FinancialKoei Tecmo
Financial Results for the First Half of the Fiscal Year Ending March 2020: Japan
28 pages~16 min full read
Koei Tecmo’s first-half fiscal 2019 sales fell 4.8% to ¥17.407 billion, while operating profit dropped 26.6% to ¥3.439 billion due to higher fixed development costs and a 21.2% decline in console package sales.
See it on page 2Net profit remained stable at ¥5.931 billion, bolstered by an 18.6% increase in non-operating income derived from real-estate sales and property disposals.
See it on page 5The company maintains its mid-term targets for FY2020, aiming for ¥43 billion in sales and ¥12 billion in operating profit, supported by a strategy to launch a 5-million-copy console title and a ¥1-billion-monthly mobile title.
See it on page 15Digital unit sales surged 140%, with overseas digital penetration reaching 78%, even as total entertainment revenue fell 10.8%.
See it on page 6Geographic performance was mixed, with Japan sales declining 6.4% to account for 65% of total revenue, while North American revenue grew 28.1% to ¥2.195 billion.
See it on page 6The sales shortfall was primarily attributed to delayed console releases, specifically 'Attack on Titan 2' and 'Fire Emblem: Three Houses,' despite steady performance from online titles like 'Uncharted Waters VI' and the 'Three Kingdoms' series.
See it on page 3Future investment plans include a ¥13.866 billion real-estate project and continued increases in development expenditures to support global IP expansion and multi-platform releases.
See it on page 13Koei Tecmo Holdings Co., Ltd. reports first‑half fiscal 2019 results ending March 2020, showing a 4.8 % decline in sales to ¥17.407 billion versus the previous year, driven by a 21.2 % drop in console package sales and a 10.8 % fall in total entertainment revenue, while online/mobile segments grew modestly. Operating profit fell 26.6 % to ¥3.439 billion, largely due to higher fixed costs from expanded development capacity and lower gains on securities. Ordinary profit decreased 29.2 % to ¥6.077 billion, yet net profit remained near the prior year at ¥5.931 billion, supported by a 18.6 % rise in non‑operating income from real‑estate sales and an extraordinary gain on property disposal. The company attributes the sales shortfall to delayed console releases, notably “Attack on Titan 2” and “Fire Emblem: Three Houses,” while online titles such as “Uncharted Waters VI” and the “Three Kingdoms” series maintained strong performance.
Geographically, Japan accounts for 65 % of sales with a 6.4 % YoY decline, whereas overseas revenue rose 1.9 % to ¥5.814 billion; North America contributed the largest growth (28.1 %) at ¥2.195 billion. Digital sales increased 140 % in units, with overseas digital penetration reaching 78 %. The company’s mid‑term plan remains unchanged: target FY2020 sales of ¥43 billion, operating profit of ¥12 billion, and net profit of ¥13 billion, with a focus on launching a 5‑million‑copy console title and a mobile title generating ¥1 billion monthly. Investment plans include a ¥13.866 billion real‑estate project and increased development expenditures, reflecting an emphasis on expanding global IPs and multi‑platform releases.
