Financial

Fiscal Year Ending March 2019 Financial Results

26 April 201936 pages2,377 words

Summary

Koei Tecmo achieved record-high profitability during the fiscal year ending March 2019, marking its ninth consecutive year of profit growth. Despite a 20.2% decline in total unit sales, net income rose 5.2% to 13.69 billion yen. This financial resilience is attributed to a strategic shift toward high-margin digital sales and IP licensing. Looking toward fiscal year 2020, the company aims to reach 51 billion yen in total sales, supported by a projected 61.4% recovery in overseas unit sales and a 10.3% increase in group-wide revenue. The strategic roadmap centers on three primary milestones: the launch of a new AAA title capable of selling 5 million units, the development of a smartphone game generating 1 billion yen in monthly revenue, and a comprehensive expansion into the Chinese market. To facilitate this global growth, the company is reevaluating the roles of its international offices and intensifying digital marketing efforts across Asia. Major franchises such as Nioh 2 and Dynasty Warriors remain central to this multi-platform approach, which balances original titles based on an Oriental worldview with high-profile collaborative projects. Shareholder returns remain a priority, evidenced by a 62.03% payout ratio and the issuance of a special dividend for the 2018 fiscal year. By leveraging its intellectual property across console and mobile sectors while expanding its footprint in China, the company seeks to solidify its position as a global entertainment leader. This transition from domestic stability to aggressive international expansion defines the current mid-term plan, focusing on high-volume individual titles and sustainable mobile revenue streams to drive long-term value.

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KOEI TECMO HOLDINGS CO., LTD.Apr 2021

Fiscal Year Ending March 2019 Financial Results

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