COLOPL, Inc.
3668・Prime Market・Information & Communication
Business
COLOPL, Inc. was established in 2008 and is listed on the Prime Market of the Tokyo Stock Exchange as a mobile game company. Under its Mission of making everyday life more enjoyable through entertainment, it consists of two segments: the Entertainment Business (net sales of ¥23,264 million) and the Investment Development Business (net sales of ¥2,668 million). The Entertainment Business is centered on smartphone native apps such as Dragon Quest Walk, Shironeko Project, and Quiz RPG: Mahoutsukai to Kuroneko no Wiz, and also extends into blockchain games and the AI/XR/metaverse domain. The Investment Development Business conducts diversified investments in IT-related and entertainment companies in Japan and Asia, generating gains on sales through group-invested funds as well. The company has 16 consolidated subsidiaries and maintains a financial base with total assets of ¥75,742 million and cash and cash equivalents of ¥45,648 million.
Business Model
The Entertainment Business is centered on a free-to-play, item-purchase model for smartphone games. Key revenue sources include payment processing via Apple Inc. and Google Inc. (¥5,837 million in total for FY2025 (ended September 2025)) and contract development for Square Enix (¥9,277 million, 35.8% of net sales). The Investment Development Business continues to generate revenue from the sale of Operational Investment Securities (Investments via Funds) through group-invested funds, centered on gains from the sale of shares such as Timee and BitStar. On the cost side, the company has been reducing outsourcing expenses and advertising expenses; cost of sales for FY2025 (ended September 2025) fell 6.6% year on year to ¥17,946 million, while SG&A expenses decreased 12.3% year on year to ¥6,984 million.
Company Strengths
Dragon Quest Walk, a joint title with Square Enix, remained strong in FY2025 (ending September 2025), with sales to Square Enix reaching ¥9,277 million (35.8% of net sales), up 4.3% year on year. A single title continues to serve as an earnings base stably supporting more than one-third of consolidated sales.
Cash and cash equivalents at the end of FY2025 (ending September 2025) stood at ¥45,648 million. Against total assets of ¥75,742 million, total liabilities were only ¥6,801 million (a liability ratio of approximately 9%), reflecting extremely high financial soundness and a financial base that can fund new title development, the Investment Development Business, and shareholder returns entirely with internal capital.
The company has built a multi-tiered investment structure through the Colopl Next Fund 1 through 8 and Digital Gemstone Fund 1 (established in June 2024). In FY2025 (ending September 2025), sales in the Investment Development Business rose 77.8% year on year to ¥2,668 million, and operating profit surged 1,187.7% year on year to ¥1,180 million, driven by share sales including those of Timee and BitStar.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥37,125 million in FY2021 and has declined for five consecutive years, continuing the downward trend with ¥10,088 million (down 28.2% year on year) in the interim period of FY2026 (ending March 2026, six months ended September 2026 (H1 FY2026)). Meanwhile, operating profit declined to ¥533 million (down 62.3% year on year) but remained in the black. The Entertainment Business returned to operating profit thanks to cost reduction effects, but the Investment Development Business sharply decelerated due to the reaction from a large-scale deal in the previous year, dragging down overall operating profit. Ordinary profit was supported by foreign exchange gains of ¥630 million (benefiting from yen depreciation as an external factor), securing ¥1,435 million. Net profit increased significantly to ¥825 million, reflecting the reaction from the ¥1,449 million valuation loss on investment securities recorded in the previous year. Cash and cash equivalents remained abundant at ¥43,300 million, and financial soundness was maintained. Full-year earnings guidance remains undisclosed.
Growth Strategy
Three pillars: strengthening operation of existing titles, developing new titles, and expanding the Investment Development Business portfolio
Continuing service operations centered on Dragon Quest Walk to enhance user engagement. Working to curb the gradual revenue decline associated with prolonged service periods while improving profitability through cost review. The Entertainment Business achieved a shift to operating profit in the first half, indicating some results have been realized.
Focusing on developing new titles to offset the gradual revenue decline of existing titles. Promoting a portfolio strategy that balances proprietary IP with third-party IP, but as of the first half, no specific revenue contribution from new titles has been disclosed, making progress difficult to confirm.
Continuing investment and divestment through investment funds targeting domestic and overseas IT-related and entertainment companies. In the first half, ¥1,290 million was spent on acquiring investment securities, while revenue was sluggish at ¥268 million and operating loss at ¥123 million due to the reversal from a large deal in the prior year. Impairment was also recorded on some held securities, with portfolio selection remaining a challenge.
In the first half, ¥273 million in business structure improvement expenses was recorded as an extraordinary loss, as structural reform across the group continues to be promoted. Cost structure improvements, including reductions in advertising expenses, contributed to the Entertainment Business's shift to operating profit, and efforts to strengthen profitability are progressing.
Last updated: July 17, 2026