FinancialKoei Tecmo
Financial Highlights for the 3rd Quarter of the Fiscal Year Ending March 2016 (FY2015)
1 Jan 20152 pages~4 min full read
Koei Tecmo reported a 4.6% increase in net income to 6.83 billion yen for the nine-month period ending December 31, 2015, despite a 6.4% decline in net sales to 22.54 billion yen.
See it on page 1Operating income fell 19.0% year-over-year to 3.94 billion yen, as the company relied on strong non-operating figures to bolster its bottom line.
See it on page 1The core Game Software division struggled with a 10.8% drop in sales and a 26.6% decline in operating income.
See it on page 1The Online & Mobile segment served as a growth driver, achieving an 8.2% increase in sales to 5.30 billion yen and a 9.1% rise in operating income.
See it on page 1Management maintained its full-year forecast, targeting 40 billion yen in net sales and 9.5 billion yen in net income for the fiscal year ending March 2016.
See it on page 1Total assets decreased from 115.2 billion yen to 104.5 billion yen over the nine-month period, largely due to reductions in accounts receivable and investment security valuations.
See it on page 2Koei Tecmo Holdings reported its financial results for the third quarter of the fiscal year ending March 2016, revealing a period of mixed performance characterized by declining top-line revenue but improved net profitability. For the nine-month period ending December 31, 2015, net sales reached 22.54 billion yen, representing a 6.4% decrease compared to the same period in the previous year. Operating income also saw a significant year-over-year contraction of 19.0%, falling to 3.94 billion yen. Despite these declines in operational performance, net income rose by 4.6% to 6.83 billion yen, supported by strong non-operating figures that bolstered income before taxes.
The performance across business segments was varied. The core Game Software division experienced a 10.8% drop in sales and a 26.6% decline in operating income, reflecting a challenging period for traditional packaged software. Conversely, the Online & Mobile segment demonstrated growth, with sales increasing by 8.2% to 5.30 billion yen and operating income rising by 9.1%. Other smaller segments, such as Amusement Facilities and Real Estate, showed improved profitability despite their smaller scale, while the Media & Rights division swung to a small operating loss.
Geographically focused on the Japanese market with global reach through its software titles, the company remains optimistic about its full-year outlook. Management maintained forecasts that project a recovery in the fourth quarter, targeting annual net sales of 40 billion yen and a net income of 9.5 billion yen. The balance sheet remains liquid, though total assets decreased from 115.2 billion yen at the start of the fiscal year to 104.5 billion yen, primarily driven by a reduction in notes and accounts receivable and a decrease in the valuation of investment securities. Net assets stood at 97.8 billion yen at the end of the third quarter.
