Capcom First Half Report: Fiscal Year Ending March 31, 2019

Key insights

6 takeaways

01
Capcom achieved record-high profits for the first half of the fiscal year ending March 31, 2019, with net sales of 43.3 billion JPY and an operating income of 10.5 billion JPY.See it on page 4
02
The Digital Contents segment drove financial success, largely fueled by Monster Hunter: World, which reached over 10 million units in cumulative global sales.See it on page 8
03
The company is on track for six consecutive years of operating income growth, supported by a strategic shift toward digital distribution and international markets.See it on page 3
04
The Amusement Equipments segment underperformed, recording an operating loss due to lower pachislo unit sales and impairment charges.See it on page 11
05
Arcade Operations remained stable during this period, bolstered by consistent same-store sales and the opening of new locations.See it on page 16
06
Future growth strategy focuses on the upcoming releases of Resident Evil 2 and Devil May Cry 5, alongside continued expansion of the Capcom Pro Tour esports circuit.See it on page 15

Summary

Capcom’s first-half report for the fiscal year ending March 31, 2019, outlines a period of significant financial growth, driven primarily by the strong performance of its Digital Contents segment. The company achieved record-high profits for the six-month period, positioning itself to reach its goal of six consecutive years of operating income growth. This success is largely attributed to the global commercial impact of Monster Hunter: World, which surpassed 10 million units in cumulative sales, alongside the effective release of updated titles for current-generation hardware.

Financial data for the six months ending September 30, 2018, shows net sales of 43.3 billion JPY and an operating income of 10.5 billion JPY, representing substantial increases over the same period in the previous year. While the Digital Contents business thrived, the Amusement Equipments segment faced challenges, recording a decline in revenue and an operating loss due to lower unit sales of pachislo models and impairment charges. Conversely, the Arcade Operations segment maintained stability through consistent same-store sales and the strategic opening of new locations.

The company’s strategy for the remainder of the fiscal year focuses on leveraging its digital catalog, expanding its esports presence through events like the Capcom Pro Tour, and preparing for major global software releases such as Resident Evil 2 and Devil May Cry 5. Despite downward revisions in the Amusement Equipments segment, Capcom maintains an optimistic full-year outlook, projecting record-high profits. The report underscores a shift toward digital distribution and international markets, with overseas sales continuing to represent a dominant portion of the company’s consumer software unit volume.