TOKYO, Apr 13 (Pulse News Wire) – WonderPlanet Inc. (4199.T) announced today that its board of directors, held, resolved to record a special loss due to asset impairment in its fiscal 2026 August interim quarter results.
The decision was made following a reassessment of future revenue forecasts based on recent market trends and competitive environments affecting the mobile gaming sector. In 2022, the company dissolved its business partnership with United Kabushiki Kaisha's subsidiary Plus You Kabushiki Kaisha concerning the game title "Crash Fever," resulting in the acquisition of fixed assets such as operating rights. Despite being a key revenue driver for nearly a decade, the performance metrics of Crash Fever have fallen below initial projections due to changing market conditions. After evaluating marketing investments and operational adjustments, the company concluded that the carrying value of the operating rights should be reduced to recoverable amount, leading to a reduction of ¥81 million recorded as a special loss in the second quarter of the fiscal year ending August 2026.
This accounting adjustment does not impact the company’s cash flow or ongoing operations. Moving forward, Crash Fever remains a cornerstone title for WonderPlanet, and efforts will continue to maximize profitability through strategic management. As a result of this impairment charge, WonderPlanet expects a decrease in pre-tax net income by ¥81 million for the second quarter of fiscal 2026. However, the reduction in depreciation expenses associated with the impaired asset is anticipated to boost overall operating profit by ¥34 million in the second half of fiscal 2026 and by ¥46 million for the entire fiscal year 2027.
While WonderPlanet has not disclosed its full-year earnings forecast for fiscal 2026, the company plans to release updated predictions once sufficient data becomes available to ensure accurate and reasonable estimates.
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