CAVE Interactive reported a strong fiscal year ending May 2024, with significant increases in sales, operating profit, and ordinary profit, largely attributed to the full-year contribution from DeraGame, which became a consolidated subsidiary in September 2022. However, the net profit declined sharply due to an extraordinary gain in the previous year and recent impairment losses.
The company’s sales soared by 76.3% year-on-year to 12,274 million yen, while operating profit surged by 667.4% to 1,870 million yen, and ordinary profit rocketed by 809.6% to 1,943 million yen. Despite these gains, net profit fell by 44.1% to 1,441 million yen, impacted by a previous negative goodwill gain of 2.635 billion yen and an impairment loss of 131 million yen.
In the Game Business segment, sales rose 82.2% year-on-year to 12,026 million yen, with segment profit increasing by 527.0% to 1,938 million yen. The launch of “Touhou Fantasy Eclipse” in November 2023 exceeded expectations with over 200,000 pre-registrations and strong download numbers. Efforts to enhance user satisfaction, including new features, events, and real-life promotions at the 21st Hakurei Shrine Festival, contributed to this success.
Other titles like “Gothic wa Mahou Otome” celebrated anniversaries and held collaboration events, further engaging the user base. Major games from DeraGame, such as “Monster Strike” and “Kingdom Ran – The Road to Unification,” also performed well, significantly contributing to the group’s overall performance.
Conversely, the Video Distribution-related Business faced challenges, with sales dropping 32.0% to 247 million yen. Despite the increased competition in live streaming, the subsidiary Capable managed to reduce losses by improving management efficiency. The company also ventured into new business areas, leveraging SNS marketing expertise to secure additional revenue streams.
CAVE Interactive has not disclosed its earnings forecast for the fiscal year ending May 2025, citing unpredictable short-term changes in the game business environment.
