Capcom Consolidated Financial Results: 6 Months of FY2015

Capcom’s consolidated financial results for the six-month period ending September 30, 2015, reflect a period of revenue growth tempered by significant declines in profitability. The company reported net sales of 31,638 million yen, representing a 22.1% increase compared to the same period in the previous fiscal year. Despite this top-line growth, operating income fell by 35.1% to 2,844 million yen, while net income attributable to owners of the parent declined by 34.4% to 1,951 million yen. These results were primarily driven by an increased cost of sales ratio, which offset gains in net revenue.

The company operates across four primary segments: Digital Contents, Arcade Operations, Amusement Equipments, and Other Businesses. The Amusement Equipments segment saw the most significant growth, with net sales rising 76.3% to 12,132 million yen, largely supported by the strong performance of the Resident Evil 6 pachislo machine. Conversely, the Arcade Operations segment struggled, with sales declining 8.6% due to a lack of high-performance products and increased competition from mobile gaming. The Digital Contents segment experienced a modest sales increase of 6.2%, though operating income for the division dropped by 28.7%.

Management attributes these results to a challenging economic environment characterized by sluggish consumer spending and intense competition within the mobile and home video game markets. To mitigate costs and improve efficiency, the company focused on increasing the ratio of internally produced titles and reducing reliance on outsourcing. Despite the mid-year profit contraction, the company maintained its full-year earnings forecast for the fiscal year ending March 31, 2016, projecting net sales of 76,000 million yen and net income of 7,700 million yen. The financial position remains stable, with total assets reaching 108,774 million yen and a shareholders' equity ratio of 66.1%.