Press Releases

Earnings Results Briefing for the First Quarter Ended June 30, 2010

07/22/2010

Outline of Business Results

Business year ending in March 2011
1st quarter
Business year ending in March 2010
1st quarter
Operating revenues 885,462,000 yen
Operating income 100,845,000yen
Ordinary profit 103,228,000yen
Net income after income taxes for the (current) quarter period 59,001,000yen

Note: The details for the first quarter of the business year ending March 2010 are not listed because the consolidated financial statement has been prepared.

Business Results

For the current first quarter account period, the Company recorded operating revenues of 885,462,000 yen, and for profits, the Company earned operating income of 100,845,000 yen, ordinary profit of 103,228,000 yen, and net income before income taxes of 100,603,000 yen.
As a result, net income after income taxes was 59,001,000 yen for the current first quarter account period.

Online Game Business

The online game business, which the Company focuses on as a new management pillar, increased sales to 545,011,000 yen for the current first quarter account period, up 82.4% from the same quarter period of the previous year. As for the traditional online games (those downloading client software onto your computer), which account for almost 40% of sales from the online-game business, five titles were offered during the period including Sangoku Heroes, which has been stably popular since its official start in April of 2009, but sales decreased by 7.1% from the same quarter the previous year. Meanwhile, as for browser games (online games running on browsers and not necessary to download) which operate on the specialized portal site Browser Game Time, five titles, including Dragon Crusade, were offered during the period (among which one is for overseas market), and sales doubled by 98.5% from the same quarter the previous year. In addition, for mobile games (a type of browser game that can be played on a cell phone without an application), which started in August of 2009, six titles, including Kiss to My Prince, were offered during the period mainly through specialized websites operated by companies running a social networking website for cell phones. They accounted for a percentage close to traditional online games, contributing to the successful development of browser games in a broad sense, including mobile games. As a result, the online game business accounted for as much as 61.6% of operating revenues. In terms of profits, a large sales increase absorbing an increase in the allocated portion of fixed costs largely contributed to the enhancement in earning capacity.

Software Sales Business

Sales from the software sales business during the current first quarter were 303,832,000 yen. Among these, those from the Pro Regi service were 261,811,000 yen and those from the Share Regi service were 6,295,000 yen. In the software download sales business, although there is still strong demand for anti-virus software, interest in computer software in general is low; therefore, the effect of the sales-promotion campaign was limited. Additionally, sales from the download-sales total support service were 29,233,000 yen, which continued to be stagnate due to the difficulty in acquiring new customers.

Website Advertisement Business

Sales from the website advertisement business were 35,348,000 yen. Among them, those from keyword advertisements (listing advertisement) accounted for almost 50% and led the website advertisement sales business. However, the business category in general is stagnated due to delayed economic recovery.

Other Businesses

Sales from other businesses totaled 1,270,000 yen. More than half were sales from the membership-based blog service for individuals, which includes the entrusted operation service of other companies’ servers as well, showing a transition at low levels.

Press Releases » 2010

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