Capcom Consolidated Financial Results: 3rd Quarter of FY2017

Capcom’s consolidated financial results for the nine-month period ending December 31, 2017, reflect a strategic shift toward digital content and intellectual property licensing, resulting in improved profitability despite a decline in total net sales. The company reported net sales of 47,740 million yen, a 10.8% decrease compared to the same period in the previous fiscal year. Conversely, operating income rose significantly by 36.9% to 7,009 million yen, while net income attributable to owners of the parent increased by 60.7% to 4,439 million yen.

The Digital Contents segment served as the primary driver of growth, with net sales reaching 30,844 million yen and operating income surging by 328.2% to 6,257 million yen. Strong performance from titles such as Resident Evil 7 biohazard and Monster Hunter XX, alongside robust licensing revenue, offset weaker results in the mobile contents and Pachinko & Pachislo sub-segments. The Amusement Equipments business faced significant headwinds, with net sales dropping 53.5% due to regulatory changes in model-testing methods, which hampered the performance of the Pachinko & Pachislo division.

Geographically focused on the Japanese market with global distribution, the company maintained a stable financial position with a shareholders' equity ratio of 72.0%. The results were prepared under Japan GAAP, utilizing simplified accounting methods for quarterly reporting. Management continues to prioritize the "Single Content Multiple Usage" strategy to diversify revenue streams while focusing on the development of high-quality home video game software. The company maintained its full-year earnings forecast, projecting net sales of 93,000 million yen and operating income of 14,500 million yen for the fiscal year ending March 31, 2018.