Capcom 1st Quarter Report: Fiscal Year Ending March 31, 2018

The first quarter report for the fiscal year ending March 31, 2018, outlines Capcom’s financial performance and strategic outlook, emphasizing a trajectory of sustained growth driven by its Digital Contents business. The primary thesis centers on achieving a fifth consecutive year of increased operating income through a combination of mobile licensing revenue, improved profitability in PC online titles, and a robust catalog of consumer game sales.

Financial results for the three-month period ending June 2017 show net sales of 11.7 billion JPY and an operating income of 784 million JPY, marking a significant recovery from the operating loss recorded in the same period of the previous year. This growth was largely supported by the Digital Contents segment, which saw increased profitability in mobile and PC online operations. Conversely, the Amusement Equipments business experienced a slight decline in revenue and profit due to lower unit sales of pachislo machines. The company maintains a positive full-year forecast, projecting net sales of 93 billion JPY and operating income of 14.5 billion JPY.

The scope of the report covers global operations across four primary segments: Digital Contents, Arcade Operations, Amusement Equipments, and other businesses. Key operational highlights include the successful launch of Ultra Street Fighter II for the Nintendo Switch and the continued strength of catalog titles, which accounted for 1.85 million units sold during the quarter. The company’s strategy remains focused on expanding its consumer business through upcoming major releases, such as Monster Hunter: World, while simultaneously leveraging digital download growth and international licensing partnerships to mitigate market volatility.