Fiscal Year Ending March 2014: 1st Half Financial Results

Tecmo Koei Holdings reported record-breaking financial results for the first half of the fiscal year ending March 2014, marking the third consecutive year of growth in both sales and profit. Net sales reached 15.46 billion yen, a 12.6% increase year-over-year, while operating profit rose 83.8% to 1.65 billion yen. Net income saw a substantial surge of 329.6%, totaling 2.38 billion yen. These results were driven by strong performances in the Game Software and Online & Mobile segments, alongside effective cost management that improved the operating profit ratio from 6.5% to 10.7%.

The geographic scope of these results remains heavily centered in Japan, which accounted for 82.7% of sales. While overseas sales saw a slight decline of 6.9%, the Asian market emerged as a growth area with a 56% increase in revenue. In terms of industry segments, Game Software remains the primary driver, supported by successful titles such as Toukiden: The Age of Demons, which sold 470,000 units in Japan and Asia. The Online & Mobile segment also showed growth, supported by over 25 million users across various social and mobile platforms, including successful titles on App Store and Google Play.

The strategic thesis focuses on "IP Creation and Expansion," emphasizing multi-platform development and the integration of intellectual property across games, animation, and events. Looking forward, the company plans to aggressively support new platforms like the PlayStation 4 and expand its digital distribution and smartphone application business. Financial projections for the full fiscal year 2013 estimate sales of 37 billion yen and net income of 5.7 billion yen. The company maintains a robust dividend policy, aiming for a 50% payout ratio or a minimum dividend of 50 yen, reflecting a commitment to shareholder returns as it pursues long-term profitability.