FinancialKoei Tecmo
Financial Results for the First Half of the Fiscal Year Ending March 2021
26 Oct 202026 pages~15 min full read
Koei Tecmo achieved record-high H1 results for the fiscal year ending March 2021, with sales rising 39.7% to ¥23.1 billion and operating profit surging 145.6% to ¥8.4 billion.
The company upwardly revised its full-year ordinary profit forecast to ¥25 billion, supported by strong digital momentum and high-margin royalty income.
The licensed mobile title 'Romance of the Three Kingdoms Senryaku-ban' was a primary growth driver, maintaining a top-three sales ranking in China for seven consecutive months.
Management delayed the launch of a major new IP, targeted for five million unit sales, to fiscal year 2022 to ensure quality and alignment with next-generation hardware.
A 1:1.3 stock split is scheduled for April 2021 as a mechanism to enhance shareholder value and reflect the company's strong financial position.
Digital and licensing performance successfully offset a ¥124 million extraordinary loss incurred from COVID-19 impacts on physical amusement facilities.
Future growth strategy focuses on internal game engine optimization, multi-platform global releases, and developing new IPs into long-term series.
Koei Tecmo achieved record-high financial performance during the first half of the fiscal year ending March 2021, characterized by a 39.7% increase in sales to ¥23.1 billion and a 145.6% surge in operating profit to ¥8.4 billion. This growth was primarily catalyzed by a multi-tiered revenue structure that emphasizes high-margin royalty income from intellectual property licensing and robust performance in the mobile segment. Notably, the licensed title Romance of the Three Kingdoms Senryaku-ban maintained a top-three sales ranking in the Chinese market for seven consecutive months, illustrating the success of the company’s global expansion strategy.
The entertainment segment further benefited from steady back-catalog sales of established titles such as Nioh 2 and Atelier Ryza. While the company incurred a minor extraordinary loss of ¥124 million due to COVID-19 impacts on physical amusement facilities, the overall digital and licensing momentum more than offset these pressures. Strategic management decisions included shifting the launch of a major new IP, targeted for five million units in sales, to fiscal year 2022 to maximize quality and align with the capabilities of next-generation hardware.
Based on these results, the full-year ordinary profit forecast has been upwardly revised to ¥25 billion. Management intends to sustain this positive growth cycle through a combination of internal game engine optimization, multi-platform global releases, and the transition of successful new IPs into long-term series. To reflect this strong financial position and enhance shareholder value, a 1:1.3 stock split is scheduled for April 2021, signaling confidence in the company’s ability to meet its mid-term management objectives through continued international scaling and high-quality project management.
