Financial Highlights: Q1 FY2018

Key insights

6 takeaways · ~2 min read

01
KOEI TECMO HOLDINGS reported a 24.4% year-over-year increase in net sales to ¥38.9 billion for Q1 FY2018, driven primarily by a 27.9% rise in entertainment segment revenue to ¥35.4 billion.See it on page 1
02
Operating income surged 133.0% to ¥11.7 billion, fueled by a 162.2% jump in entertainment operating profit to ¥10.9 billion.See it on page 1
03
Net income grew 7.2% to ¥13.0 billion, despite an 8.5% decline in income before taxes and minority interests.See it on page 1
04
Performance in non-entertainment segments was mixed, with amusement facilities revenue growing 11.0% to ¥1.5 billion, while pachislot & pachinko sales fell 22.7% to ¥945 million.See it on page 1
05
Total assets decreased to ¥121.8 billion as of June 30, 2018, down from ¥128.6 billion the previous year due to reductions in current assets and investment securities.See it on page 2
06
The company improved its liquidity position during the quarter, as current liabilities dropped from ¥11.0 billion to ¥7.9 billion.See it on page 2

Summary

Financial highlights for the first quarter of fiscal year 2018 demonstrate robust growth across KOEI TECMO HOLDINGS’ core entertainment segment, with net sales rising 24.4% year‑over‑year to ¥38.9 billion, driven by a 27.9% increase in entertainment revenue to ¥35.4 billion. Operating income surged 133.0% to ¥11.7 billion, largely from a 162.2% jump in entertainment operating profit to ¥10.9 billion, while other segments such as pachislot & pachinko and amusement facilities showed mixed performance. Net income increased 7.2% to ¥13.0 billion, though the company reported a slight decline in income before taxes and minority interests by 8.5%.

Segment analysis reveals that pachislot & pachinko sales fell 22.7% to ¥945 million, whereas amusement facilities grew 11.0% to ¥1.5 billion. Real estate revenue increased 6.9% to ¥784 million, and the “Other” segment contracted 29.5% to ¥584 million. Corporate eliminations contributed a negative ¥313 million in the quarter.

Balance‑sheet data as of June 30, 2018 show total assets at ¥121.8 billion, down from ¥128.6 billion the previous year, primarily due to a reduction in current assets and investment securities. Current liabilities decreased to ¥7.9 billion from ¥11.0 billion, improving the current ratio. Shareholders’ equity stood at ¥109.5 billion, with retained earnings slightly lower than the prior year.

Overall, the quarter reflects strong profitability in entertainment, modest declines in ancillary segments, and a solid liquidity position, positioning the company for continued growth into the remainder of FY2018.