FinancialKoei Tecmo
Fiscal Year Ending 1st Half Financial Overseas Titles
1 Jan 201024 pages~5 min full read
For the first half of the fiscal year ending September 2010, net sales fell to 11,069 million yen from 15,264 million yen, resulting in an operating loss of 1,656 million yen.
The company maintains a full-year forecast of 34,500 million yen in sales and a projected operating profit of 4,000 million yen.
Operating losses were impacted by 510 million yen in goodwill amortization expenses following the merger of Koei and Tecmo and the acquisition of Koei Net Co., Ltd.
Management aims to increase overseas revenue from 15.8% to 18.1% of total sales by the end of the fiscal year, with a focus on growth in North America and Europe.
A new Global Marketing Department has been established to integrate international market feedback into the early stages of game development.
The company is prioritizing expansion into social and mobile gaming, evidenced by the success of 'Nobunaga’s Ambition for Everyone,' which reached over one million users on the Mobage platform.
Future digital strategy centers on continuous content releases, smartphone implementation, and entry into global social platforms like Facebook.
The financial results for the first half of the fiscal year ending March 2011 reveal a period of transition and strategic realignment following the merger of Koei and Tecmo. During the six months ending September 2010, net sales reached 11,069 million yen, a decline from the 15,264 million yen reported in the previous year. The period saw an operating loss of 1,656 million yen, influenced in part by 510 million yen in goodwill amortization expenses related to the merger and the acquisition of Koei Net Co., Ltd. Despite these short-term losses, the full-year forecast remains optimistic, targeting 34,500 million yen in sales and a return to profitability with a projected 4,000 million yen in operating profit.
Geographically, the Japanese market remains the primary revenue driver, accounting for 85.5% of sales in the first half. However, there is a clear strategic shift toward international expansion, with plans to increase overseas sales from 15.8% to 18.1% of total revenue by the end of the fiscal year. North America and Europe are identified as key growth regions. To support this, a Global Marketing Department has been established to integrate overseas market feedback into the early planning stages of game development, ensuring titles are better tailored for international audiences.
A significant pillar of the future growth strategy involves aggressive entry into the social and mobile gaming sectors. Successes with titles like Nobunaga’s Ambition for Everyone, which surpassed one million registered users on the Mobage platform, serve as a blueprint for leveraging established intellectual property in rapidly growing digital markets. Moving forward, the focus will shift toward continuous content releases, smartphone implementation, and breaking into global social platforms like Facebook. This digital expansion is paired with a commitment to cost reduction and the maximization of internal IP to stabilize long-term financial performance.
