Gung Ho Online Entertainment Posts First Half Results: +4331% Operating Profit; Could They Buy Atlus?
Gung Ho Online Entertainment is in extremely good shape, as shown by the financial results for the first half of the year (from January the 1st to June the 30th) posted today. According to the official documentation the company cashed in 74,621,000,000 Yen in sales ( about $763,000,000) with a year on year increase of +945%.
Operating profits were up 4331%, with a result of 45,154,000,000 Yen (about $460,000,000). Net profits were up 2508% with a final result of 28,179,000,000 Yen (about $288,000,000).
The extremely strong results are mostly due to microtransactions on the mobile game Puzzle & Dragons, that reached 16 million downloads by June the 29th and continues to offer very solid traction for the company’s finances.
The financial health of Gung Ho Online Entertainment could easily mark the company as a front runner for the acquisition of Atlus, since they repeatedly expressed the interest in purchasing more local studios ( the already own Grasshopper Manufacture Game Arts and Acquire, on top of the Korean developer Gravity) and to expand in the western market. To that end acquiring Atlus USA would also be advantageous. Considering the profits they posted, an acquisition of the whole Atlus/Atlus USA package would definitely not be out of reach.
While a few days ago I argued Kadokawa Games as the perfect candidate for the acquisition of the house of Persona, Gung Ho Online Entertainment has a very similar structure and standing in the market, and similar aims of expansion both locally and worldwide, making it another very solid candidate, especially in light of today’s financial results. It would also guarantee the preservation of Atlus’ position as a third party, which would definitely be the best option for the developer’s future.