Capcom 3rd Quarter Financial Results: Fiscal Year Ending March 31, 2021

Key insights

6 takeaways

01
Capcom reported net sales of 64,867 million yen and an operating income of 24,382 million yen for the nine-month period ending December 31, 2020.See it on page 11
02
Management raised full-year guidance to 92,000 million yen in net sales and 30,500 million yen in operating income, targeting an eighth consecutive year of profit growth.See it on page 4
03
The Digital Contents segment drove performance with 19.8 million consumer unit sales, led by titles such as Monster Hunter World: Iceborne and Resident Evil 3.See it on page 9
04
The Arcade Operations segment experienced a 28% decline in same-store sales due to the COVID-19 pandemic, while the Amusement Equipments segment saw a recovery driven by new pachislo machine releases.See it on page 17
05
Capcom reports that the impact of the COVID-19 pandemic on development and operations has been negligible, and a recent data security incident had limited impact on quarterly results.See it on page 2
06
The company continues to execute its 'Single Content Multiple Usage' strategy by leveraging major IPs like Resident Evil, Monster Hunter, and Street Fighter across games, film, and esports.See it on page 21

Summary

Capcom’s third-quarter financial results for the fiscal year ending March 31, 2021, demonstrate strong growth in sales and profit, primarily driven by the robust performance of the Digital Contents segment. The company reported net sales of 64,867 million yen and an operating income of 24,382 million yen for the nine-month period ending December 31, 2020. Based on these results, management raised its full-year guidance, projecting net sales of 92,000 million yen and an operating income of 30,500 million yen, aiming for an eighth consecutive year of increased operating income and record-high profits.

The Digital Contents segment remains the primary engine of growth, benefiting from strong catalog title sales and digital distribution. Consumer unit sales reached 19.8 million units during the nine-month period, with significant contributions from titles such as Monster Hunter World: Iceborne and Resident Evil 3. Conversely, the Arcade Operations segment faced challenges due to the COVID-19 pandemic, resulting in a 28% decline in same-store sales. However, the Amusement Equipments segment saw a recovery in performance, bolstered by the release of new pachislo machines.

The company reports that the impact of COVID-19 on development and business operations has been negligible, and a recent data security incident has had limited impact on quarterly results. Looking ahead, Capcom continues to prioritize its "Single Content Multiple Usage" strategy, leveraging its major intellectual properties—including Resident Evil, Monster Hunter, and Street Fighter—across games, film adaptations, and esports. The company maintains a positive outlook for the remainder of the fiscal year, supported by the scheduled release of major titles like Monster Hunter Rise.