, operating income was ¥19.8 billion, ordinary income was ¥23.8 billion, and net income attributable to owners of the parent was -¥16.8 billion. Results fell short of initial forecasts, mainly in the entertainment and gaming businesses, largely impacted by an impairment loss of approximately ¥31.3 billion related to Rovio’s goodwill and other intangible assets. Adjusted EBITDA also declined significantly to ¥3.4 billion compared to the same period last year. The equity ratio was 56.2%, down 2.9 percentage points year-over-year.

Outlook and Earnings Guidance Revision

Following the impairment loss recognition, full-year earnings guidance was revised. Ordinary income was lowered from an initial forecast of ¥56.0 billion to ¥43.5 billion, and net income was drastically revised from ¥37.5 billion to -¥13.0 billion. By segment, the Entertainment Contents business is expected to underperform the initial outlook due to weaker-than-expected full-game sales, new F2P titles, and Rovio’s results, while the Pachinko and Pachislot Machine business is projected to exceed plans driven by strong sales of main title products. The Gaming business anticipates an expanded ordinary loss due to increased contributions from two recently acquired companies alongside impairment recognition. Foreign exchange fluctuations will positively impact net sales by approximately ¥2.1 billion and operating income by about ¥200 million.