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).
02
The 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.
03
Strategic growth targets include developing AAA titles with 5 million unit sales and smartphone games capable of generating 1 billion yen in monthly revenue.
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While 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.
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Japan 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.
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Key product milestones included the Nioh franchise surpassing 2 million copies and the successful mobile performance of Shin-Sangoku-shi and Dynasty Warriors: Unleashed.
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The 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.
Insights
01
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).
02
The 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.
03
Strategic growth targets include developing AAA titles with 5 million unit sales and smartphone games capable of generating 1 billion yen in monthly revenue.
04
While 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.
05
Japan 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.
06
Key product milestones included the Nioh franchise surpassing 2 million copies and the successful mobile performance of Shin-Sangoku-shi and Dynasty Warriors: Unleashed.
07
The 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.