Bank of Innovation, Inc.
4393・Growth Market・Information & Communication
Business
Bank of Innovation, Inc. is a smartphone app development and operations company established in 2006 and listed on the TSE Growth Market. Under its corporate philosophy of being "the entertainment company that creates the most memories in the world," it develops and simultaneously releases games worldwide based on its own original IP. Its flagship title is the idle RPG "Memento Mori," which began distribution in October 2022 and has surpassed 4 million cumulative downloads, accounting for 94.5% of net sales. The company also operates the gamified dating app "Koitei" (cumulative downloads exceeding 3 million), run by its consolidated subsidiary Koiniwa, Inc. Its main customer base consists of active gamers familiar with smartphones, home video game consoles, and PC games.
Business Model
The company distributes game apps free of charge through platforms such as Google Play and the App Store, generating its primary revenue from sales of paid in-game items (microtransaction revenue). After deducting platform fees (cost of sales), the company generates profit by managing SG&A expenses such as advertising and personnel costs. In addition, royalty income from licensing the use of its proprietary IP to other companies is positioned as another revenue source, contributing to revenue diversification.
Company Strengths
In FY2025 (ending September 2025), selling, general and administrative expenses decreased 24.8% year on year to ¥3,844 million, driven mainly by reductions in advertising expenses. Despite a 9.2% decline in net sales, operating profit increased 62.0% to ¥2,154 million. The operating margin improved substantially from 9.8% in FY2024 to 17.4% in FY2025.
The company positions its continuously operated PDCA cycle—covering user trend analysis, identification of factors driving KPI fluctuations, KPI tracking after new feature implementation, and competitor analysis—as the source of its operational strength. "Memento Mori" has continued service for three years since launch, and its third-anniversary campaign achieved a 12.3% increase in revenue compared with the immediately preceding quarter, demonstrating an accumulated track record of long-term operation.
As of the end of FY2025 (ending September 2025), total assets stood at ¥7,943 million against net assets of ¥5,816 million (equity ratio of approximately 73%). Operating cash flow turned from an outflow of ¥1,716 million in the previous period to an inflow of ¥2,867 million, with cash and cash equivalents reaching ¥5,212 million. The company maintains a near debt-free financial structure, securing capacity for investment in new development.
ENVALITH's Perspective
Performance Trend
Annual net sales peaked at ¥21,333 million in FY2023, followed by continued adjustment to ¥13,615 million in FY2024 and ¥12,366 million in FY2025, and the downward trend continued in H1 FY2026 (ending September 2026) at ¥6,172 million (down 6.2% year on year). Meanwhile, profitability improved markedly, with operating profit of ¥1,152 million (up 13.4%), ordinary profit of ¥1,164 million (up 12.7%), and net profit of ¥827 million (up 74.0%). The large increase in net profit was also aided by a reduction in the corporate tax burden compared to the same period of the prior year (from ¥557 million to ¥336 million). On the financial side, the equity ratio rose to 79.9%, and cash and cash equivalents remained ample at ¥5,614 million. As an external factor, it should be noted that a pause in personal consumption due to price increases and risks related to U.S. trade policy could affect the business environment.
Growth Strategy
Three pillars: strengthening the flagship IP, global rollout of new original IPs, and diversification of revenue sources
The company aims to maintain user engagement through event campaigns such as year-end and New Year initiatives, while improving quality through strengthened development capabilities. In the current interim period, sales declined year on year due to the passage of time since launch, but event initiatives have yielded a certain level of effect.
The company is engaged in planning and developing multiple new smartphone apps aimed at medium- to long-term revenue diversification. Cost of sales has increased due to upfront investment from strengthened development capabilities, and development investment continued in the current interim period. Specific release timing and title details have not been disclosed.
Under a "quality first" policy, the company is promoting simultaneous worldwide operation of high-quality games and services, along with global IP expansion. It has set a goal of multiplying annual net sales several-fold every few years, and is concurrently pursuing diversification of revenue sources through IP licensing (royalty) income.
Last updated: July 17, 2026