FinancialKoei Tecmo
Financial Results for the First Quarter of the Fiscal Year Ending March 2021
1 Jul 202012 pages~7 min full read
Koei Tecmo achieved record-high Q1 fiscal 2021 performance with net sales of 11.36 billion yen (up 57.2% YoY) and operating profit of 4.38 billion yen (up 358.6% YoY).
Profitability was driven by high-margin royalty income from the licensed title 'Romance of the Three Kingdoms Senryaku-ban' in China and strong back-catalogue sales of 'Nioh 2', which exceeded one million units.
Overseas revenue grew significantly to 61.7% of total sales, up from 39.5% in the previous year, with Asia (excluding Japan) accounting for 40.6% of the total.
The amusement segment reported an extraordinary loss of 124 million yen due to COVID-19-related facility closures in April and May 2020.
The company declined to provide full-year earnings estimates for the fiscal year ending March 2021, citing ongoing pandemic-related uncertainty.
Strategic priorities include developing a console title targeting five million units in sales and expanding mobile market presence through partnerships like 'Dynasty Warriors: Ha' with Tencent.
Koei Tecmo Holdings reported record-high financial performance for the first quarter of the fiscal year ending March 2021, characterized by significant growth in profitability despite a lack of major new title launches. Net sales reached 11.36 billion yen, a 57.2% increase year-over-year, while operating profit surged by 358.6% to 4.38 billion yen. This performance was primarily driven by high-margin royalty income from the IP licensing-out title Romance of the Three Kingdoms Senryaku-ban in China and robust back-catalogue sales for Nioh 2, which surpassed one million total units sold during the period.
The geographic scope of the results highlights a shift toward international markets, with overseas sales accounting for 61.7% of total revenue, up from 39.5% the previous year. Asia, excluding Japan, emerged as a dominant region, contributing 40.6% of total sales. While the entertainment segment flourished, the amusement segment suffered due to COVID-19, with facility operations temporarily shut down in April and May, resulting in an extraordinary loss of 124 million yen.
The methodology for these results involves consolidated financial reporting across the company’s entertainment, amusement, and real estate segments for the period of April to June 2020. Looking forward, the company declined to provide a full-year earnings estimate due to ongoing pandemic uncertainties. However, strategic priorities include the development of a console title aimed at five million sales and the expansion of mobile titles, such as the upcoming Dynasty Warriors: Ha published by Tencent, to maintain momentum in the licensing and digital markets.
