Capcom Consolidated Financial Results for the 3 Months of the Fiscal Year Ending March 31, 2020

Key insights

6 takeaways

01
Capcom achieved strong Q1 growth for the period ending June 30, 2019, with operating income rising 50.8% to 7,703 million yen and net sales increasing 4.3% to 17,938 million yen.See it on page 1
02
The Digital Contents segment served as the primary revenue driver, generating 13,977 million yen in sales through high-margin digital downloads of catalog titles including Resident Evil 2, Devil May Cry 5, and Monster Hunter: World.See it on page 4
03
Net income attributable to owners of the parent grew by 38.9% to 5,420 million yen, reflecting increased profitability despite a limited release schedule for new titles during the quarter.See it on page 9
04
The Amusement Equipments business returned to profitability with 133 million yen in operating income, while the Arcade Operations business contributed 2,710 million yen in sales.See it on page 5
05
Management maintains its full-year earnings forecast of 85,000 million yen in net sales and 20,000 million yen in operating income.See it on page 1
06
The company maintains a stable financial position with total assets of 117,996 million yen and a shareholders' equity ratio of 77.5%.See it on page 7

Summary

Capcom’s consolidated financial results for the first quarter of the fiscal year ending March 31, 2020, reflect a period of strong profitability driven by high-margin digital sales and the sustained popularity of major catalog titles. During the three-month period ending June 30, 2019, the company achieved net sales of 17,938 million yen, representing a 4.3% increase compared to the same period in the previous year. Operating income saw significant growth, rising 50.8% to 7,703 million yen, while net income attributable to owners of the parent reached 5,420 million yen, a 38.9% increase.

The Digital Contents business remained the primary revenue driver, generating 13,977 million yen in sales. Despite a limited release schedule for new titles during this quarter, the segment benefited from the enduring performance of established hits such as Resident Evil 2, Devil May Cry 5, and Monster Hunter: World. These titles bolstered profitability by driving high-margin digital downloads. Other segments also showed positive momentum; the Arcade Operations business reported 2,710 million yen in sales, and the Amusement Equipments business returned to profitability with 133 million yen in operating income, despite a decline in total segment sales.

Management continues to prioritize a multi-platform strategy and the expansion of digital sales channels while restructuring to focus resources on core development and eSports. The company maintains its previously announced full-year earnings forecast, projecting net sales of 85,000 million yen and operating income of 20,000 million yen. The financial position remains stable, with total assets of 117,996 million yen and a shareholders' equity ratio of 77.5%. The results were prepared under Japan GAAP, with minor accounting adjustments related to the adoption of IFRS 16 for certain subsidiaries.