Financial Highlights for the 1st Quarter of the Fiscal Year Ending March 2015 (FY2014)

Koei Tecmo Holdings reported a significant increase in profitability for the first quarter of the fiscal year ending March 2015, despite a slight decline in overall revenue. While net sales decreased by 2.8% year-over-year to 6.32 billion yen, operating income surged by 959.1% to 470 million yen. Net income also saw substantial growth, rising 45% to 1.36 billion yen. These results indicate a shift toward higher-margin business activities and improved operational efficiency during the three-month period ending June 30, 2014.

Performance across business segments was mixed. The core Game Software division experienced a 14.4% drop in sales and a 33.1% decline in operating income, reflecting the cyclical nature of major title releases. Conversely, the Online & Mobile segment emerged as a primary growth driver, with sales increasing 18.4% and operating income rising 71.9%. Other areas, including Media & Rights and Pachislot & Pachinko, also posted revenue gains, while the Amusement Facilities segment continued to face challenges, reporting a small operating loss.

The consolidated balance sheet shows a total asset value of 93.8 billion yen, a decrease from the 100.6 billion yen reported at the end of the previous fiscal year. This change was largely driven by a reduction in cash and accounts receivable. However, the company maintains a strong equity position with net assets totaling 87.3 billion yen. Looking ahead, the full-year forecast remains optimistic, projecting net sales of 38 billion yen and an operating income of 8 billion yen, suggesting that the company expects continued momentum in its digital and mobile sectors to offset fluctuations in traditional software retail.