Consolidated Financial Results: 9 Months Ended December 31, 2010

Key insights

7 takeaways

01
Capcom achieved significant growth for the nine-month period ending December 31, 2010, with net sales rising 41.6% to 70,773 million yen and net income surging 294.8% to 6,836 million yen.See it on page 1
02
Operating income increased by 165.1% to 12,769 million yen, largely fueled by the release of Monster Hunter Freedom 3, which shipped over 4 million units, and the international performance of Dead Rising 2.See it on page 5
03
The Consumer Online Games segment served as the primary revenue driver, contributing 54,057 million yen in sales and 12,941 million yen in operating income.See it on page 14
04
Capcom successfully diversified its revenue streams by pivoting toward social and mobile gaming platforms, including distribution via Mobage-town and Facebook.See it on page 4
05
Overseas sales grew to represent 30.2% of total consolidated net sales, an increase from 28.2% during the same period in the previous fiscal year.See it on page 15
06
The company maintains a stable financial position with total assets of 91,144 million yen and a shareholders' equity ratio of 62.2%.See it on page 1
07
Management reaffirmed its full-year earnings forecast for the fiscal year ending March 31, 2011, projecting 91,000 million yen in net sales and 6,500 million yen in net income.See it on page 1

Summary

Capcom’s consolidated financial results for the nine-month period ending December 31, 2010, demonstrate significant growth in both sales and profitability compared to the same period in the previous fiscal year. The company reported net sales of 70,773 million yen, representing a 41.6% increase, while operating income rose by 165.1% to 12,769 million yen. Net income saw a substantial surge of 294.8%, reaching 6,836 million yen. These results were driven primarily by the strong performance of key consumer titles, most notably the release of Monster Hunter Freedom 3, which achieved over 4 million units in shipments, and the successful international performance of Dead Rising 2.

The company’s operations are categorized into four primary segments: Consumer Online Games, Mobile Contents, Arcade Operations, and Amusement Equipments. The Consumer Online Games segment remained the dominant revenue driver, contributing 54,057 million yen in sales and 12,941 million yen in operating income. While the broader video game industry faced challenges such as a stagnant market and shifting consumer demographics, Capcom successfully pivoted toward social gaming and mobile platforms, including the distribution of titles via platforms like Mobage-town and Facebook.

Geographically, the company expanded its reach, with overseas sales accounting for 30.2% of total consolidated net sales, up from 28.2% in the prior year. The financial position remains stable, with total assets reaching 91,144 million yen and a shareholders' equity ratio of 62.2%. The company maintained its full-year earnings forecast, projecting net sales of 91,000 million yen and net income of 6,500 million yen for the fiscal year ending March 31, 2011. These results reflect a strategic focus on high-performing franchises and the diversification of revenue streams through digital and mobile content.