Financial Highlights for the 3rd Quarter of the Fiscal Year Ending March 2018 (FY2017)

Koei Tecmo Holdings reported strong profitability growth for the third quarter of the fiscal year ending March 2018, despite a slight softening in top-line revenue. While net sales saw a marginal year-over-year decline of 0.7% to 24.03 billion yen, the company achieved significant improvements in its bottom-line performance. Operating income rose by 62.5% to 5.69 billion yen, and net income increased by 38.0% to 8.26 billion yen. This growth was driven by enhanced operational efficiency, as evidenced by a 19.4% increase in gross profit.

The Entertainment segment remains the primary driver of the business, contributing 21.26 billion yen in sales and 4.92 billion yen in operating income, the latter representing an 81.2% year-over-year increase. In contrast, the Pachislot & Pachinko segment experienced a sharp decline, with sales falling 52.1% and operating income dropping 57.5%. The Amusement Facilities segment saw a 24.0% rise in sales but recorded an operating loss of 227 million yen for the period.

On the balance sheet, total assets grew to 126.29 billion yen as of December 31, 2017. This growth was largely fueled by a substantial increase in investment securities, which rose from 65.48 billion yen to 81.45 billion yen. The company maintains a robust equity position with total net assets of 114.63 billion yen. Looking ahead to the full fiscal year, the company forecasts a recovery in sales to 42.0 billion yen, representing a 13.4% annual increase, while maintaining a positive outlook for continued growth in operating and net income.