WonderPlanet Inc. Q4 FY2025 earnings call

• Corporate Strategy Update

  • Updated vision: Become a Japan-origin mobile casual game company that captivates global users' spare time through technology, with the core mission of delivering THE JAPAN IP to the world.
  • Focus: Leverage proven development track record and technical foundation to maximize the global value of top Japanese IP, becoming the most trusted development partner for Japanese IP holders.
  • Market context: Overseas sales of Japanese content reached 5.7 trillion yen in 2023, becoming Japan's second largest industry after automotive; 7 of the top 17 global media franchises are Japanese IP, confirming strong global competitive advantage for Japanese content.

• New Title Development Status

  • Jump+ Jumbo Rush (developed for Bandai Namco Entertainment) launched on September 24, 2025 as scheduled.
  • HUNTER×HUNTER NEN×SURVIVOR, co-developed with Bushiroad, was officially announced and is currently in active development for a simultaneous global launch in 2026.
  • Future new titles will continue to prioritize high-profile licensed Japanese IP projects.

• Development and Operational Efficiency

  • SEED shared development platform is continuously updated to enable industry-leading low-cost, fast-track, high-quality game development and operation for new projects.
  • New project structure: Adopt a cost-sharing model for new large-scale IP projects that limits Wonder Planet's upfront capital outlay, enables participation in larger projects beyond the firm's standalone investment capacity, and delivers steady long-term profit growth leveraging the firm's proven long-term operation capabilities.
  • Productivity initiatives: Full-company remote work infrastructure enables company-wide adoption of AI tools; AI is used to improve both product quality and operational efficiency, with enterprise AI guidelines currently under development to build sustainable competitive advantage.

Wonder Planet operates only a single mobile game business segment. Q4 FY2025: Total revenue of 674 million yen, up 41% quarter-over-quarter, with operating profit of 44 million yen (returned to profit). Full year FY2025: Total revenue of 2.316 billion yen, down 5.4% year-over-year, with an operating loss of 129 million yen (swung to a loss from the prior year's profit). In Q4 FY2025, existing title Crash Fever drove revenue growth from its 10th anniversary event, and development and operation revenue for new titles hit 240 million yen in line with project progress. The original title Pandorand missed sales expectations significantly, dragging down full year operating results.

• Full year FY2026 (ending August 2026): Management targets full-year operating profitability, even as it continues development investment for new pipeline projects, prioritizes delivering commercial results from new titles, and expects these new projects to contribute to full-year performance.
• Financial forecast for FY2026 is currently non-public; management will disclose a detailed forecast once a reasonable and accurate projection can be provided. A zero-dividend payout is planned for FY2026, as the firm prioritizes rebuilding retained earnings.
• Q1 FY2026 forecast: Expects year-over-quarter revenue and profit decline driven by a post-10th-anniversary pullback in Crash Fever revenue and continued development investment; overall costs are expected to remain roughly flat relative to Q4 FY2025.
• Crash Fever FY2026 expectation: Expects a year-over-year revenue decline due to natural KPI decay, but continued contribution to operating profit through optimized marketing spend and adjusted operational structure.
• Development pipeline: Will continue development of HUNTER×HUNTER NEN×SURVIVOR in preparation for 2026 global launch, and continue supporting operations for launched Jump+ Jumbo Rush.

• Pandorand significantly missed sales projections in FY2025, resulting in a larger than expected full-year operating deficit despite cost-cutting and marketing adjustments.
  • Development of large-scale IP titles carries execution and commercial uncertainty, with returns from new projects not guaranteed to meet internal expectations.
  • Continued heavy investment in new title development could pressure short-term profitability if new launches do not deliver expected revenue contributions on schedule.

Q: What is the top reason major IP holders award development contracts to Wonder Planet?

A: Management states that long-standing executive-level relationships and networks with decision-makers at top Japanese IP holders are the core competitive advantage. Regular information exchange via these existing connections has consistently delivered new co-development opportunities, and the firm will continue this strategy going forward.

Q: What level of performance does management expect from HUNTER×HUNTER NEN×SURVIVOR?

A: Management cannot disclose specific financial details due to non-disclosure agreements, but frames the project as a potential strategic turning point that could meaningfully increase the firm's profit scale. The entire company is focused on delivering a successful launch for this high-profile Japanese IP, with a simultaneous global release scheduled for 2026.

Q: What is the framework for profit control and expected earnings composition in FY2026's target of operating profitability?

A: Management confirms that new title performance will be the primary driver of FY2026 results, and investors should focus on new title development progress. The firm will adjust investment levels for long-running existing titles like Crash Fever based on new project progress, to maintain overall annual profit control and hit the full-year operating profit target across different new title outcome scenarios.