On June 7, gumi announced its consolidated financial results for the fiscal year ending April 2024, revealing a challenging year marked by a sharp decline in sales and substantial losses. The company reported sales of ¥12.066 billion, a 24.6% decrease from the previous fiscal year. The operating loss stood at ¥5.040 billion, a significant reversal from the previous year’s profit of ¥447 million. Ordinary loss reached ¥4.514 billion, compared to a ¥19 million loss last year, while the net loss was ¥5.934 billion, down from a ¥445 million profit.
The disappointing financial performance was attributed to weaker-than-expected sales of “Astral Talicus” and the cancellation of an original title under development. The blockchain business also faced widening deficits due to upfront investments and delays in new title releases. Despite recording a ¥2.4 billion gain on investment securities, the company incurred a ¥2.8 billion impairment loss on “Astarte Talisque” and a ¥200 million valuation loss on investment securities, contributing to the final net loss.
Segment Analysis
Mobile Online Game Business
Sales in this segment dropped by 30.6% to ¥10.734 billion, with an operating loss of ¥3.485 billion, reversing from a profit of ¥735 million in the previous period. The decline was driven by decreased sales from existing titles and underperformance of new releases like “Astarta Talicus.” Additionally, the company faced one-off expenses related to discontinuing development of an original title.
Blockchain and Other Businesses
This segment saw sales increase by 147.5% to ¥1.331 billion, but operating losses widened to ¥1.554 billion from ¥288 million the previous year. The growth in sales was driven by the successful launch of “Phantom of the Kill -Alternative Imitation-” and increased revenues from asset management. However, increased development investments and delays in new title releases hindered profitability.
Gumi aims to achieve early profitability in its blockchain business by focusing on blockchain game distribution and platform business, as well as asset management and investment in the financial sector. Despite current challenges, the company remains optimistic about the future potential of its diversified business strategy.
