NJ Holdings announced its consolidated financial results for the fiscal year ending June 2024, showing a marked improvement in profitability despite a decline in sales. The company reported total sales of 9.698 billion yen (approximately US$67 million), a decrease of 4.3% compared to the previous year. However, the company achieved an operating profit of 102 million yen, a significant turnaround from the 239 million yen loss recorded in the previous fiscal year. Similarly, ordinary profit reached 96 million yen, compared to a loss of 260 million yen the year before, and net profit was 274 million yen, rebounding from a 469 million yen loss.
The improved financial performance was primarily due to the transfer of rights to internally developed game titles and enhanced cost controls, as well as a partial recovery in mobile handset sales.
Sales in the game segment fell by 5.2% year-on-year to 7.58 billion yen. The decline was attributed to a reduction in the number of titles in development and operation. Despite slowdowns in orders during the fourth quarter, the company managed to secure a segment profit of 340 million yen, an impressive increase of 296 million yen compared to the previous year. This was achieved by controlling outsourcing expenses and benefiting from the transfer of rights to game titles.
The mobile segment reported a slight decrease in sales by 0.3% to 2.063 billion yen. Although the number of units sold declined due to the closure of unprofitable stores, a rise in device prices helped stabilize sales. The segment turned profitable, achieving a profit of 46 million yen, compared to a loss of 14 million yen in the previous year. This turnaround was driven by higher profits per customer from sales of accessories and other peripheral products.
Other business activities contributed 70 million yen in sales, a minor decrease of 0.8% year-on-year. Segment profit was 35 million yen, down 5.2% from the previous year.
Looking ahead, NJ Holdings projects a challenging fiscal year ending June 2025, with expected sales of 8.87 billion yen, down 8.5% from the previous year. The company forecasts an operating profit of 100 million yen, ordinary profit of 60 million yen, and net profit of 40 million yen, reflecting declines of 2.6%, 37.7%, and 85.4%, respectively. Earnings per share (EPS) are anticipated to be 7.56 yen.
Despite the expected decline in revenue and profit, NJ Holdings remains focused on leveraging its strategic initiatives to drive future growth and stabilize its financial performance.
