FinancialKoei Tecmo
Financial Highlights for the Fiscal Year Ending March 2015 (FY2014)
1 Jan 20152 pages~3 min full read
Koei Tecmo Holdings achieved a 35.2% surge in operating income to 9.65 billion yen and a 36% increase in net income to 9.4 billion yen for the fiscal year ending March 2015, despite net sales remaining nearly flat at 37.8 billion yen.
The game software division, while seeing a 2.3% decline in revenue to 24.9 billion yen, improved its operating income by nearly 30% due to a more profitable product mix or reduced development costs.
The media and rights division demonstrated strong growth with a 32.5% increase in sales, contributing to the company's overall shift toward higher-margin business activities.
Total assets grew from 100.6 billion yen to 115.2 billion yen, bolstered by increases in investment securities and property and equipment.
Amusement facilities and pachislot segments underperformed, recording double-digit declines in both revenue and operating income.
Management projects continued growth for the 2015 fiscal year, setting a sales target of 40 billion yen based on the strength of digital and intellectual property portfolios.
Koei Tecmo Holdings achieved significant profitability growth during the fiscal year ending March 31, 2015, despite relatively flat top-line revenue. While net sales saw a marginal increase of 0.6% to 37.8 billion yen, operating income surged by 35.2% to 9.65 billion yen. This trend extended to net income, which rose 36% to reach 9.4 billion yen. These results reflect a successful shift toward higher-margin business activities and improved operational efficiency across the company’s core segments.
The game software division remains the primary driver of financial performance, contributing 24.9 billion yen in sales. Although segment revenue declined slightly by 2.3%, its operating income grew by nearly 30%, indicating a more profitable product mix or reduced development costs. The online and mobile segment and the media and rights division both posted gains in revenue and profit, with media and rights seeing a notable 32.5% increase in sales. Conversely, the amusement facilities and pachislot segments experienced double-digit declines in both revenue and operating income, reflecting a challenging environment for physical location-based entertainment.
The consolidated balance sheet reveals a strong liquidity position and a substantial increase in total assets, which grew from 100.6 billion yen to 115.2 billion yen. This growth was largely driven by a rise in investment securities and property and equipment. Shareholders' equity also strengthened, supported by a significant increase in retained earnings and unrealized gains on securities. Looking ahead to the 2015 fiscal year, forecasts suggest continued growth with a sales target of 40 billion yen and a modest increase in net income, signaling confidence in the sustained performance of the company’s digital and intellectual property portfolios.
