Capcom Consolidated Financial Results for the 9 Months of the Fiscal Year Ending March 31, 2021

Key insights

6 takeaways

01
Capcom achieved strong growth for the nine months ending December 31, 2020, with net sales rising 22.6% to 64,867 million yen and net income increasing 34.1% to 17,523 million yen.See it on page 1
02
The Digital Contents business served as the primary growth engine, generating 48,966 million yen in net sales and 24,787 million yen in operating income through new releases and catalog title sales.See it on page 4
03
The Amusement Equipments business saw a massive 911.6% surge in net sales to 6,712 million yen, driven by the successful launch of new models.See it on page 5
04
Arcade Operations suffered significant pandemic-related losses, with net sales declining 23.7% and operating income dropping 92.7% compared to the previous year.See it on page 4
05
The company maintains a stable financial position with total assets of 137,598 million yen and a shareholders' equity ratio of 81.2%.See it on page 7
06
Capcom has maintained its previously announced full-year earnings forecast for the fiscal year ending March 31, 2021, despite the operational challenges of the pandemic.See it on page 5

Summary

Capcom’s consolidated financial results for the nine-month period ending December 31, 2020, demonstrate strong growth despite the operational challenges posed by the global COVID-19 pandemic. The company achieved net sales of 64,867 million yen, representing a 22.6% increase over the same period in the previous fiscal year. Profitability metrics also saw significant gains, with operating income rising 32.2% to 24,382 million yen and net income attributable to owners of the parent increasing 34.1% to 17,523 million yen.

The primary driver of this performance was the Digital Contents business, which capitalized on the release of new titles and the sustained popularity of high-margin catalog games. This segment generated 48,966 million yen in net sales and 24,787 million yen in operating income. The Amusement Equipments business also experienced a substantial surge, with net sales reaching 6,712 million yen, a 911.6% increase, bolstered by the successful launch of new models. Conversely, the Arcade Operations segment faced significant headwinds due to pandemic-related closures, resulting in a 23.7% decline in net sales and a 92.7% drop in operating income.

The financial position remains stable, with total assets of 137,598 million yen and a shareholders' equity ratio of 81.2%. The company continues to utilize Japan GAAP accounting standards and has maintained its previously announced full-year earnings forecast for the fiscal year ending March 31, 2021. These results reflect a strategic shift toward digital distribution and the effective management of intellectual property to mitigate the broader economic impacts of the pandemic on physical retail and arcade operations.