FinancialKoei Tecmo
FY2020 3rd Quarter Presentation Materials
1 Jan 202114 pages~5 min full read
Koei Tecmo achieved record-high performance in Q3 FY2020, with year-to-date sales reaching 43.9 billion yen (a 64.7% increase) and operating profit surging 201.2% to 19.3 billion yen.
Overseas markets became the primary revenue source, growing 124.7% to account for more than 50% of total company revenue.
The company upwardly revised its full-year operating profit forecast from 17 billion yen to 22 billion yen due to strong quarterly results.
Console software performance was led by Hyrule Warriors: Age of Calamity with 3.5 million units sold and Nioh 2, which surpassed 1.4 million units.
Smartphone and social game revenue increased 86.5% year-over-year, driven by the success of Romance of the Three Kingdoms Ha-do and licensed mobile titles.
Koei Tecmo maintains a 50% consolidated payout ratio, reflecting a commitment to shareholder returns following its strengthened financial position.
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.
