GALA INCORPORATED
4777・Standard Market・Information & Communication
Business
GALA, Inc. is a company listed on the Tokyo Stock Exchange Standard Market, founded in 1993. Comprising seven consolidated subsidiaries, the group is centered on its Korean subsidiary Gala Lab Corp., which licenses the MMORPGs "Flyff Online" and "Rappelz Online" and operates the HTML5 game "Flyff Universe" globally, in addition to running a smartphone app business. The Korea Segment accounts for 96% of net sales, with a distribution network spanning more than 20 countries across North America, Europe, Asia, and the Middle East. In Japan, the group handles head-office administrative functions, cloud-related business, and the Treehouse Resort business, and also operates the VFX Business (ROAD101 Co., Ltd.) and the Meta Campus business (metaverse campus), making it a diversified internet service group.
Business Model
The company's core revenue sources are licensing/publishing revenue from its self-developed MMORPG titles (Flyff and Rappelz) and direct-operation billing revenue from the HTML5 game "Flyff Universe" (41.2% of net sales). The Online Game Business (21.6%) secures stable revenue through channeling and licensing agreements, while the Smartphone App Business (13.1%) earns in-app purchase and advertising revenue. The VFX Business (13.3%) generates contract-based production revenue on an order-received basis. In the cloud-related business, revenue is derived from support service fees charged to the Megazone group of companies.
Company Strengths
"Flyff Online" and "Rappelz Online" are in-house developed MMORPG titles that have recorded a cumulative 50 million downloads worldwide. These IPs can be horizontally deployed into HTML5 games, smartphone apps, and NFT games, and the existing user base and brand recognition create a cost advantage for new business expansion.
The company has a track record of distribution in more than 20 countries across North America, Europe, Asia, Oceania, the Middle East, and elsewhere, and has established a multilingual development and support system covering English, Korean, Chinese, German, French, Spanish, Arabic, Russian, and other languages. In October 2025, it obtained a game license (banhao) for "Flyff Universe" from the Chinese government, achieving expansion into mainland China.
"Flyff Universe," which launched service in May 2022, recorded revenue of ¥1,066,835 thousand (41.2% of total) in the current fiscal year, making it the group's largest revenue source. It offers high accessibility, requiring no download and supporting both PC and smartphones, and has established a global publishing framework through a strategic partnership with Wemade Connect Co., Ltd.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years peaked at ¥2,589 million in FY2023 (ended December 2023) and had remained sluggish since, but accelerated in 1Q FY2026 to ¥535 million (up 13.2% from ¥473 million in the same quarter of the prior year). Operating loss narrowed sharply to ¥24 million from ¥130 million in the same quarter of the prior year, and ordinary profit turned positive at ¥25 million. The improvement was driven by revenue growth across all major businesses—the HTML5 game business (up 55.0% year-on-year), the online game business (up 24.2%), and the smartphone app business (up 22.1%)—as well as a reduction in cost of sales (down 18.4% year-on-year) following the discontinuation of the VFX Business. However, a net loss of ¥13 million continued due to the recording of an impairment loss of ¥20 million and an expense of ¥21 million related to deferred income tax adjustments. Comprehensive income also came to ¥(59) million, weighed down by a deterioration in the foreign currency translation adjustment account of ¥(40) million. As an external factor, the weaker Korean won generated a foreign exchange gain of ¥48 million, but this same factor had a dual-edged effect, also pressuring comprehensive income.
Growth Strategy
Growth through global expansion of HTML5 games, monetization of NFT games, and selection-and-concentration via divestment of unprofitable businesses
Preparations for the release of the flagship HTML5 game "Flyff Universe" in the China region are ongoing. Through expansion of the service area, the company aims to acquire new paying users and further expand net sales. In 1Q FY2026, the HTML5 game business grew rapidly, up 55.0% year on year, and if the China release is realized, additional revenue contribution is expected.
The company is preparing a global release of "Rappelz Universe," developed by Gala Lab Corp., as an NFT game/blockchain game. It is proceeding carefully with a review of legal and tax aspects related to crypto assets within Korea, and aims to release the game after regulatory compliance is completed. The Play To Earn (P2E) elements are expected to enable the construction of a new revenue model.
Development of the framework for an HTML5 game utilizing Wemade Play Co., Ltd.'s "AniPang" IP is progressing as planned. In addition, through a strategic alliance with BPMG Co., Ltd. and Wemade Connect Co., Ltd., the company is advancing development of an NFT game version of "Flyff Universe" that combines blockchain technology. The company aims to diversify revenue through the fusion of new IP with existing IP.
The VFX Business (ROAD101 Co., Ltd.) has become extremely difficult to continue due to the rise of generative AI video technology, and net sales in 1Q FY2026 were zero. The company is proceeding with a review that includes fundamental restructuring and continuation of the business. Regarding the Treehouse Resort business (Treeful Co., Ltd.), a resolution was made on April 30, 2026 not to exercise the new share subscription rights, and exclusion from the scope of consolidation is expected. The company aims to concentrate management resources on its core smartphone app business and online game business.
Last updated: July 17, 2026