Capcom Financial Highlights: First Half of Fiscal Year Ending March 31, 2014

Key insights

6 takeaways

01
Capcom achieved record-breaking financial performance for the first half of the fiscal year ending March 31, 2014, with net sales reaching 53.2 billion yen and net income hitting 4.9 billion yen.See it on page 1
02
The Digital Contents segment was a primary growth driver, fueled by the release of Monster Hunter 4, which sold 2.8 million units, and increased revenue from downloadable content.See it on page 6
03
The Amusement Equipments segment contributed significantly to earnings, driven by the successful launch of the Devil May Cry 4 pachislo machine, which moved 25,000 units.See it on page 7
04
Operating income rose to 7.5 billion yen, while ordinary income grew to 8.1 billion yen, aligning with the company's strategic objectives for the fiscal year.See it on page 5
05
Arcade Operations underperformed during this period, with sales at existing arcade locations declining by 5% year-over-year.See it on page 7
06
The company utilized cash flow to fund capital expenditures, dividend payments, and the repurchase of 1.3 million shares of treasury stock.See it on page 11

Summary

Capcom achieved record-breaking financial performance during the first half of the fiscal year ending March 31, 2014, reporting all-time highs for net sales and all earnings categories. Net sales reached 53.2 billion yen, representing a significant increase over the 45.5 billion yen recorded in the same period of the previous year. Operating income rose to 7.5 billion yen, while ordinary income and net income climbed to 8.1 billion yen and 4.9 billion yen, respectively. These results align with the company’s strategic objectives for the fiscal year.

The primary drivers of this growth were the Digital Contents and Amusement Equipments segments. The Digital Contents division benefited from the release of the major title Monster Hunter 4, which sold 2.8 million units, alongside a notable increase in downloadable content sales. Simultaneously, the Amusement Equipments segment saw a substantial boost from the successful launch of the Devil May Cry 4 pachislo machine, which moved 25,000 units. Conversely, the Arcade Operations segment experienced a slight decline, with existing arcade sales falling by 5% year-over-year.

Balance sheet adjustments reflected these operational shifts, characterized by an increase in trade receivables due to the timing of major product launches and a reduction in work-in-progress for game software as titles moved to market. Cash flow analysis indicates that while operating activities generated 2.8 billion yen, the company utilized capital for the acquisition of tangible and intangible assets, dividend payments, and the repurchase of 1.3 million shares of treasury stock. Despite the inherent volatility of the entertainment industry, the company maintains a positive outlook based on its current development pipeline and market performance.