Japanese game developer Drecom Co. (3793) on Oct. 29 raised its net profit forecast for the fiscal year ending March 2027 by 50% to ¥900 million from ¥600 million, after booking a ¥125 million income tax adjustment gain in the second quarter.
The company cut its revenue forecast by 2.8% to ¥17.5 billion from ¥18.0 billion but raised its operating profit outlook by 30.0% to ¥1.3 billion from ¥1.0 billion.
| Item | Previous | Revised |
|---|---|---|
| Revenue | ¥18.0 billion | ¥17.5 billion |
| Operating profit | ¥1.0 billion | ¥1.3 billion |
| Ordinary profit | ¥900 million | ¥1.15 billion |
| Net profit attributable to owners | ¥600 million | ¥900 million |
| EPS | ¥21.05 | ¥31.68 |
Drecom said its main IP title distributed by another company is performing above expectations, but first-half revenue from some self-published titles fell short of plan and it revised the sales plan for its other businesses. A shift in revenue mix and lower payment fees led it to cut projected variable costs to ¥4.8 billion from ¥5.5 billion, while fixed costs are now seen at ¥11.4 billion versus ¥11.5 billion, mainly on more efficient advertising spending. The net profit revision also reflects deferred tax assets recognized after the company reviewed their recoverability.
First-half (April-September) revenue rose 1.1% to ¥8.33 billion. Operating profit was ¥659 million and net profit attributable to owners ¥502 million, versus an operating loss of ¥574 million and a net loss of ¥2.36 billion a year earlier. The game segment posted a profit of ¥1.16 billion after a year-earlier loss of ¥114.9 million, while the content segment's loss widened to ¥500.6 million on revenue up 35.4%.
Drecom maintained its year-end dividend forecast of ¥5.00 per share for the year ending March 2027.
Next steps: Drecom plans to file its semiannual securities report on Nov. 10, 2026.
| Hikari Tsushin, Inc. | |
| Offer price | ¥1,000 per common share |
| M&A / TOB | 1 |
| Guidance | 0 |
| Buybacks | 0 |
| Dividends | 0 |
| Capital | 0 |
| Earnings | 0 |
| People | 0 |
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