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YUKE’s Reports Q1 Revenue Decline Amid Absence of Major Contracts

First-quarter profit drops 71.3% despite new game releases and ongoing projects in XR and mobile content
Japan
y 4334.TSE Games 75
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On June 7, YUKE’s announced its consolidated financial results for the first quarter (February to April) of the fiscal year ending January 2025, revealing significant declines in both revenue and profit due to the absence of major contract projects. The company reported sales of ¥833 million, down 17.0% year-on-year, with an operating profit of ¥36 million, marking a steep 79.5% decrease. Ordinary profit dropped 68.0% to ¥61 million, while net profit fell 71.3% to ¥40 million.

Despite the downturn, YUKE’s made notable strides in various sectors. The commissioned software, “A Square Appears Again on the Square Earth!? Digibok Earth Defense Force 2 EARTH DEFENSE FORCE: WORLD BROTHERS,” published by D3 Publisher, was released on May 23, 2024. Additionally, the company’s development staff participated in the “Tales of ARISE – Beyond the Dawn” session at the GAME CREATORS CONFERENCE’24 on April 5.

In the XR business field, multiple live projects progressed, while the pachinko and pachislot field saw commissions for developing video content for several titles. In the mobile content field, multiple projects are also in development.

Full-Year Earnings Forecast Remains Unchanged.

YUKE’s maintained its consolidated financial forecast for the full fiscal year ending January 2025, projecting sales of ¥4,040 million, a slight decline of 1.1% from the previous term. The company expects a significant recovery in profitability, with an operating profit forecasted at ¥397 million, up 121.4%, and ordinary profit also at ¥397 million, an increase of 40.7%. Net profit is anticipated to reach ¥333 million, a turnaround from the previous year’s loss of ¥1,349 million.

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