Financial Highlights for the 1st Half of Fiscal Year Ending March 2011 (FY2010)

Tecmo Koei Holdings experienced a challenging first half for the fiscal year ending March 2011, characterized by significant year-over-year declines across nearly all business segments. Net sales for the six-month period fell to 11,069 million yen, representing a 27.5% decrease compared to the same period in the previous year. This downturn led to an operating loss of 1,656 million yen and a net loss of 571 million yen, deepening the deficits recorded during the first half of fiscal year 2009.

The game software segment, the company’s largest division, was the primary driver of this decline, with sales dropping 34.2% to 6,330 million yen and operating losses nearly doubling to 1,623 million yen. Other core areas, including online and mobile, media and rights, and pachislot and pachinko, also saw revenue contractions ranging from 12.3% to 22.8%. Amusement facilities remained a small bright spot in terms of profitability, seeing operating income rise to 136 million yen despite a 10.7% dip in sales.

Despite these immediate losses, the financial outlook for the full fiscal year remains optimistic, projecting a significant recovery in the second half. Management forecasts total annual net sales of 36,500 million yen, a 5.8% increase over the prior full year. This recovery is expected to be driven by a massive surge in game software profitability, with a full-year operating income target of 5,000 million yen. Achieving these goals would represent a 680% year-over-year increase in operating income, suggesting a heavy reliance on major product launches or seasonal performance scheduled for the latter half of the fiscal year.