Yukes slashes profit forecasts despite revenue rise on M&A costs

Yukes Co., Ltd. announced a downward revision to its consolidated earnings forecast for the fiscal year ending January 2026, alongside a reduction in its year-end dividend forecast from 13.00 yen to 10.00 yen. While the company now anticipates an increase in net sales to 4,220 million yen, exceeding the previous forecast of 3,800 million yen, largely due to the acquisition and consolidation of AQUAPLUS Co., Ltd., profits are expected to decline significantly.

The revised forecast projects operating profit at 20 million yen (down 94.3%), ordinary profit at 20 million yen (down 94.1%), and net profit attributable to parent company shareholders at 22 million yen (down 93.4%), resulting in 2.61 yen in earnings per share. This substantial profit reduction is primarily attributed to a temporary increase in outsourcing expenses and M&A-related costs.

Despite these challenges, Yukes' third-quarter consolidated results show a 19.9% increase in net sales to 2,924 million yen, reflecting a recovery in orders for its commissioned development business, particularly in the game and XR sectors. However, the company reported an ordinary loss of 6 million yen and a net loss attributable to parent company shareholders of 43 million yen for the nine-month period, consistent with the full-year profit revision.