Financial Highlights for the Fiscal Year Ending March 2020 (FY2019)

Koei Tecmo Holdings reported a decline in financial performance for the first quarter of the fiscal year ending March 2020, covering the period through June 30, 2019. Net sales for the quarter reached 7.23 billion yen, a 10.9% decrease compared to the same period in the previous year. This downturn was more pronounced in profitability metrics, as operating income fell by 58.3% to 956 million yen, and net income dropped 22.1% to 2.21 billion yen. Despite these quarterly contractions, the company maintains a positive full-year outlook, forecasting a 10.3% increase in annual net sales to 43 billion yen.

The Entertainment segment, which represents the core of the company’s business, was the primary driver of the quarterly decline, with sales falling 13.4% and operating income decreasing 65.4% year-over-year. In contrast, the Amusement segment showed significant growth, with sales rising 26.9% and operating income surging 178.6%. Other smaller segments, such as Real Estate, saw a reduction in revenue and profit, while the miscellaneous "Other" category experienced modest gains.

The consolidated balance sheet as of June 30, 2019, shows total assets of 123.1 billion yen, a slight decrease from the 129.2 billion yen reported at the end of the prior fiscal year. This change was largely driven by a reduction in notes and accounts receivable and a decrease in cash and time deposits. The company’s financial position remains characterized by a heavy weighting toward investment securities, which total 76.8 billion yen, accounting for over 60% of total assets. Total net assets stood at 114.4 billion yen, reflecting a stable equity ratio despite the quarterly fluctuations in operational income.