Financial Highlights: 1st Quarter of Fiscal Year Ending March 2018

Financial highlights for KOEI TECMO HOLDINGS CO., LTD. cover the first quarter of fiscal year ending March 2018, comparing results to FY2017 and a forecast for the full year. Net sales fell 15.3 % to ¥37,034 million, driven by a 14.8 % decline in the entertainment segment and a 40.7 % drop in pachislot & pachinko revenue, while amusement facilities grew modestly by 0.7 %. Gross profit decreased 10.7 % to ¥17,211 million, and operating income contracted 16.4 % to ¥8,781 million; however, income before taxes surged 239.8 % to ¥15,211 million due largely to a sharp rise in operating income from the entertainment segment. Net income increased 182.5 % to ¥11,624 million, reflecting higher profitability in core gaming operations.

Segment‑level operating income mirrored sales trends: entertainment contributed ¥7,815 million (−16.9 % YoY), pachislot & pachinko ¥736 million (−48.9 % YoY), and amusement facilities ¥27 million (−20 %). Forecasts for the full year project net sales of ¥42,000 million (+13.4 % YoY) and operating income of ¥11,500 million (+31.0 % YoY), indicating a recovery trajectory.

Balance‑sheet data as of June 30, 2017 show total assets at ¥113,530 million and liabilities at ¥9,077 million, with shareholders’ equity of ¥104,452 million. Current assets declined from ¥26,689 million to ¥20,387 million, largely due to reduced cash and time deposits. Current liabilities fell from ¥11,460 million to ¥7,354 million, driven by lower trade payables and short‑term loans. The company’s liquidity position remains solid, with a current ratio above 2:1 and a debt‑to‑equity ratio below 0.09, supporting continued investment in gaming and entertainment assets across Japan during the fiscal year.