Third Quarter Financial Summary for the Fiscal Year Ending March 2026 [IFRS] (Consolidated)

Overview of Performance

For the third quarter of the fiscal year ending March 2026, consolidated performance recorded net sales of JPY 353.02 billion (up 13.6% YoY), operating profit of JPY 101.7888 billion (up 17.4% YoY), ordinary income of JPY 105.042 billion (up 18.3% YoY), and net income attributable to owners of parent for the quarter of JPY 74.347 billion (up 17.8% YoY), all achieving consecutive record highs in key profit indicators. The core Digital Entertainment segment performed strongly, with Digital Entertainment, Arcade Games, and Sports segments recording increases in both sales and profits, while the Gaming & Systems segment experienced declines in sales and a substantial decrease in operating profit.

Financial Position and Cash Flow Status

Total assets reached JPY 710.796 billion, an increase of JPY 45.756 billion from the previous fiscal year-end, and total equity rose to JPY 536.813 billion, an increase of JPY 54.945 billion, with the equity attributable to owners of parent ratio improving to 75.5%. Cash flow from operating activities increased to JPY 83.69 billion (up 9.5% YoY), while cash flow used in investing activities was an outflow of JPY 44.911 billion (up 4.8% YoY), and cash flow used in financing activities was an outflow of JPY 50.065 billion (up 109.3% YoY).

Revision of Earnings Guidance

The consolidated full-year earnings forecast for the fiscal year ending March 2026 has been revised upward, projecting net sales of JPY 468 billion (up 11.0% from previous forecast), operating profit of JPY 131 billion (up 20.1%), ordinary income of JPY 123 billion (up 18.3%), and net income attributable to owners of parent of JPY 86 billion (up 15.1%), exceeding initial plans. This is primarily driven by the favorable performance of the key title 'eFootball™' in the Digital Entertainment segment.