Capcom Consolidated Financial Results: 6 Months Ended September 30, 2018

Key insights

6 takeaways

01
Capcom achieved significant growth for the six months ending September 30, 2018, with net sales rising 28.5% to 43,327 million yen and operating income surging 110.1% to 10,508 million yen.See it on page 4
02
The record-breaking performance of Monster Hunter: World, which exceeded 10 million total shipments, served as the primary driver for the company's financial success.See it on page 4
03
The digital contents segment was bolstered by the release of the PC version of Monster Hunter: World and strong catalog title sales, offsetting challenges in the Chinese market.See it on page 4
04
The amusement equipment segment recorded an operating loss of 625 million yen due to a downturn in the pachinko and pachislo market, while arcade operations saw a 6.3% increase in net sales.See it on page 5
05
Capcom maintained 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
06
The board authorized a share repurchase of up to 2,737,100 shares to improve capital efficiency following an intent to sell by the company's largest shareholder, Crossroad Co., Ltd.See it on page 13

Summary

Capcom’s consolidated financial results for the six-month period ending September 30, 2018, demonstrate significant growth driven primarily by the strong performance of its digital content segment. The company reported net sales of 43,327 million yen, representing a 28.5% increase compared to the same period in the previous fiscal year. Operating income rose sharply by 110.1% to 10,508 million yen, while net income attributable to owners of the parent reached 6,849 million yen, a 96.8% increase. These results were achieved despite a challenging environment in the Chinese market and an operating loss within the amusement equipment segment.

The primary catalyst for this financial success was the continued commercial momentum of Monster Hunter: World, which surpassed 10 million units in total shipments, marking a record for a single title in the company's history. The digital contents segment benefited further from the release of the PC version of this flagship title and the robust performance of other catalog titles. Conversely, the amusement equipment business struggled due to a downturn in the pachinko and pachislo market, resulting in an operating loss of 625 million yen. The arcade operations segment remained stable, posting a 6.3% increase in net sales.

The company maintained its full-year earnings forecast, projecting net sales of 96,000 million yen and operating income of 17,000 million yen. Following the close of the second quarter, the board of directors authorized a tender offer to repurchase up to 2,737,100 shares of common stock. This strategic move, intended to improve capital efficiency and shareholder returns, was initiated after the company’s largest shareholder, Crossroad Co., Ltd., expressed an intent to sell a portion of its holdings.