FinancialKoei Tecmo
Financial Results for the First Quarter of the Fiscal Year Ending March 2022
1 Jul 202113 pages~7 min full read
Koei Tecmo achieved record-high Q1 results for the fiscal year ending March 2022, with net sales rising 80.6% to 20.52 billion yen and operating profit increasing 121.5% to 9.72 billion yen.
The entertainment segment drove the majority of revenue at 19.65 billion yen, fueled by a strong console lineup including Samurai Warriors 5 and significant growth in smartphone and social game titles.
Smartphone and social game revenues nearly doubled year-over-year, supported by the success of Romance of the Three Kingdoms Ha-do and IP licensing agreements like Three Kingdoms Tactics.
Digital adoption for console software accelerated significantly, with the digital download ratio increasing to 61.2% compared to 49.1% in the prior year.
Overseas markets accounted for 51.3% of total sales, though Japan experienced the most substantial growth with a 129.8% year-over-year increase.
The company issued an upward revision for half-year earnings estimates but maintained its full-year forecast due to potential volatility in global securities markets and uncertainty regarding second-half IP licensing revenue.
Future growth strategy centers on a multi-platform approach and the expansion of key mobile titles into international markets, specifically Taiwan and China.
Koei Tecmo Holdings reported record-high performance for the first quarter of the fiscal year ending March 2022, characterized by significant year-over-year growth across all primary financial metrics. Net sales reached 20.52 billion yen, an 80.6% increase over the previous year, while operating profit surged 121.5% to 9.72 billion yen. This growth was driven by a robust console software lineup, including the launch of Samurai Warriors 5 and various remastered titles, alongside strong performance in the online and mobile segments.
The entertainment segment remained the primary revenue driver, contributing 19.65 billion yen to total sales. Within this segment, smartphone and social game revenues nearly doubled, bolstered by the success of Romance of the Three Kingdoms Ha-do and lucrative IP licensing-out agreements, such as Three Kingdoms Tactics in Japan. Geographically, the company maintained a balanced revenue split, with overseas markets accounting for 51.3% of total sales, though Japan saw the most dramatic year-over-year growth at 129.8%. Digital sales continued to gain prominence, with the digital download ratio for console units rising to 61.2% from 49.1% in the prior year.
Based on these strong results, the company issued an upward revision for its half-year earnings estimates. However, it maintained its original full-year forecast due to potential volatility in the global securities market affecting non-operating income and uncertainties regarding the timing of IP licensing revenue in the second half of the year. Future growth strategies focus on a multi-platform approach and the global expansion of key mobile titles into markets such as Taiwan and China.
