Financial

Fiscal Year Ending March 2014 Financial Results

1 January 201429 pages2,427 words

Summary

Tecmo Koei Holdings reported record-breaking financial results for the fiscal year ending March 31, 2014, marking the fourth consecutive year of profit growth. Net sales reached 37.58 billion yen, an 8.5% year-on-year increase, while net income rose 22.6% to 6.94 billion yen. This performance was driven by the successful execution of the "IP Creation and Expansion" strategy, highlighted by the 30th anniversary of the Nobunaga’s Ambition series and the launch of the new Toukiden IP, which sold 550,000 units. The Game Software segment remained the primary revenue driver, contributing 25.4 billion yen in sales, followed by the Online & Mobile segment at 6.4 billion yen. Geographically, Japan accounted for over 83% of total sales, though the Asian market showed the strongest growth at 33.2%. While total unit sales remained relatively flat at 6.5 million units, profitability improved significantly; the operating profit ratio rose to 19.0%, and the ordinary profit ratio reached 28.6%. These gains were supported by a reduction in the cost of goods sold and improved management of SG&A expenses. Looking ahead to fiscal year 2014, the company plans to achieve further growth with a sales target of 38 billion yen and an ordinary profit ratio exceeding 30%. Strategic priorities include expanding smartphone and browser games in Asian markets, pursuing major collaborations such as Hyrule Warriors for the Wii U, and supporting new hardware platforms like the PlayStation 4 and Xbox One. To reward shareholders, the company maintains a 50% payout ratio policy, increasing the annual dividend to 41 yen with a long-term goal of reaching 50 yen.

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