Capcom: Summary of Consolidated Financial Results for the 1st Quarter of the Fiscal Year Ending March 31, 2008

Key insights

6 takeaways

01
Capcom achieved strong Q1 growth for the fiscal year ending March 31, 2008, with net sales rising 35.1% to 14,277 million yen and operating income increasing 57.2% to 2,075 million yen.See it on page 2
02
The home video game segment was the primary growth driver, recording a 74.7% year-over-year increase in net sales to 7,914 million yen, fueled by titles like Phoenix Wright 4 and Monster Hunter Freedom 2nd.See it on page 2
03
The contents expansion segment saw significant gains, with net sales growing 328.3% and operating income surging 648.8% due to mobile game distribution and Pachislo machine peripherals.See it on page 2
04
Arcade operations faced a 34.5% decline in operating income, driven by increased market competition and new regulatory restrictions on minor access during evening hours.See it on page 2
05
The arcade games segment recorded an operating loss of 167 million yen, attributed to a lack of new product releases and overall market softening.See it on page 2
06
Capcom maintained a stable financial position throughout the quarter, reporting total assets of 87,364 million yen and a shareholder equity ratio of 52.8%.See it on page 1

Summary

Capcom’s consolidated financial results for the first quarter of the fiscal year ending March 31, 2008, demonstrate significant growth in net sales and profitability compared to the same period in the previous year. The company reported net sales of 14,277 million yen, representing a 35.1% increase, while operating income rose by 57.2% to 2,075 million yen. Ordinary income and net income also saw substantial gains, increasing by 79.0% and 39.7%, respectively. These results reflect the company’s strategic focus on its core home video game software business during a transitional period for the global console market.

The home video game segment served as the primary driver of this performance, with net sales reaching 7,914 million yen, a 74.7% increase year-over-year. Key titles such as Phoenix Wright 4 for the Nintendo DS and the continued popularity of Monster Hunter Freedom 2nd for the PlayStation Portable were instrumental in this growth. Additionally, the contents expansion segment experienced a sharp rise in performance, with net sales growing by 328.3% and operating income increasing by 648.8%, largely supported by mobile game distribution and Pachislo machine peripherals.

Conversely, other segments faced challenges. The arcade operations segment saw a 34.5% decline in operating income due to intensified competition and regulatory restrictions on the entry of minors into arcades during evening hours. The arcade games segment also struggled, recording an operating loss of 167 million yen, attributed to a lack of new product releases and market softening. Despite these localized declines, the overall financial position remained stable, with total assets of 87,364 million yen and a shareholder equity ratio of 52.8%. The company continues to navigate the evolving gaming landscape by balancing its core software development with diversified content expansion.