FinancialKoei Tecmo
Financial Results: For the Fiscal Year Ending March 2021
1 Apr 202142 pages~15 min full read
Koei Tecmo achieved record-breaking fiscal 2021 results with net sales rising 41.6% to ¥60.37 billion and net profit surging 93.1% to ¥29.55 billion.
Growth was driven by the Entertainment segment, highlighted by an 80.9% increase in mobile revenue and a near-doubling of overseas sales.
The company’s strategy of leveraging console IP into mobile and licensing deals has resulted in 99 million cumulative downloads, with 70% of that user base located overseas.
Key titles such as 'Hyrule Warriors: Age of Calamity' and the 5-million-unit-selling 'Nioh' franchise serve as the primary models for the company's current growth and IP expansion strategy.
The medium-term management plan through fiscal 2023 targets ¥90 billion in sales and ¥30 billion in operating profit, supported by new high-budget IP and a robust mobile pipeline.
Projections for the upcoming fiscal year estimate a 7.7% increase in net sales to ¥65 billion, though net profit is expected to dip to ¥26.5 billion due to market shifts.
The company maintains a shareholder-focused financial policy with a 50% consolidated payout ratio while continuing to prioritize reinvestment in global intellectual property.
Koei Tecmo achieved record-breaking financial performance during the fiscal year ending March 2021, characterized by a 41.6% increase in net sales to ¥60.37 billion and a 93.1% surge in net profit to ¥29.55 billion. This growth was primarily catalyzed by the Entertainment segment, where overseas sales nearly doubled and mobile revenue rose by 80.9%. Success was driven by high-profile releases such as Hyrule Warriors: Age of Calamity and the strategic licensing of core intellectual properties, particularly the Romance of the Three Kingdoms series, which bolstered the company’s presence in the global smartphone market.
The strategic framework relies on a multi-layered revenue cycle that maximizes the lifecycle of established intellectual property through cross-platform expansion and international collaborations. By leveraging console-originated IP into mobile spin-offs and licensing agreements, the company has reached 99 million cumulative downloads with a 70% overseas ratio. The successful establishment of the Nioh franchise, which reached 5 million units sold, serves as a blueprint for future growth. The medium-term management plan through fiscal year 2023 targets ¥90 billion in sales and ¥30 billion in operating profit, supported by the development of new high-budget IP and a robust pipeline of smartphone titles.
For the upcoming fiscal year, projections indicate a 7.7% increase in total net sales to ¥65 billion, though net profit is expected to moderate slightly to ¥26.5 billion due to increased competition and shifting market conditions. While overseas console unit sales are forecasted to decline, a 14.5% increase in digital downloads and mobile engagement is expected to offset these losses. The company remains committed to a shareholder-focused financial policy, maintaining a 50% consolidated payout ratio while reinvesting in global IP expansion to ensure long-term sustainability across the Japanese and international markets.
