Endless History

Falcom’s 2017 Q3 Financial Report – Falcom’s Upward Trend for 2017 Continues

On 8/9/2017, Falcom released their earnings report for Quarter 3 (10/1/2016 ~ 6/30/2017) on their IR report page. The actual report can be found listed at the bottom of the article in PDF form. While Q3 is still a relatively quiet period for Falcom, as they are building up for their final release of the financial year in Q4, Q3 still saw several big releases. In Japan, Ys VIII was released for PlayStation 4, and both Trails in the Sky the 3rd for Steam and Tokyo Xanadu for PS Vita were released in the west.

Timeframe: 10/1/2016 ~ 6/30/2017
Percentage represents fluctuations between the quarters over the previous year.
Presented in 1 million yen increments
All conversions are approximates based on $1 = 109.9 yen (current on 8/9/2017)

 

Total Sales Operating Profit Operating Income Quarter Net Income
2017 Q3 Results 976
($8.9m)
45.6% 361
($3.3m)
143.6% 361
($3.3m)
141.2% 267
($2.4m)
154.7%
2016 Q3 Results 670
($6.1m)
? 27.4% 148
($1.3m)
? 62.9% 149
($1.4m)
? 64.5% 104
($0.9m)
? 63.0%

Additional information and number details/explanations can be found below the cut.

(In 1 yen increments)

Q3 Net Income Per Share Potential Stock Adjustment
On Q3 Net Income Per Share
2017 Q3 25.98
2016 Q3 10.20

 


 

Financial Condition

Total Assets
(1 mil yen)
Net Asset Value
(1 mil yen)
Capital-to-Asset Ratio Net Assets per Share
(1 yen)
2017 Period, Q3 4,277 4,035 94.3% 392.56
2016 Period 4,155 3,840 92.4% 373.57

(Reference) Net Worth — 2017 Q3: 4,035 million yen. 2016: 3,840 million yen.

 


 

State of Dividends
In 1 yen increments

Yearly Dividends
End of Q1 End of Q2 End of Q3 End of Term Total
2016 Period 0.00 7.00 7.00
2017 Period 0.00
2017 Forecast 5.00 5.00

Annotation: No dividend forecast adjustments based on recent announcements.

General dividend breakdown is 5 yen per share, with a commemorative additional 2 yen per share.

 


 

EOY Forecast for 2017

Total Sales Operating Profit Operating Income EOY Net Income Net Profit
per Share
1,800m yen 22.9% 750m yen 28.4% 750m yen 28.3% 500m yen 29.2% 48.64 yen

Qualitative Data Regarding the Quarterly Balance Sheet

1. Explanation of Current Business Results

This company works to create game contents and services overflowing with originality and charm, and has drawn in many customers world-wide on many different platforms.

For the manufactured goods branch during the Q3 period, users had a good reaction to the products that were released by the company itself. Games like Ys VIII -Lacrimosa of Dana- on the PlayStation Vita (released in July 2016), and Tokyo Xanadu eX+ on PlayStation 4 (released in September 2016) continued to see sales over the year. Furthermore, in May 2017, Ys VIII -Lacrimosa of Dana- was released to PlayStation 4, as well.

Further more, sales continue with Trails of Cold Steel and Trails of Cold Steel II, which have seen a total of over 1,000,000 copies sold cumulatively. This is leading in to the release of Sen no Kiseki III on the PlayStation 4, which has seen over 60,000,000 units sold worldwide.

With all of this, the sales for manufactured goods for Q3 2017 come out to 333 million yen. (A 54% increase from last year.)

Regarding licensed goods, for portable consoles Ys VIII -Lacrimosa of Dana- was released to the PlayStation Vita in Korea, and Gurumin 3D was released to the 3DS in both English and Japanese. In February 2017, Ys Origin was released in Japanese and other languages. In March 2017, Tokyo Xanadu on the PlayStation Vita and Tokyo Xanadu eX+ on PlayStation 4 were both released in Chinese, with a Korean release following up in April 2017.

In March 2017, Ys VIII -Lacrimosa of Dana- was released in both Chinese and Korean simultaneously with the Japanese release. Additionally, Ys Origin was released in Japanese and other languages to the PlayStation Vita.

To add to this, older Falcom titles are being released in English for PC, as well as continued development for the online Story RPG Akatsuki no Kiseki, and other collaborations, like Hortensia Saga, Seven Knights, Taiko no Tatsujin V Version, Lapinous Chronicle, and other titles.

With all of this, the sales for licensed goods for Q3 2017 come out to 642 million yen. (A 41.4% increase from last year.)

2. Explanation Regarding Financial Condition

(Total Assets)
Total assets at the end of Q3 are primarily affected by accounts receivable having 106 million yen, totaling the assets to 4,227 million yen. (An increase of 2.9% from the previous fiscal year.)

(Debts)
This Q3 term ended with primarily a decrease in accounts payable, totally to 2 million yen, and a decrease in unpaid government taxes coming to 88 million yen. The end total of debts is 242 million yen. (A decrease of 23.2% from the previous fiscal year.)

(Net Worth)
The net worth for Q3 comes from 71 million yen of dividend payments and 267 million yen from a quarterly net income. This totals to 4,035 million yen. (Up 5.1% from the previous fiscal year.)

3. Information Regarding Earnings Forecast and Predictions

There is nothing to announce as there are no expected changes to the earnings forecast released on 11/10/2016.

Detailed Financial Summary

Quarterly Balance Sheet

In thousand yen increments

Prev. Year (2016) Current Year (2017)
As of 6/30/2017
Property Division
Current Assets
Cash on Hand 3,812,687 3,812,639
Accounts Receivable 137,653 244,312
Manufactured Goods 1,301 1,158
Raw Materials 1,994 1,899
Misc. 42,278 50,396
Current Assets Sum 3,995,916 4,110,405
Fixed Assets
Tangible Fixed Assets 4,564 8,184
Intangible Fixed Assets 3,210 1,717
Assets from Additional Investments 152,185 157,445
Sum of Fixed Assets 159,961 167,358
Total Assets 4,155,877 4,277,763
Debt Division
Current Liabilities
Accounts Payable 22,952 20,462
Unpaid Corporate Taxes 150,838 62,316
Reward Provisions 20,250 6,000
Miscellaneous 121,549 153,547
Sum of Current Liabilities 315,590 242,326
Total Debts 315,590 242,326
Net Worth Division
Shareholder Equity
Capital Stock 164,130 164,130
Capital Surplus 319,363 319,363
Profit Surplus 3,356,910 3,552,061
Treasury Stock ? 117 ? 117
Sum of Shareholder Equity 3,840,286 4,035,437
Sum of Net Worth 3,840,286 4,035,437
Liabilities and Net Worth Sum 4,155,877 4,277,763

Quarterly Profit and Loss Statement

In thousand yen increments

Prev. Q3 (2016)
10/1/2015~6/30/2016
Current Q3 (2017)
10/1/2016~6/30/2017
Sales 670,629 976,722
Cost of Sales 92,804 83,151
Sales Profit 577,825 893,571
Sales Expenses and Admin Costs 429,228 531,628
Operating Profit 141,596 361,942
Earnings Outside of Business
Received Interest 332 18
Received Dividends 572 1,155
Profits Excluded from Unpaid Dividends 702 1,046
Sum of Earnings Outside of Business 1,606 2,220
Expenses Outside of Business
Currency Exchange Losses 378 2,818
Sum of Expenses Outside of Business 378 2,818
Operating Income 149,825 361,344
Quarterly Income Before Taxes 149,825 361,344
Corporation, Municiple, and Other Enterprise Taxes 26,094 99,838
Taxes and Adjustments 18,837 ? 5,603
Sum of Corporate Taxes 44,932 94,234
Quarterly Net Profit 104,892 267,110

[ Falcom IR Report Page ]
[ Falcom 2017 Q3 Financial Statement (PDF) ]

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The webmaster, creator, and administrator of Endless History and all the sites located on esterior.net. Web developer and designer by day, translator, Kiseki crack theorist, and game streamer by night. Also, apparently a very floofy guy.

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