Japanese video game developer SNK Corporation recently published their financial results for the fiscal year ending December 2025.
While revenue went up by 10.0%, the company suffered an operating loss of 19.9 billion yen (about $125.2 million USD), an ordinary loss of 21.5 billion yen ($135.3 million USD) and a net loss of 22.2 billion yen ($139.7 million USD), showing a significant downwards trend compared to the previous fiscal period. For reference, in the fiscal year ending December 2025, the company reported an operating loss of 12.6 billion yen ($79.3 million USD), an ordinary loss of 12 billion yen($75.5 million USD) and a net loss of 12.9 billion yen ($81.2 million USD) (source: GameBiz).
In November last year, SNK announced that it would reduce its capital stock and capital reserve by 8 billion yen each, likely to reduce its accumulated losses. However, while that did help the company increase its capital, it is still in a state of insolvency. Insolvency refers to a temporary state of financial distress and is not equal to or indicative of bankruptcy.
Subsequently, SNK raised funds through a loan from its parent company, Electronic Gaming Development Company – a total of $40 million USD. The loan is expected to be repaid in a lump sum in October 2029, with an interest rate of 7.28%.
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