Capcom 3rd Quarter Financial Results: Fiscal Year Ending March 31, 2019

Key insights

7 takeaways

01
Capcom is on track for its sixth consecutive year of operating income growth, reporting 13,461 million yen in operating income on 61,270 million yen in net sales for the nine months ending December 31, 2018.See it on page 10
02
The Digital Contents segment is the primary growth engine, generating 15,288 million yen in operating income and achieving a 66.9% digital sales ratio for consumer software.See it on page 7
03
Monster Hunter: World remains the company's flagship title, having surpassed 11 million cumulative units sold.See it on page 9
04
The Amusement Equipments segment underperformed, recording an operating loss of 639 million yen due to declining demand in the pachinko and pachislo market.See it on page 17
05
Arcade Operations maintained stability through consistent location performance and the implementation of online crane game services.See it on page 16
06
Future growth strategy centers on global expansion, esports ecosystem development, and leveraging intellectual property for film and television adaptations.See it on page 12
07
Management maintains a positive full-year outlook supported by the releases of Resident Evil 2 and Devil May Cry 5, alongside ongoing monetization of catalog titles.See it on page 15

Summary

Capcom’s third-quarter financial results for the fiscal year ending March 31, 2019, demonstrate a strong growth trajectory, with the company aiming for its sixth consecutive year of operating income growth and record-high profits. The primary driver of this performance is the Digital Contents segment, which saw significant revenue gains fueled by the continued success of major consumer titles, most notably Monster Hunter: World, which surpassed 11 million cumulative units sold.

Financial data for the nine-month period ending December 31, 2018, shows net sales of 61,270 million yen and operating income of 13,461 million yen, representing a substantial increase over the same period in the previous year. The Digital Contents segment accounted for the vast majority of this growth, with operating income in that division rising to 15,288 million yen. Conversely, the Amusement Equipments segment experienced a decline, reporting an operating loss of 639 million yen due to lower unit sales in the pachinko and pachislo market. Arcade Operations remained stable, benefiting from consistent performance across existing locations and the introduction of online crane game services.

The company’s strategy focuses on global expansion, with overseas markets contributing significantly to consumer software sales. Management is prioritizing the growth of the esports ecosystem through international tournaments and leveraging intellectual property through film and television adaptations to enhance brand value. Looking ahead, the company maintains a positive outlook for the full fiscal year, supported by the release of major titles such as Resident Evil 2 and Devil May Cry 5, alongside a continued emphasis on digital sales and catalog title monetization. The report reflects a shift toward digital distribution, with digital ratios for consumer software reaching 66.9% during the nine-month period.