FinancialKoei Tecmo
Management Policy & Strategy: Fiscal Year Ended March 2013 Financial Results
1 Jan 201327 pages~11 min full read
Tecmo Koei achieved record-breaking profitability in FY2012, marking the third consecutive year of profit growth with operating profit rising 7.8% to 6.2 billion yen and ordinary profit surging 18.2% to 8.8 billion yen.
See it on page 15Despite a 2.5% decline in total sales to 34.6 billion yen, the company set an FY2013 growth target of 37 billion yen in sales and 7 billion yen in operating profit.
See it on page 2While Japan remains the primary market at 83% of total sales, the company saw a significant 47.3% year-over-year increase in overseas unit sales, driven largely by performance in North America.
See it on page 11The company is pivoting its mobile strategy from feature phones to smartphones and native applications, with a specific focus on expanding social game presence in the Asian market.
See it on page 23Strategic initiatives for FY2013 include multi-platform support for new hardware such as the Wii U and PlayStation 4 and the expansion of the digital download business.
See it on page 20Long-term growth will be driven by a strategy of cross-media IP integration, leveraging franchises like Nobunaga’s Ambition across animation, events, and toys.
See it on page 16Tecmo Koei Holdings presents a comprehensive analysis of its financial performance for the fiscal year ended March 2013 and outlines its strategic management policy for the 2013 fiscal year. The primary thesis centers on the company’s achievement of record-breaking profits and its transition toward a growth model driven by intellectual property (IP) creation and multi-platform expansion.
Financial data reveals that while sales slightly decreased by 2.5% to 34.6 billion yen in FY2012, operating profit rose by 7.8% to 6.2 billion yen, and ordinary profit surged by 18.2% to 8.8 billion yen. This represents the third consecutive year of profit increases. The game software segment remained the primary driver, though the company noted a strategic need to rebuild its online, mobile, and media rights businesses. Geographically, Japan remains the dominant market, accounting for over 83% of sales, though overseas unit sales saw a significant 47.3% year-over-year increase, particularly in North America.
The strategic outlook for FY2013 targets 37 billion yen in sales and 7 billion yen in operating profit. Key initiatives include the 30th anniversary of the Nobunaga’s Ambition franchise, support for new hardware such as the Wii U and PlayStation 4, and an expansion of the download business. In the mobile sector, the company plans to shift focus from feature phones to smartphones and native applications while prioritizing the Asian market for social game expansion. The overarching methodology emphasizes cost-of-goods improvements and the integration of IP across various media, including animation, events, and toys, to ensure long-term profitability and market share growth.
