Capcom Consolidated Financial Results for the 3 Months of the Fiscal Year Ending March 31, 2019

Key insights

7 takeaways

01
Capcom achieved significant Q1 growth with net sales rising 46.5% to 17,204 million yen and net income surging 648.6% to 3,903 million yen compared to the previous year.See it on page 1
02
The Digital Contents segment was the primary growth driver, reporting a 79.3% increase in net sales to 13,782 million yen, largely fueled by the performance of 'Monster Hunter: World' and high-margin catalog titles.See it on page 4
03
Operating income saw a massive 550.8% increase to 5,106 million yen, reflecting strong profitability improvements across the company.See it on page 5
04
The Amusement Equipments business struggled significantly, recording a 73.1% decline in net sales to 376 million yen and an operating loss of 154 million yen due to weak market conditions for Pachinko and Pachislo machines.See it on page 5
05
Arcade Operations remained a stable revenue stream for the company, contributing 2,381 million yen in net sales during the quarter.See it on page 5
06
Capcom maintains its full-year earnings forecast of 96,000 million yen in net sales and 17,000 million yen in operating income.See it on page 1
07
The company maintains a solid financial position with total assets of 120,220 million yen and a shareholders' equity ratio of 73.0%.See it on page 7

Summary

Capcom’s consolidated financial results for the first quarter of the fiscal year ending March 31, 2019, demonstrate significant growth driven primarily by the strong performance of its Digital Contents segment. The company reported net sales of 17,204 million yen, representing a 46.5% increase compared to the same period in the previous year. Profitability metrics showed substantial gains, with operating income rising 550.8% to 5,106 million yen, ordinary income increasing 610.6% to 5,492 million yen, and net income attributable to owners of the parent climbing 648.6% to 3,903 million yen.

The Digital Contents business served as the primary catalyst for this growth, fueled by the continued popularity of Monster Hunter: World and robust sales of high-margin catalog titles. This segment generated 13,782 million yen in net sales, a 79.3% increase year-over-year. Conversely, the Amusement Equipments business faced challenges, recording a net sales decline of 73.1% to 376 million yen and an operating loss of 154 million yen, attributed to a weak market for Pachinko and Pachislo machines and a lack of new arcade product releases. The Arcade Operations segment remained stable, contributing 2,381 million yen in net sales.

The financial position remains solid, with total assets of 120,220 million yen and a shareholders' equity ratio of 73.0%. The company maintains its full-year earnings forecast, projecting net sales of 96,000 million yen and operating income of 17,000 million yen. These results were prepared in accordance with Japan GAAP, utilizing standard accounting practices for quarterly financial statements, and reflect the impact of a 2-for-1 stock split effective April 1, 2018.