Capcom Results of Operations and Strategies: First Half of Fiscal Year Ending March 31, 2012

Key insights

7 takeaways

01
Capcom experienced a significant financial contraction in the first half of fiscal year 2012, with net sales falling to 29,252 million yen from 40,706 million yen in the previous year.See it on page 5
02
Operating income declined to 2,782 million yen, though the company's performance still managed to slightly exceed its revised forecasts.See it on page 21
03
The Consumer Online Games segment, Capcom's primary revenue driver, saw sales drop to 18,113 million yen due to a lack of major title releases.See it on page 5
04
The Mobile Content business grew to 2,581 million yen in sales and 903 million yen in operating income, driven by the Beeline brand and the success of Smurfs' Village.See it on page 14
05
Arcade Operations remained resilient, achieving 1,223 million yen in operating income through cost-control measures and a recovery in existing arcade sales.See it on page 16
06
Capcom aims to recover in the second half of the fiscal year by launching major titles including Monster Hunter 3 (tri-) G, Resident Evil: Operation Raccoon City, and Street Fighter X Tekken.See it on page 11
07
Strategic priorities for the remainder of the year include reorganizing North American operations and increasing focus on the social and smartphone gaming markets.See it on page 11

Summary

Capcom’s financial performance for the first half of the fiscal year ending March 31, 2012, reflects a period of contraction, primarily driven by the absence of major title launches within the Consumer Online Games segment. Net sales for the six-month period ending September 30, 2011, reached 29,252 million yen, representing a significant decline from the 40,706 million yen reported in the same period of the previous year. Operating income similarly decreased to 2,782 million yen, down from 3,942 million yen, while net income fell to 906 million yen. Despite these declines, the results slightly exceeded the company’s revised forecasts.

The Consumer Online Games segment, which serves as the company's primary revenue driver, saw sales drop to 18,113 million yen as the lack of new, high-profile releases impacted volume. Conversely, the Mobile Content business demonstrated growth, with net sales rising to 2,581 million yen and operating income reaching 903 million yen, bolstered by the success of the Beeline brand and titles such as Smurfs' Village. The Arcade Operations segment also showed resilience, with operating income increasing to 1,223 million yen due to a recovery in existing arcade sales and effective cost-control measures.

Looking toward the second half of the fiscal year, the company maintains its original full-year forecasts, anticipating a recovery through the release of major titles including Monster Hunter 3 (tri-) G, Resident Evil: Operation Raccoon City, and Street Fighter X Tekken. Strategic initiatives include the reorganization of North American operations to streamline global functions and an increased focus on social and smartphone gaming. The company continues to monitor market volatility, exchange rate fluctuations, and the performance of its upcoming software pipeline to ensure it meets its annual targets.