Gonzo's Earnings Rise, But So Do Losses in Annual Results
posted on by Egan Loo
The anime production studio Gonzo (formerly GDH) has announced on Wednesday its financial results for the fiscal year ending in March of 2009. The announcement was delayed by half a month from when it was originally planned. The company earned 6.332 billion yen (about US$65.7 million) during the year — an increase over its earlier estimate of 6.1 billion yen (US$63 million), but actual losses were much larger than previously estimated.
Gonzo's auditor, BA Tokyo & Co., did not offer a written evaluation on Gonzo's financial records, which is an indication of the company's grave state. BA Tokyo did point out that Gonzo's ability to repay its debts is limited as it faces insolvency due to its losses.
The annual operating loss, ordinary loss, and actual losses were pegged at 2.12 billion yen (US$22 million), 2.351 billion yen (US$24.4 million), and 3.401 billion yen (US$35.3 million), respectively — all representing an increase from the previous year. Gonzo cited the declining DVD market and the grave conditions of the North American market for the differences between its estimates and the actual numbers. The animation operations of Gonzo earned 4.005 billion yen (US$41.6 million) but still lost 1.597 billion yen (US$16.6 million) in the end.