Financial Highlights for the 1st Half of the Fiscal Year Ending March 2019 (FY2018)

Koei Tecmo Holdings reported strong financial growth for the first half of the fiscal year ending March 2019, characterized by double-digit increases across all major profitability metrics. Net sales reached 17.4 billion yen, representing a 16.7% increase over the same period in the previous year. Operating income saw a more dramatic rise of 64.3%, totaling 4.68 billion yen, while net income grew by 24.9% to reach 6.29 billion yen. These results indicate a high level of operational efficiency, as gross profit margins expanded significantly during the period.

The Entertainment segment remains the primary driver of the company’s business, contributing 15.65 billion yen in sales and 4.18 billion yen in operating income. Other business units also showed notable momentum; the Pachislot & Pachinko segment grew its revenue by 55.3%, and the Amusement Facilities segment successfully transitioned from an operating loss in the prior year to a profit. While the company maintains a positive outlook for the full fiscal year with a sales forecast of 41 billion yen, the projections suggest a more conservative second half, with anticipated slight year-over-year declines in full-year pre-tax and net income.

The consolidated balance sheet as of September 30, 2018, reflects a robust financial position with total assets of 126.6 billion yen. A significant portion of the company’s value is held in investment securities, totaling nearly 75 billion yen. Shareholders' equity remains strong at 112.9 billion yen, and the company maintains a low debt profile, with total liabilities decreasing to 9.5 billion yen from 12.3 billion yen at the start of the fiscal year. This financial stability provides a solid foundation for the company’s continued expansion in the global entertainment market.