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Nihon Falcom Reports Decreased Q3 Revenue Amid Upcoming Title Releases

A focus on fourth-quarter releases impacts financial performance as company anticipates stronger year-end results
Japan
n 3723.TSE Games 75
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Nihon Falcom Inc. announced its financial results for the third quarter of the fiscal year ending September 2024, reporting decreases in both revenue and profit. This downturn is largely due to the company’s strategic focus on the upcoming release of the latest installment in the Kiseki series, “The Legend of Heroes: Trails in the World – Farewell, O Zemuria,” scheduled for September.

For the period from October to June, the company reported sales of 1,272 million yen (approximately US$8.73 million), reflecting a 14.0% decline year-on-year. Operating profit fell by 38.8% to 453 million yen, ordinary profit decreased by 36.4% to 478 million yen, and net profit dropped by 36.6% to 331 million yen.

In the Product Division, sales amounted to 179 million yen, down 5.1% year-on-year. This includes sales from the 35th-anniversary release of the “Ys” series title “Ys X-NORDICS-” and other related products. The division saw significant releases, such as “The Legend of Heroes: Kuro no Kiseki” and “Ys Memoirs: Oath in Felghana.”

The Licensing Division reported sales of 1,092 million yen, down 15.3% year-on-year. The division released several localized versions of its games, including English and other language versions of popular titles like “Ys X – NORDICS-” and “The Legend of Heroes: Trails of Cold Steel” series.

The company is strategically positioning itself for a robust fourth quarter, with plans to release major titles like “The Legend of Heroes: Kai no Kiseki -Farewell, O Zemuria-” in September. Additionally, it is preparing to release various new projects, including “Tokyo Xanadu.”

Despite the third-quarter setbacks, Nihon Falcom has maintained its full-year earnings forecast, expecting sales of 2.5 billion yen, a 1.1% increase from the previous fiscal year. However, it projects a decline in operating and ordinary profits by 9.6% and 10.7%, respectively, with net profit expected to decrease by 12.2%.

For the third quarter alone, sales were 259 million yen, a 341.0% increase from the same period last year, although the company recorded an operating loss of 52 million yen and a net loss of 26 million yen due to the preparation for upcoming launches.

Nihon Falcom remains focused on delivering new titles and leveraging its popular franchises to drive future growth, despite current financial challenges.

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