Financial Results for the First Quarter: Fiscal Year Ending March 2022

The financial overview for the first quarter of fiscal 2022 highlights a robust performance driven by new console releases and strong back‑catalogue sales. Total revenue rose 80.6 % from ¥11,363 million to ¥20,520 million, with operating profit more than doubling from ¥4,387 million to ¥9,718 million (121.5 % increase). Ordinary and net profits also surged by 105.5 % and 101.9 %, respectively, reflecting higher margins across the entertainment segment.

Revenue composition shifted toward console titles, which accounted for 48.7 % of sales in the overseas market and 38.3 % domestically, supported by launches such as *Samurai Warriors 5* and remastered collections like *Ninja Gaiden: Master Collection*. Online/mobile sales grew 55.8 % in download volume, with the Romance of the Three Kingdoms series expanding into licensing‑out agreements. Non‑operating income benefited from gains on investment securities, prompting an upward revision of the half‑year earnings estimate.

Geographically, Japan contributed 38.3 % of sales while overseas markets grew by 51.3 %, with North America and Europe showing mixed results—North America doubled its unit sales, whereas European units fell 26.3 %. Headcount increased by 2.5 % to 2,088 employees, and cost of goods sold rose 22.6 %, largely due to higher production for new titles.

Methodologically, the report aggregates quarterly financial statements, sales data by platform and region, and download metrics from the company’s global service portfolio. The analysis underscores a strategic focus on IP licensing, back‑catalogue monetization, and digital distribution to sustain growth in the second half of fiscal 2022.