FY2020 3rd Quarter Presentation Materials

Koei Tecmo Holdings reported record-high financial performance for the third quarter of fiscal year 2020, ending December 31, 2020. Driven by strong global software sales and high non-operating income, the company achieved an operating profit of 10.9 billion yen in a single quarter. Year-to-date sales reached 43.9 billion yen, a 64.7% increase over the previous year, while operating profit surged by 201.2% to 19.3 billion yen. This growth was balanced across geographic regions, with overseas sales increasing by 124.7% to account for over 50% of total revenue.

The primary drivers of this performance were major console releases and successful mobile IP licensing. Hyrule Warriors: Age of Calamity emerged as a significant hit, selling over 3.5 million units globally. Other notable contributors included Atelier Ryza 2 and the continued performance of the back-catalogue title Nioh 2, which surpassed 1.4 million units. In the mobile and online segment, Romance of the Three Kingdoms Ha-do and the licensed title Romance of the Three Kingdoms Senryaku-ban maintained strong momentum, contributing to an 86.5% year-over-year increase in smartphone and social game revenue.

Based on these results, the company upwardly revised its full-year earnings estimates and dividend forecasts. The full-year operating profit outlook was raised from 17 billion yen to 22 billion yen. Future growth strategies focus on multi-platform global expansions, including the Western release of Persona 5 Strikers and the launch of Dynasty Warriors mobile titles in Japan and China. The company maintains a policy of a 50% consolidated payout ratio, reflecting its strengthened financial position and commitment to shareholder returns.