Fiscal Year Ending March 2018: Financial Results

Summary

Koei Tecmo Holdings reported record-high profits for the fiscal year ending March 2018, driven by a successful multi-platform strategy and significant growth in overseas markets. Net sales reached 38.9 billion yen, a 5.1% year-over-year increase, while operating profit surged by 33.4% to 11.7 billion yen. This financial performance was supported by the global success of key titles such as Nioh, which sold over 1.9 million copies, and Fire Emblem Warriors, which surpassed 1 million units. The geographic data highlights a strategic shift toward international expansion. While domestic sales in Japan saw a slight decline of 4%, overseas revenue grew by 30%, now accounting for one-third of total sales. Unit sales outside of Japan were particularly strong, representing nearly 69% of total volume, with Europe and North America showing the most aggressive growth rates at 89.8% and 60.6% respectively. The entertainment segment remains the primary driver of the business, contributing 35.4 billion yen in sales. Looking forward, the mid-term management plan through fiscal year 2020 aims for a 10% average annual increase in sales and profit. Key strategic pillars include the creation of global intellectual properties capable of selling 5 million units and the development of smartphone titles generating 1 billion yen in monthly profit. A major focus is placed on a three-year expansion plan into the Chinese market and the reevaluation of global offices to strengthen digital marketing and community engagement. For the fiscal year ending March 2019, the company projects continued growth with a sales target of 41 billion yen. To support these objectives, management is accelerating leadership transitions and maintaining a shareholder-friendly payout policy of 50%. Capital expenditure plans also include the development of a new office in Minato Mirai to modernize infrastructure and support the cultivation of global-oriented producers and directors.

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