FinancialKoei Tecmo
Fiscal Year Ending March 2019: 1st Half Financial Results
1 Jan 201826 pages~12 min full read
Koei Tecmo achieved record-breaking H1 FY2019 results with net sales of 17.4 billion yen (up 16.7% YoY) and operating profit of 4.68 billion yen (up 64.3% YoY).
See it on page 2The company’s operating profit ratio improved to 26.9%, driven primarily by high-margin royalty income from licensed titles and strong performance in the smartphone sector.
See it on page 14Strategic growth targets include developing AAA titles with 5 million unit sales and smartphone games capable of generating 1 billion yen in monthly revenue.
See it on page 25While packaged software unit sales declined 6.6% to 2.39 million units, the company successfully offset this decrease through growth in digital sales and licensing.
See it on page 23Japan remains the primary market at 66% of total sales, but the Asia region experienced the most significant expansion with a 46.1% increase in revenue.
See it on page 10Key product milestones included the Nioh franchise surpassing 2 million copies and the successful mobile performance of Shin-Sangoku-shi and Dynasty Warriors: Unleashed.
See it on page 3The mid-term management plan targets 51 billion yen in sales and 21 billion yen in ordinary profit by FY2020, supported by upcoming releases like Dead or Alive 6 and Nioh 2.
See it on page 16Koei Tecmo Holdings reported record-breaking financial results for the first half of the fiscal year ending March 2019, characterized by significant growth in profitability and the expansion of its global intellectual property (IP) portfolio. Net sales reached 17.4 billion yen, a 16.7% increase year-over-year, while operating profit surged by 64.3% to 4.68 billion yen. This performance was driven by high-margin royalty income from licensed titles and the continued success of the smartphone game sector, resulting in an improved operating profit ratio of 26.9%.
The strategic focus centers on three primary pillars: creating global AAA titles with sales targets of 5 million copies, developing smartphone titles capable of generating 1 billion yen in monthly revenue, and collaborating with leading overseas IPs. Key product milestones during this period included the continued success of Nioh, which surpassed 2 million copies, and the strong performance of licensed mobile titles like Shin-Sangoku-shi and Dynasty Warriors: Unleashed, both of which achieved high rankings on the App Store and Google Play in Japan.
Geographically, Japan remains the largest market, accounting for approximately 66% of sales, though the Asia region saw the most dramatic growth with a 46.1% increase in revenue. While unit sales for packaged software saw a slight decline of 6.6% to 2.39 million units, the company offset this through digital growth and licensing. Looking forward, the mid-term management plan aims for 51 billion yen in sales and 21 billion yen in ordinary profit by fiscal year 2020, supported by upcoming major releases such as Dead or Alive 6 and Nioh 2, alongside a full-scale entry into the Chinese market and the completion of a new office in Minato Mirai.
