Capcom Consolidated Financial Results for the 9 Months of the Fiscal Year Ending March 31, 2019

Key insights

7 takeaways

01
Capcom reported significant growth for the nine months ending December 31, 2018, with net sales rising 28.3% to 61,270 million yen and net income increasing 106.8% to 9,180 million yen.See it on page 1
02
The Digital Contents segment drove performance with 47,855 million yen in sales, bolstered by Monster Hunter: World exceeding 10 million units shipped and the release of Mega Man 11.See it on page 4
03
Operating income surged 92.0% to 13,461 million yen, largely due to the high-margin success of digital titles and global branding initiatives.See it on page 4
04
The Amusement Equipments business struggled, recording an operating loss of 639 million yen due to a declining Pachinko and Pachislo market and a lack of new arcade product releases.See it on page 5
05
Arcade Operations remained stable, contributing 8,082 million yen in sales and 868 million yen in operating income.See it on page 5
06
Capcom maintained its full-year forecast for the fiscal year ending March 31, 2019, targeting 96,000 million yen in net sales and 12,000 million yen in net income.See it on page 1
07
The company maintains a solid financial position with a 75.7% shareholders' equity ratio and increased treasury stock to 27,456 million yen following a share repurchase program.See it on page 1

Summary

Capcom’s consolidated financial results for the nine-month period ending December 31, 2018, demonstrate significant growth driven primarily by the strong performance of its Digital Contents segment. The company reported net sales of 61,270 million yen, representing a 28.3% increase compared to the same period in the previous fiscal year. Profitability metrics showed even stronger gains, with operating income rising 92.0% to 13,461 million yen and net income attributable to owners of the parent increasing by 106.8% to 9,180 million yen.

The Digital Contents business served as the primary catalyst for this growth, generating 47,855 million yen in sales and 15,288 million yen in operating income. This success was largely attributed to the continued popularity of Monster Hunter: World, which surpassed 10 million units in total shipments, alongside robust sales of catalog titles and new releases such as Mega Man 11. Conversely, the Amusement Equipments business faced challenges, recording an operating loss of 639 million yen due to a shrinking market for Pachinko and Pachislo machines and a lack of new products in the arcade game sales sub-segment. The Arcade Operations business remained stable, contributing 8,082 million yen in sales and 868 million yen in operating income.

The company maintained its full-year earnings forecast, projecting net sales of 96,000 million yen and net income of 12,000 million yen for the fiscal year ending March 31, 2019. Financial position remains solid with a shareholders' equity ratio of 75.7%. During the period, the company executed a share repurchase program, increasing treasury stock to 27,456 million yen. These results reflect a strategic focus on leveraging high-margin digital content and global branding initiatives, such as planned Hollywood film adaptations, to offset volatility in other business segments.