Financial

Fiscal Year Ending March 2015 Financial Results

1 January 201438 pages2,653 words

Summary

Koei Tecmo achieved record-breaking financial performance for the fiscal year ending March 2015, marking five consecutive years of profit growth and two years of rising sales. Net income surged 36% year-over-year to ¥9.4 billion, a success attributed to the robust performance of the Online and Mobile segment and high-profile intellectual property collaborations such as Dragon Quest Heroes. This period of growth was characterized by a significant improvement in operational efficiency, with the operating profit ratio rising to 25.5% and the cost-of-sales ratio decreasing by 7.0 points since 2011. Consequently, the company increased its dividend to 55 yen per share, reflecting a strong commitment to shareholder returns. The strategic focus has shifted toward a multi-platform digital approach, prioritizing the expansion of smartphone games and digital download content. A central pillar of this strategy involves leveraging established IP through global licensing and large-scale collaborations, supported by the creation of a dedicated Business Promoting Division. Geographically, there is a concerted effort to penetrate Asian markets, specifically China and Korea, across both console and mobile platforms. This international outlook extends to the company’s investment strategy, which saw foreign asset holdings increase from 20% in 2011 to 60% in 2014, with future targets set even higher. Looking ahead to the next fiscal year, sales are forecasted to grow by 5.8% to reach ¥40 billion. The long-term objective remains the continuous creation and expansion of intellectual property to maintain this upward trajectory. By balancing traditional console development with aggressive mobile growth and international licensing, the organization aims to solidify its position as a highly profitable global entertainment provider while maintaining the financial stability established over the previous four-year period.

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Fiscal Year Ending March 2015 Financial Results

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