Consolidated Financial Results: 6 Months Ended September 30, 2024

Key insights

7 takeaways

01
Capcom reported a significant decline in financial performance for the six months ended September 30, 2024, with net sales falling 24.7% to 56,402 million yen and operating income dropping 38.7% to 20,726 million yen compared to the same period last year.See it on page 1
02
The Digital Contents segment, which remains the primary revenue driver, saw net sales decrease 35.1% to 39,775 million yen and operating income decline 40.2% to 20,640 million yen, largely due to the high-performance benchmark set by the release of Street Fighter 6 in the prior year.See it on page 4
03
Despite the year-over-year decline, the company maintains its full-year forecast for the fiscal year ending March 31, 2025, projecting net sales of 165,000 million yen (up 8.3%) and operating income of 64,000 million yen (up 12.1%).See it on page 6
04
The Other Businesses segment showed strong growth, with net sales rising 30.1% to 2,459 million yen and operating income surging 94.7% to 1,195 million yen, driven by expanded esports initiatives and licensing activities.See it on page 5
05
The company increased its investment in future development, with work in progress for game software rising to 49,263 million yen as of September 30, 2024, compared to 39,035 million yen at the end of the previous fiscal year.See it on page 7
06
Capcom expanded its production capabilities by acquiring Minimum Studios Co., Ltd. and established Leostar Co., Ltd. as part of its strategy to strengthen 3DCG animation production and human capital.See it on page 4
07
Mobile gaming continues to scale, with Monster Hunter Now exceeding 15 million cumulative downloads and the newly released Monster Hunter Puzzles: Felyne Isles surpassing 1 million downloads.See it on page 5

Summary

Capcom’s consolidated financial results for the six-month period ending September 30, 2024, reflect a planned decline in performance compared to the same period in the previous fiscal year. This downturn is primarily attributed to the timing of major title releases, which are weighted toward the second half of the fiscal year, contrasted against the prior year’s release of the flagship title Street Fighter 6. Despite this, the company maintains its full-year earnings forecast, projecting net sales of 165,000 million yen and operating income of 64,000 million yen for the fiscal year ending March 31, 2025.

For the six-month period, consolidated net sales reached 56,402 million yen, a 24.7% decrease year-over-year, while operating income fell 38.7% to 20,726 million yen. Net income attributable to owners of the parent declined 39.6% to 15,275 million yen. The Digital Contents segment, the company’s primary revenue driver, reported 39,775 million yen in net sales. While unit sales of new titles were lower than the previous year, the company successfully grew its catalog title sales to 18.95 million units, up from 17.6 million units in the prior year, supported by ongoing promotional efforts for established intellectual properties.

Other business segments showed growth, with Arcade Operations net sales rising 19.9% to 10,991 million yen and Amusement Equipments net sales increasing 22.2% to 3,176 million yen. The company continues to prioritize human capital investment and the expansion of its global digital footprint. Strategic initiatives during this period included the acquisition of two new subsidiaries, Leostar Co., Ltd. and Minimum Studios Co., Ltd., and the implementation of a performance-linked stock remuneration system for directors to align management interests with long-term corporate value.