GungHo FY2013 Earnings by Platform and Market Sector

February 3rd, 2014 by in , , ,

February 3rd: GungHo Online Entertainment released the figures for its financial year ending in December 2013. Thanks largely to its flagship series Puzzle & Dragons, GungHo achieved remarkable increases in overall sales and operating profits.

At 163 billion yen (USD 1.63B), GungHo’s sales were up 531.5 percent in comparison to FY2012, and at 91.2 billion yen (USD 912M), its operating profits increased 863.1 percent. Gungho’s net profits were 54.7 billion yen (USD 547M), an increase of 567.1 percent.

Earnings by OS

GungHo’s sales through the App store totaled 69.1 billion yen (USD 691M) for the fiscal year ending in December 2013. Sales through Google Play for the same period totaled 81.5 billion yen (USD 820M). Calculated as percentages, 42 percent of GungHo’s profits for the financial year were earned via the App Store, with 50 percent earned through Google Play.

Looking back one year, GungHo took in 9.8 billion yen (USD 98M) and 5.2 billion yen (USD 52M) through the App Store and Google Play, respectively. Making a year-to-year comparison, App Store earnings for the financial year ending in December 2013 were 7 times that of the previous financial year, while Google Play earnings were 15.6 times those of the previous year. In addition to demonstrating GungHo’s remarkable growth through 2013, these figures are also indicative of the turnaround the Android OS is enjoying Japan as it steadily moves toward overtaking Apple’s iOS in terms of market share.

Earnings by market sector

GungHo’s earnings through online software and applications for PCs totaled 6 billion yen (USD 60M), a 25.3 percent decrease from FY2012, which resulted in an operating loss of 800M yen (USD 8M). One reason for the decline in sales is the user base shift away from PCs to smartphones for social networking and applications.

Ironically, another reason is a streamlined user experience. For many of its applications, GungHo did away with the need to log in to the application to participate in community message boards and activities. Users only interested in these community elements no longer logged in to the application, resulting in decreased ad revenue and other sales.

In the mobile sector, GungHo’s sales totaled 157.2 billion yen (USD 1.6B), a 772.5 percent increase in comparison to FY2012, with operating profits of 93.4 billion yen (USD 934M) — a remarkable 972.5 percent increase.

Among GungHo’s mobile applications, Princess Punt and Divine Gate established themselves as tent pole titles. Princess Punt is currently at 24th place on the Japan App Store rankings in the games category, and 13th in the Google Play Japan rankings.

However, the majority of GungHo’s earnings came from the Puzzle & Dragons franchise. Sales related to Puzzle and Dragons (including sales from its iOS and Android versions and the Nintendo 3DS version Puzzle & Dragons Z, released on December 12th) totaled 148.5 billion yen (USD 1.5B), an increase of 917.8 percent from the previous fiscal year. This accounts for 91.1 percent of GungHo’s earnings in FY2013.

Quarter-on-quarter comparison

Quarter on quarter, GungHo saw an increase in sales but a small decrease in operating profits. OCT-DEC sales totaled 46.7 billion yen (USD 467M), a 12.4 percent increase from the JUL-SEP quarter, but at 22.7 billion yen operating profits were down 2.8 percent. Net profits for the OCT-DEC quarter were 12.1 billion yen (USD 121M), a 15.8 percent QoQ decrease.

GungHo sales by year and quarter

gungho financials SEP through DEC 2013

GungHo operating profit by year and quarter

gungho financials SEP through DEC 2013

GungHo also reported its estimated earnings for the month of January: 16.5 billion yen (USD 165M), a 187.4 percent increase from January 2013.

News and images source: Social Game Info [ 1, 2 ]