Record-high net sales and operating income in the first half of FY2021.
The group reorganization to accelerate the growth of Enterprise Business.
In the first half of FY2021, both Enterprise Business and Entertainment Business performed well. By strengthening cross-selling of our diverse services, such as manual testing, test automation, and vulnerability diagnosis, Enterprise Business has steadily captured increasing demand due to the acceleration of DX and the shortage of IT personnel. We are also strengthening collaboration among our group companies, including LogiGear in the U.S. with strengths in test automation, identity Inc. which we acquired in June 2021, and other existing domestic subsidiaries by sharing knowledge of software testing service and labor resources such as testing engineers. Meanwhile, in Entertainment Business, we steadily acquired new projects in the booming console game market. At the same time, we strengthened collaboration with DIGITAL HEARTS CROSS Group, which joined our group in March 2021, and worked to cultivate new clients including game makers in China and expand transactions with existing clients.
As a result, net sales for the first half of FY2021 were ¥13,498 million (YoY 128.2%) and operating income was ¥1,370 million (YoY 259.7%), both record highs as the first half of the fiscal year. These results have exceeded our original forecasts at a good pace to achieve our full year targets.
We have also set a medium-term target of ¥50.0 billion in sales for FY2023. In order to achieve this goal, we believe that we will need to accelerate the growth pace of our focusing Enterprise Business. Accordingly, we have decided to spin out Enterprise Business Department from DIGITAL HEARTS Co., Ltd., our mainstay subsidiary, and to form “Next-Generation QA company” (*), which will be the core company that drives the entire Enterprise Business of our group.
“Next-Generation QA company” will establish a new "tech" brand that differs from the color of "game / entertainment" that our group has developed in the game industry, and aim to be an attractive group in which leading-edge engineers and IT specialists gather naturally. Furthermore, in order to develop and provide innovative QA solution services, we will strive to research cutting-edge technologies and foster QA engineers responding to these new technologies, in collaboration with industry experts, universities and research institutes in Japan and overseas.
Additionally, through the reorganization, I will become the president of “Next-Generation QA company”, and our executive vice president, Toshiya TSUKUSHI, will become the president of DIGITAL HEARTS. In this way, we will pursue further growth while maintaining an optimal balance between the independence of Enterprise and Entertainment Business and the cohesiveness of the Group as a whole.
Through these initiatives, with our Group mission of "SAVE the DIGITAL WORLD," we are aiming to evolve into an indispensable presence in the digital society.
We look forward to your continued understanding and support.
November 9, 2021
President and CEO Yasumasa Ninomiya
*QA…Abbreviation of “Quality Assurance”