FinancialKoei Tecmo
Fiscal Year Ending March 2017: 1st Half Financial Results
1 Jan 201629 pages~12 min full read
Koei Tecmo achieved record-high first-half sales of 16.58 billion yen, representing a 9.3% year-over-year increase, with operating profit rising 11% to 2.75 billion yen.
Despite revenue growth, ordinary profit and net income declined by 13.3% and 6.8% respectively, attributed to game release timing and non-operating expense fluctuations.
The entertainment division generated 14.6 billion yen in revenue, supported by key titles including Toukiden 2, Attack on Titan, and Dragon Quest Heroes II.
Japan remains the primary market at 75% of total sales, though the company is actively pursuing growth in Asian markets and shifting toward a digital-first business model to improve margins.
Management projects full-year sales of 42 billion yen and aims for a seventh consecutive year of profit growth, supported by a dividend increase to 63.6 yen.
Future strategy focuses on maximizing IP value through multi-platform expansion, including upcoming projects like Nioh, new Atelier and Samurai Warriors entries, and PlayStation VR content.
Koei Tecmo Holdings reports record-high sales for the first half of the fiscal year ending March 2017, driven by strong performances in the entertainment segment and successful intellectual property (IP) expansions. Net sales reached 16.58 billion yen, a 9.3% increase year-over-year, while operating profit rose 11% to 2.75 billion yen. Despite these gains, ordinary profit and net income saw declines of 13.3% and 6.8% respectively, primarily due to the timing of game releases and fluctuations in non-operating expenses.
The entertainment division remains the primary revenue driver, contributing 14.6 billion yen to total sales. Geographically, Japan continues to be the dominant market, accounting for nearly 75% of sales, though Asian markets showed significant growth. Key titles such as Toukiden 2, Attack on Titan, and Dragon Quest Heroes II supported the software lineup, while major social games maintained solid performance. The company is increasingly shifting toward a digital-first business model, with digital sales proportions rising steadily to improve profit margins.
Looking ahead, the management strategy focuses on a brand-based organizational structure to maximize IP value through multi-platform expansion, global tie-ups, and collaborations. Notable upcoming projects include Nioh, new entries in the Atelier and Samurai Warriors series, and a push into PlayStation VR content. For the full fiscal year 2016, the company maintains a positive outlook, projecting total sales of 42 billion yen and aiming for its seventh consecutive year of profit growth. The financial plan also includes a dividend increase to 63.6 yen, reflecting confidence in the long-term strategy of IP creation and expansion across smartphones, consoles, and emerging media.
