Falcomreleased their financial reports for the fiscal year that ended on 9/30/2014. Some of the basic key points from the supplementary powerpoint for the balance sheet can be seen below:
Total Sales: 2,541,000,000 yen (approx. $21,752,220) (a 38.1% increase from 2013)
Operating Profit: 1,302,000,000 yen (approx. $11,145,760) (83.2% increase from 2013)
Operating Income: 1,303,000,000 yen (approx. $11,155,760) (83.2% increase from 2013)
Net Income: 773,000,000 (approx. $6,618,110) (77.5% increase from 2013)
They are predicting the following numbers for the 9/2015 period:
Total Sales: 2,000,000,000 yen (approx. $17,119,420)
Operating Profit: 750,000,000 yen (approx. $6,419,780)
Operating Income: 750,000,000 yen (approx. $6,419,780)
Net Income: 483,000,000 yen (approx. $4,134,720)
9/2014 has provided the second ‘record earnings’ in a row for the company, after the successful sales of Sen no Kiseki in the Asia regions and the release of Sen no Kiseki II in Japan and Asia. Through 9/2015, they expect the continued sales of Sen no Kiseki and Sen no Kiseki II, along with newcomers to the Kiseki series both domestic and overseas. They also have their aim on a successful release of their new title, as well.
Topics for 9/2014 Period
* Continuing the trend from 2013, the Legend of Heroes Sen no Kiseki II won the Japan Games Awards Future Award in 2014 at Tokyo Game Show, just like its predecessor. When compared to the number of titles shown at TGS, Sen no Kiseki II was one of 1,363 titles shown, amongst 421 exhibitors.
* The Legend of Heroes Sen no Kiseki marked Falcom’s first Asian release, by having the title launch in Hong Kong, Taiwan, and Korea in both the Chinese and Korean languages.
* Asia users took to the release very well. In Hong Kong, Taiwan, and Korea, there were many reports of the initial shipment of the games being soldout at stores.
* The Legend of Heroes Sen no Kiseki II saw a simultaneous release in both Japan and the Asia region.
Initiative for 9/2015 Period
* A new title for the Ys series is under development for the Playstation 4 console and the Playstation Vita handheld. First published in 1987, this 27 year old masterpiece series has been on multiple platforms and seen success in North America, Europe, and Asia regions.
* Development for this large scale title is progressing well. More information should be released from Falcom soon.
More details on the financial report can be found behind the cut.
Company Name: Nihon Falcom
Nikkei Code 3723
URL http://www.falcom.co.jp
Date of Report: 11/13/2014
Period Reported: 10/1/2013 ~ 9/30/2014
Basic Results
| Sales | Operating Profit | |||
| 2014 | ¥2,541,000,000 (approx. $21,752,220) |
▲38.1% | ¥1,302,000,000 (approx. $11,145,760) |
▲83.2% |
| 2013 | ¥1,840,000,000 (approx. $15,739,550) |
▲44.7% | ¥710,000,000 (approx. $6,073,080) | ▲107.9% |
| Operating Income | Net Income | |||
| 2014 | ¥1,303,000,000 (approx. $11,155,760) |
▲83.2% | ¥773,000,000 (approx. $6,618,110) |
▲77.5% |
| 2013 | ¥711,000,000 (approx. $6,081,630) |
▲107.3% | ¥435,000,000 (approx. $3,720,460) |
▲101.1% |
Administration Results – Analysis of Financial Data
- Analysis of Administration Results
- Administration Results for the Current Term
- This fiscal year, changes in the game software market include expansion of mobile applications, and changes in the portable and console gaming markets. While competition is very fierce, excellent products will help keep a place in a tough market.
The company itself has remained in favor of its userbase, after last year’s release of The Legend of Heroes Sen no Kiseki to Playstation 3 and Playstation Vita systems, and won various awards including the a Playstation Award, a Famitsu Award, and First Prize with the Japan Games Awards.
Over this previous term, the licenses have gone with the launch of The Legend of Heroes Sen no Kiseki in the Asia region. Furthermore, the the Kiseki series 10th Anniversary title and sequel to Sen no Kiseki, The Legend of Heroes Sen no Kiseki II, had both a simultaneous domestic and Asia-region release.
Also, various contents based from the company have made their appearances in online games, and smartphone applications, as well as other media releases in the form of TV anime, comics, and novalizations. Live events to commemorate the 10th anniversary happened both inside and outside of the country, and there are plans to press forward with these developments.
The outcome for all of this led to sales of 2,541,000,000 yen, (up 38.1% from last year), an operating income of 1,303,000,000 yen (up 83.2%), and a net income of 773,000,000 yen (up 77.5%) for this current term. Details for the two different areas of sales are below. - Product Sales – In June of this fiscal year, The Legend of Heroes Sen no Kiseki was released in Chinese and Korea for markets in Hong Kong, Taiwan, and Korea. The game saw success in its release, as it was sold out in many stores in the Asia region.
With the Playstation 3 and Playstation Vita release of The Legend of Heroes Sen no Kiseki II, the Kiseki series maintained its long-selling status as the userbase continued to support it at the series’ 10th anniversary. At Tokyo Game Show, Sen no Kiseki II was awarded a Grand Prize in the Tokyo Games Future titles class. The game also saw large numbers shipped out in the Asia region for its simultaneous release.
As a result, the product sales for this fiscal year were 1,895,000,000 yen (up 26.4% from last year). - Licensed Goods – This year saw expansion of the company’s contents over multiple platforms, as well as characters being licensed to be used in various areas, and games being released for PC outside of Japan on the STEAM platform showing favorable sales, as well as sales of Ys Memories of Celceta in North America and Europe. Within Japan, The Legend of Heroes Ao no Kiseki Evolution was released for the portable game system, the Playstation Vita.
Also, there were collaborative efforts involving The Legend of Heroes Sen no Kiseki II; these include Capcom’s Monster Hunter Portable G, and the heavily downloaded Road to Dragons by Acquire, an expansion to anime, and with the original banner flags throughout Tachikawa, there was a significant increase to the company’s userbase.
As a result, the licensing sales for this fiscal year were 646,000,000 yen. (up 89.4% from last year.) - Forecast for the Next Term
The next financial period will be the first time that the company is behind promotional sales for the Legend of Heroes Sen no Kiseki and Sen no Kiseki II both in domestic and foreign markets.
Not only that, but a new large-scale title is currently in development set to be released during the next period. Furthermore, this will be a highly recognizable IP, that this company will be to actively promote.
Due to this, the estimation for the results for the term that ends in September 2015, is that the total sales will be 2,000,000,000 yen, with an operating profit of 750,000,000 yen, and a net income of 483,000,000 yen.
The performance for the company may change over the next period, based on the sales and trends of new products. Many of the sales and changes may occur during the second half of the year, so up to the second quarter, the numbers may appear to fall short of the predictions.
| Financial Statements – Balance Sheet (At 10,000 yen increments) | ||
|---|---|---|
| 2013 | 2014 | |
| Assets | ||
| Current Assets | ||
| Cash Available | 1,855,343 | 2,465,346 |
| Accounts Recievable | 1,198,438 | 1,612,572 |
| Finished Products | 4,449 | 2,470 |
| Raw Materials | 5,878 | 4,558 |
| Adv. Payment Expenses | 4,747 | 4,652 |
| DTA | 41,300 | 59,676 |
| Other | 3,014 | 2,113 |
| Total of Current Assets | 3,093,170 | 4,151,389 |
| Fixed Assets | ||
| Tangible Fixed Assets | ||
| Facilities | 16,281 | 16,281 |
| Sum of Depreciation | ▲11,015 | ▲12,163 |
| Facilities Equipment | 5,265 | 4,118 |
| Tools, Equip., Fixtures | 29,848 | 32,085 |
| Sum of Depreciation | ▲26,652 | ▲26,105 |
| Tools, Equip., Fixtures | 3,195 | 5,979 |
| Total of Tangible Fixed Assets | 8,460 | 10,097 |
| Intangible Assets | ||
| Software | 8,250 | 6,661 |
| Telephone Lines | 757 | 757 |
| Total of Intangible Fixed Assets | 9,007 | 7,418 |
| Other Investment Assets | ||
| Deferred Assets / DTA | 17,990 | 8,742 |
| Security Deposits | 31,739 | 31,407 |
| Total Other Investment Assets | 49,730 | 40,150 |
| Total Fixed Assets | 67,199 | 57,666 |
| Total Assets | 3,160,369 | 4,209,056 |
| Debts | ||
| Current Liabilities | ||
| Accounts Payable | 233,908 | 304,345 |
| Arrears | 78,742 | 112,551 |
| Accrued Expenses | 14,638 | 14,245 |
| Unpaid Corporate Taxes | 297,420 | 519,448 |
| Unpaid Consumption Taxes | 38,739 | 55,073 |
| Advance Received | 24 | 10 |
| Deposit Received | 5,730 | 9,346 |
| Bonus Provisions | 21,000 | 21,750 |
| Total Current Liabilities | 690,201 | 1,036,991 |
| Total Liabilities | 690,201 | 1,036,991 |
| Net Worth | ||
| Stockholder Capital | 164,130 | 164,130 |
| Capital Surplus | ||
| Capital Reserves | 319,363 | 319,363 |
| Total Capital Surplus | 319,363 | 319,363 |
| Profit Surplus | ||
| Misc. Profit Surplus | ||
| Special Reserves | 710,000 | 710,000 |
| Transferred Profit Surplus | 1,276,672 | 1,978,607 |
| Profit Surplus Total | 1,986,672 | 2,688,607 |
| Treasury Stock | n/a | ▲36 |
| Total Stockholder Capital | 2,470,165 | 3,172,064 |
| Total Net Worth | 2,470,165 | 3,172,064 |
| Total Liability Net Worth | 3,160,369 | 4,209,056 |
| Financial Statements – Profit and Loss Statement(At 10,000 yen increments) | ||
|---|---|---|
| 2013 | 2014 | |
| Sales | ||
| Product Sales | 1,499,470 | 1,895,100 |
| Royalty Income | 341,041 | 646,075 |
| Total Sales | 1,840,512 | 2,541,175 |
| Sales Cost | ||
| Product Sales Cost | 439,128 | 545,394 |
| Sales Cost Total | 439,128 | 545,394 |
| Overall Sales Profit | 1,401,384 | 1,995,781 |
| Distribution and Administrative Costs | ||
| Freight Costs | 18,363 | 14,671 |
| Advertising Expenses | 67,331 | 84,672 |
| Promotional Expenses | 43,893 | 49,722 |
| Executive Pay | 57,380 | 51,296 |
| Salary and Benefits | 20,657 | 51,255 |
| Bonuses | 2,413 | 4,861 |
| Bonus Reserves Carried Over | 1,940 | 2,340 |
| Legal Welfare Costs | 12,344 | 12,661 |
| Hiring Fees | 12,863 | 12,545 |
| Utility Costs | 1,235 | 1,170 |
| Commission Payment | 34,718 | 36,909 |
| Supplies Expenses | 2,337 | 1,616 |
| Traveling Expenses | 1,598 | 1,499 |
| Postage | 645 | 634 |
| Depreciation Costs | 1,919 | 1,582 |
| Research and Development Expenses | 400,722 | 382,962 |
| Other Expenses | 10,364 | 13,258 |
| Total Distribution and Administration Costs | 690,730 | 693,661 |
| Operating Profit | 710,653 | 1,302,120 |
| Earnings Outside of Business Operations | ||
| Interest Receipts | 400 | 470 |
| Exclusion of Unpaid Dividends | 499 | 702 |
| Total Earnings Outside of Business Operations | 899 | 1,173 |
| Net Income Before Taxes | 711,521 | 1,303,223 |
| Corporation, Municipal, and Enterprise Taxes | 301,758 | 538,456 |
| Adjustment of Corporation and other Taxes | ▲26,162 | ▲9,127 |
| Total Corporation and Other Taxes | 275,595 | 529,328 |
| Current Net Income | 435,926 | 773,895 |
[ Falcom’s Fiscal Year Financial Report (PDF) ]
[ Explanatory Power Point on the FY Report (PDF) ]
I guess that deconfirms sen 3 (or any series continuation) for next year.
I don’t think there was really any figuring of Sen 3 being next year, with the announcement of Ys 8 in 2015. Falcom generally releases one big game a year, so they have to drop Ys into the lineup somewhere.