Colopl's profit decreased due to payments in favor of Disney
Japanese mobile publisher Colopl reported a drop in net profit in the first fiscal quarter of 2018 (lasted from October to December 2017). The main reason for the decline was the payment of royalties to Disney Corporation after the release of the puzzle Disney Tsum Tsum Land.
The launch of the title on someone else’s franchise increased Colopl’s royalty expenses by + 249% compared to the same period last year. According to the results of the last reporting period, the company spent $4.8 million on these payments.
In addition, Colopl has increased the costs of data center maintenance and outsourcing involved in the development of new titles.
Colopl’s financial results for the last quarter:
- revenues of $114.8 million (-14.2%)
- net profit of $12.6 million (-50.1%)
Despite the decline in performance, the company noted the strong start of Disney Tsum Tsum Land. Colopl noted that Disney Tsum Tsum Land’s revenues partially offset the costs of events dedicated to the 4th anniversary of the company’s flagship title, the White Cat Project mobile role-playing game.
The publisher has started developing two new games and is planning further collaborations with other brands.
Colopl also reported that the results of the 1st quarter of 2018 in terms of sales and operating profit amounted to 25% of the expected annual.
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