KLab Inc. announced its financial results for the second quarter ending June 2024, revealing a significant drop in revenue and widening losses. The company reported sales of 3.629 billion yen (US$25.5 million), a 32.4% decrease from the same period last year, as the number of operating titles decreased following the termination of games like “Utano☆Prince-sama♪ Shining Live” last December.
The company recorded an operating loss of 1.024 billion yen (US$7.2 million), up from a 573 million yen loss in the same period last year. The ordinary loss was smaller at 821 million yen (US$5.8 million), aided by a 138 million yen foreign exchange gain. However, net losses widened to 1.341 billion yen (US$9.4 million), influenced by the withdrawal of 453 million yen in deferred tax assets due to the delay of the new game “EA SPORTS FC TACTICAL” in collaboration with EA.
Despite these challenges, “Captain Tsubasa: Dream Team” exceeded sales expectations thanks to successful anniversary campaigns and game balance improvements. The launch of the new title “Haikyu!! FLY HIGH,” developed with Changyou and Prophet Games, also contributed positively to sales.
KLab’s decision to sell shares in BLOCKSMITH & Co. resulted in its removal from consolidation, affecting the blockchain segment reporting. The company has withheld its full-year earnings forecast due to ongoing uncertainties and difficulties in projecting future performance.
