FinancialKoei Tecmo
Financial Highlights for the 3rd Quarter of the Fiscal Year Ending March 2020 (FY2019)
1 Jan 20202 pages~3 min full read
Koei Tecmo reported net income of 9.72 billion yen for the nine-month period ending December 31, 2019, marking a 14.8% year-over-year increase despite a 9.5% decline in operating income to 6.43 billion yen.
The Entertainment segment remains the company's primary revenue driver, generating 24.13 billion yen in sales, a 0.9% increase compared to the same period in the previous year.
Total assets grew to 139.05 billion yen by the end of the third quarter, fueled primarily by an increase in investment securities from 76.36 billion yen to 87.30 billion yen.
Net sales for the nine-month period totaled 26.68 billion yen, a marginal 0.5% decrease compared to the same period in the prior fiscal year.
Non-entertainment segments, including Amusement, Real Estate, and Other businesses, all recorded double-digit declines in both sales and operating income.
The full-year forecast projects a 10.3% increase in sales to 43 billion yen, but anticipates a 5.1% decline in net income compared to the previous fiscal year.
Koei Tecmo Holdings Co., Ltd. presents its financial performance for the third quarter of the fiscal year ending March 2020, covering the nine-month period ending December 31, 2019. The data reflects a period of mixed financial results characterized by a slight decline in top-line revenue and operating income, contrasted by significant growth in net income and total assets. The primary focus of the analysis is the Entertainment segment, which remains the dominant driver of the company’s business operations.
Net sales for the third quarter reached 26.68 billion yen, representing a marginal 0.5% decrease compared to the same period in the previous year. Operating income saw a more pronounced decline of 9.5%, falling to 6.43 billion yen. Despite these contractions in core operational profitability, income before taxes rose by 10.6% to 12.68 billion yen, and net income increased by 14.8% to 9.72 billion yen. This discrepancy suggests strong non-operating performance, likely tied to the company’s investment activities.
The Entertainment segment contributed the vast majority of revenue at 24.13 billion yen, showing a slight year-over-year increase of 0.9%. Other segments, including Amusement, Real Estate, and Other businesses, all experienced double-digit declines in both sales and operating income during the quarter. Geographically and operationally, the company maintains a robust balance sheet, with total assets increasing from 129.19 billion yen at the end of the prior fiscal year to 139.05 billion yen. This growth was largely driven by a substantial increase in investment securities, which rose from 76.36 billion yen to 87.30 billion yen.
Looking ahead, the full-year forecast anticipates a recovery in sales to 43 billion yen, a 10.3% increase over the previous year's results. However, the company expects a slight 0.8% decrease in full-year operating income and a 5.1% decline in net income compared to the prior year's totals, indicating a cautious outlook for the final quarter of the fiscal year.
