Financial Highlights for the 1st Half of the Fiscal Year Ending March 2020 (FY2019)

Koei Tecmo Holdings reported a moderate decline in financial performance for the first half of the fiscal year ending March 2020. During the six-month period concluding September 30, 2019, net sales reached 16.56 billion yen, representing a 4.8% decrease compared to the same period in the previous year. Operating income saw a more significant contraction, falling 26.6% to 3.44 billion yen, while net income declined by 5.7% to 5.93 billion yen.

The entertainment segment remains the primary driver of the company’s business, accounting for 14.87 billion yen in sales, though it experienced a 5.0% year-over-year decrease. Other business units, including amusement and real estate, also reported lower sales and operating income. Despite the downward trend in the first half, the full-year forecast remains optimistic regarding top-line growth, projecting total net sales of 43.0 billion yen, which would constitute a 10.3% increase over the prior full fiscal year. However, full-year net income is expected to decrease by 5.1% to 13.0 billion yen.

The consolidated balance sheet indicates a strong asset position, with total assets valued at 125.75 billion yen. A substantial portion of the company’s value is held in fixed assets, specifically 74.4 billion yen in investment securities. Shareholders' equity remains robust at 118.67 billion yen, contributing to a total net asset value of 118.12 billion yen. The data reflects a period of transition where short-term earnings have softened, yet the company maintains a stable capital base and anticipates a recovery in sales volume by the end of the fiscal year.