KLab Releases 16-Month Period Financials
Posted 14:30 EST on 14FEB2014 by: indie navi news staff in news » financials, KLab, love live: school idol festival
Today, KLab announced its earnings for the 16-month period ending in December 2013. Since KLab announced earnings based on a 16-month period, a direct comparison to its anticipated sales and operating losses is difficult, but the numbers aren’t good. Sales of 20.9 billion ($209 million) yen resulted in an operating loss of 1.2 billion yen ($12 million) and a net loss of 2.5 billion yen ($25 million).
Below are some of the reasons KLab listed for its poor performance:
- Several titles were delayed, and titles that were released performed much more poorly than had been anticipated.
- Earnings from releases were also much lower than had been projected.
- Large expenses were accrued in contracting costs to get delayed titles out the door.
- Although sales from May on were close to what had been projected, royalties on franchise licenses resulted in an operating losses in subsequent months.
- Pro Baseball: Grand Slam and Rise to the Throne did not perform as well as expected, and sales through Lord of the Dragons tapered off.
- Poor performance in Q4 of KLab titles required us to make sudden and extensive changes to its release schedule. In the end, only one title was released in Q5, which contributed only 5.5 billion yen ($55 million).
On the plus side, KLab points out that Love Live: School Idol Festival performed well, contributing to a small operating profit in May.
For Q1 for KLab’s FY which will now end in December of 2014, the company is predicting sales of 4 billion yen (%40 million), an operating loss of 90 million yen ($900 thousand), and a net loss of 86 million yen ($860 thousand). KLab refrained from making predictions for its total fiscal year.
News source: Social Game Info
KLab corporate office image source: MdN Design Interactive