Financial Highlights: 1st Quarter of Fiscal Year Ending March 2011

The financial highlights for the first quarter of fiscal year ending March 2011 reveal a mixed performance across Tecmo Koei Holdings’ operating segments. Net sales fell 23.5 % year‑over‑year to ¥34,502 million, driven mainly by declines in game software sales (−32.3 %) and online & mobile revenue (−29.3 %). In contrast, pachislot & pachinko sales rose 36.1 % to ¥1,442 million, while media & rights and amusement facilities experienced modest growth of 18.8 % and −11.2 %, respectively. The “Other” segment saw a sharp increase of 260 % to ¥104 million, though its absolute contribution remained small.

Operating income swung from a loss of ¥519 million in the same quarter of FY2009 to a profit of ¥641 million, an improvement of 1,160 million yen. This turnaround was largely attributable to game software operating income rising from a loss of ¥517 million to a profit of ¥1,161 million. Online & mobile income improved from a loss of ¥114 million to a profit of ¥639 million, while media & rights and pachislot & pachinko also posted gains. The “Other” segment’s operating income increased markedly, though its impact on total profitability was limited by the overall scale.

Net income shifted from a loss of ¥102 million to a profit of ¥2,604 million, reflecting the combined effect of stronger operating results and favorable tax treatment. Forecasts for the full year project net sales growth to 5.8 % and operating income to 680 %, indicating management’s expectation of a rebound in game software sales and continued strength in pachislot & pachinko. The analysis covers all business units within the company, with data expressed in millions of yen for FY2009 and FY2010, and includes year‑over‑year comparisons and forecasted full‑year figures.