Financial Highlights: 1st Half of the Fiscal Year Ending March 2016

Koei Tecmo Holdings reported its first‑half financial results for the fiscal year ending March 2016, showing a 5.9 % decline in net sales to ¥37.8 billion compared with the same period a year earlier, while full‑year sales are projected to rise 5.8 % to ¥40 billion. Gross profit fell 8.1 % to ¥17.1 billion, and operating income dropped 24.8 % to ¥9.7 billion; net income decreased 3.4 % to ¥9.4 billion, reflecting a modest 0.7 % increase over the full‑year forecast of ¥9.5 billion.

Segment analysis indicates that Game Software sales declined 10.1 % to ¥24.9 billion, whereas Online & Mobile sales grew 6.8 % to ¥6.7 billion, and Media & Rights sales rose 5.4 % to ¥26.2 billion. Pachislot & Pachinko and Amusement Facilities segments experienced sharp declines of 17.1 % and 17.6 %, respectively, while Real Estate sales increased 67.7 %. Operating income was strongest in Game Software (¥7.8 billion) and Online & Mobile (¥1.3 billion), with Media & Rights showing a 155.4 % decline.

Balance‑sheet highlights show total assets reduced from ¥115.2 billion to ¥101.5 billion, largely due to a drop in investment securities and current assets. Current liabilities fell from ¥10.9 billion to ¥6.0 billion, and long‑term liabilities decreased from ¥3.6 billion to ¥1.1 billion, improving liquidity and leverage ratios. Shareholders’ equity remained stable at ¥92.2 billion, with retained earnings slightly lower. The company’s financial position remains solid, though operating performance is pressured by declines in core gaming and amusement segments.