Bank of Innovation, Inc.
4393・Growth Market・Information & Communication
Smartphone App Business (Single Segment)
Smartphone app development and operation business centered on the flagship idle RPG "Memento Mori"
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (cumulative for the interim period) | ¥6,172 million | ¥6,584 million (prior interim period) | ↓ |
| Operating profit (cumulative for the interim period) | ¥1,152 million | ¥1,016 million (prior interim period) | ↑ |
| Ordinary profit (cumulative for the interim period) | ¥1,164 million | ¥1,033 million (prior interim period) | ↑ |
| Interim net income attributable to owners of parent | ¥827 million | ¥475 million (prior interim period) | ↑ |
| Gross profit (cumulative for the interim period) | ¥2,746 million | ¥3,401 million (prior interim period) | ↓ |
| Selling, general and administrative expenses (cumulative for the interim period) | ¥1,593 million | ¥2,385 million (prior interim period) | ↓ |
| Equity ratio | 79.9% | 73.2% (end of prior fiscal year) | ↑ |
| Interim net income per share | ¥208.30 | ¥119.68 (prior interim period) | ↑ |
| Total assets | ¥8,312 million | ¥7,943 million (end of prior fiscal year) | ↑ |
| Net assets | ¥6,644 million | ¥5,816 million (end of prior fiscal year) | ↑ |
Business Details
The Group is a single-segment company that provides smartphone apps on platforms such as Google Play and the App Store. Its flagship title "Memento Mori" (launched in October 2022) accounts for the majority of revenue. The company adopts a free-to-play, in-app purchase model and is promoting the global rollout of its proprietary original IP. It also operates the matching app "Koitei", run by its consolidated subsidiary Koiniwa Inc. Under a policy of "quality first", the company is also working on the planning and development of multiple new apps.
Recent Overview
Despite lower sales, interim net income rose 74% on reduced advertising expenses and a lighter corporate tax burden
Net sales for the second quarter (interim period) of FY2026 (ending September 2026) were ¥6,172 million (down 6.2% year on year), declining due to the aging effect on "Memento Mori". On the other hand, while cost of sales increased from ¥3,182 million to ¥3,426 million due to upfront investment from strengthening the development organization, selling, general and administrative expenses—mainly advertising expenses—were significantly reduced from ¥2,385 million to ¥1,593 million, improving operating profit to ¥1,152 million (up 13.4% year on year). Corporate income taxes and other taxes also decreased from ¥557 million to ¥336 million, resulting in a substantial increase in interim net income to ¥827 million (up 74.0% year on year). On the financial side, securities increased from ¥1,200 million to ¥2,700 million, and the equity ratio rose to 79.9%. Full-year earnings guidance remains undisclosed.
Key Products
Growth Drivers
- Improved user engagement in "Memento Mori" through events such as year-end and New Year campaigns
- Improved profit margin through cost-effectiveness management of advertising expenses (SG&A expenses down 33.2% and operating profit up 13.4% for the current interim period)
- Global expansion of proprietary original IP (simultaneous worldwide release and in-house distribution policy)
- Medium- to long-term revenue diversification through the planning and development of multiple new apps
- Diversification of revenue sources through IP licensing (royalty) income
Risks
- Risk of dependence on a single title due to revenue concentration in the flagship title "Memento Mori"
- High platform dependency risk on two companies, Apple Inc. and Google LLC (impact of fee changes and terms of service changes)
- Intensifying competition due to the maturation of the smartphone game market and entry of overseas developers
- Declining sales of existing titles due to aging (net sales for the current interim period down 6.2% year on year)
- Risk that upfront investment from strengthening the development organization (increased cost of sales) may outpace sales recovery
- Risk of development delays or failure to meet quality standards for new titles (policy of not setting deadlines for development periods)
- Low earnings visibility for investors due to non-disclosure of full-year earnings guidance, citing rapid industry change and the need for agile investment decisions
- Risk of service suspension due to system failures or security incidents
Last updated: December 25, 2025