Capcom Consolidated Financial Results: Q1 Fiscal Year Ending March 31, 2013

Key insights

7 takeaways

01
Capcom's Q1 net sales rose 55.8% year-over-year to 18,620 million yen, and operating income surged 244.4% to 2,669 million yen.See it on page 5
02
Ordinary income grew 304.5% and net income grew 290.2% compared with the same period the prior year.See it on page 9
03
The Digital Contents segment drove growth, posting net sales of 13,740 million yen and operating income of 2,401 million yen, helped by the domestic success of the open-world title Dragon's Dogma.See it on page 4
04
Social game expansion pushed Capcom's registered social network service users past 2 million.See it on page 4
05
The Arcade Operations segment declined in both sales and operating income, hurt by a shortage of alternative products and lingering effects of the previous year's earthquake.See it on page 5
06
The Amusement Equipments business grew net sales 96.6% to 1,711 million yen.See it on page 5
07
Capcom maintained its full-year forecast of 105,000 million yen in net sales and 9,800 million yen in net income, with a stable balance sheet (total assets of 91,898 million yen and a 63.4% shareholders' equity ratio).See it on page 5

Summary

Capcom’s consolidated financial results for the first quarter of the fiscal year ending March 31, 2013, demonstrate significant growth across key performance metrics compared to the same period in the previous year. Net sales reached 18,620 million yen, representing a 55.8% increase, while operating income surged by 244.4% to 2,669 million yen. Ordinary income and net income also saw substantial gains, rising by 304.5% and 290.2%, respectively. These results reflect a successful period of operations despite a challenging global market environment, particularly within the arcade and overseas home video game sectors.

The primary driver of this growth was the Digital Contents business, which reported net sales of 13,740 million yen and operating income of 2,401 million yen. This segment benefited from the domestic success of the open-world title Dragon’s Dogma and the continued expansion of social game offerings, which helped the company surpass 2 million registered social network service users. Conversely, the Arcade Operations segment faced headwinds, including a shortage of alternative products and the lingering effects of the previous year’s earthquake, resulting in a decline in both sales and operating income. The Amusement Equipments business performed strongly, with net sales rising 96.6% to 1,711 million yen.

The company maintained its full-year earnings forecast, projecting net sales of 105,000 million yen and net income of 9,800 million yen. Financial position remains stable, with total assets of 91,898 million yen and a shareholders' equity ratio of 63.4%. During this period, Capcom implemented a change in depreciation methods for tangible fixed assets to align with revised tax regulations, though this adjustment did not significantly impact quarterly profit or loss.