Capcom 3rd Quarter Financial Results: Fiscal Year Ending March 31, 2011

Key insights

6 takeaways

01
Capcom reported net sales of 70,773 million yen and an operating income of 12,769 million yen for the nine-month period ending in the third quarter of the fiscal year 2011.See it on page 5
02
The consumer online games segment drove growth, highlighted by the release of Monster Hunter Freedom 3, which achieved over 4 million units sold in Japan, and Dead Rising 2.See it on page 13
03
The company successfully implemented the second stage of its structural reforms, which included integrating development divisions and expanding into the smartphone and social networking markets.See it on page 10
04
The mobile content division saw early success with the title The Smurfs' Village, contributing to growth across all business segments including arcade operations and amusement equipment.See it on page 16
05
Despite strong quarterly performance, Capcom maintained its full-year earnings forecast due to potential industry volatility and reliance on fourth-quarter results.See it on page 2
06
The company's financial position strengthened, with total assets rising to 91,144 million yen alongside a reduction in short-term borrowings.See it on page 6

Summary

Capcom’s third-quarter financial results for the fiscal year ending March 31, 2011, demonstrate significant growth in both revenue and profitability compared to the previous year. Driven by the successful launch of major consumer titles and effective structural reforms, the company reported net sales of 70,773 million yen and an operating income of 12,769 million yen for the nine-month period. These figures represent a substantial increase over the same period in 2009, reflecting strong performance across all business segments, including consumer online games, mobile content, arcade operations, and amusement equipment.

The consumer online games segment served as the primary growth engine, bolstered by the release of high-profile titles such as Monster Hunter Freedom 3, which sold over 4 million units in Japan, and Dead Rising 2. Simultaneously, the company successfully executed the second stage of its structural reforms, which involved integrating development sections and expanding its presence in the social networking service and smartphone markets. The mobile content division saw early success with titles like The Smurfs' Village, while the arcade operations segment achieved stability through rigorous cost-cutting measures and a recovery in existing facility performance.

Despite the strong quarterly results, the company maintained its full-year earnings forecast, citing the potential volatility inherent in the entertainment industry and the reliance on fourth-quarter sales performance. The financial position remains stable, characterized by an increase in total assets to 91,144 million yen and a reduction in short-term borrowings. Moving forward, the company intends to continue its global organizational integration and leverage strategic alliances to sustain its momentum in both domestic and international markets.