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Financial
Financial Results for the First Half of the Fiscal Year Ending March 2023
Koei Tecmo’s financial performance for the first half of the fiscal year ending March 2023 reflects a strategic transition toward large-scale global expansion and long-term intellectual property development. While net sales experienced a slight year-on-year decline of 6.6% to 34.76 billion yen, operating profit grew by 11.6% to 18.32 billion yen. This growth was supported by a 28.2% increase in software unit sales, totaling 4.68 million units, led by the success of titles such as Fire Emblem Warriors: Three Hopes. Despite a drop in net profit caused by lower non-operating income, the company remains on track to meet its full-year sales forecast of 77 billion yen. The current fiscal year serves as the foundation for a medium-term management plan spanning through FY2024, which aims to achieve 100 billion yen in sales and 40 billion yen in operating profit. Central to this strategy is the pursuit of a new global intellectual property capable of selling five million units, supported by a pipeline of annual releases targeting two million units each. Upcoming major titles like Wild Hearts and Wo Long: Fallen Dynasty are critical to this international push, as overseas markets are projected to account for over 71% of total unit sales. Operational stability and technical efficiency underpin these ambitious financial targets. The company leverages its proprietary Katana Engine to streamline development across a multi-layered revenue cycle that includes console software, mobile gaming, and IP licensing. With a focus on high-growth segments, the company seeks to establish mobile titles generating monthly revenues between one and two billion yen. Furthermore, a twelve-year streak of profitability and an industry-leading low employee turnover rate of 4.2% provide the organizational continuity necessary to execute these high-cost, high-reward global projects.
Koei TecmoOct 2022
Financial
Financial Results for the First Half of the Fiscal Year Ending March 2021
Koei Tecmo achieved record-high financial performance during the first half of the fiscal year ending March 2021, characterized by a 39.7% increase in sales to ¥23.1 billion and a 145.6% surge in operating profit to ¥8.4 billion. This growth was primarily catalyzed by a multi-tiered revenue structure that emphasizes high-margin royalty income from intellectual property licensing and robust performance in the mobile segment. Notably, the licensed title Romance of the Three Kingdoms Senryaku-ban maintained a top-three sales ranking in the Chinese market for seven consecutive months, illustrating the success of the company’s global expansion strategy. The entertainment segment further benefited from steady back-catalog sales of established titles such as Nioh 2 and Atelier Ryza. While the company incurred a minor extraordinary loss of ¥124 million due to COVID-19 impacts on physical amusement facilities, the overall digital and licensing momentum more than offset these pressures. Strategic management decisions included shifting the launch of a major new IP, targeted for five million units in sales, to fiscal year 2022 to maximize quality and align with the capabilities of next-generation hardware. Based on these results, the full-year ordinary profit forecast has been upwardly revised to ¥25 billion. Management intends to sustain this positive growth cycle through a combination of internal game engine optimization, multi-platform global releases, and the transition of successful new IPs into long-term series. To reflect this strong financial position and enhance shareholder value, a 1:1.3 stock split is scheduled for April 2021, signaling confidence in the company’s ability to meet its mid-term management objectives through continued international scaling and high-quality project management.
Koei TecmoOct 2020
Financial
Financial Results for the First Half of the Fiscal Year Ending March 2020
Koei Tecmo reported a 4.8% year-on-year decrease in sales to ¥16.56 billion and a 26.6% drop in operating profit for the first half of the fiscal year ending March 2020. These declines were primarily driven by lower console sales and rising development costs associated with future projects. However, ordinary and net profits exceeded initial projections due to robust non-operating income and significant growth in the online and mobile segments. This success was largely fueled by IP licensing and the performance of smartphone titles, which helped offset the impact of increased fixed costs related to the completion of the Minato-Mirai office and expanded development teams. The current fiscal year serves as a strategic preparation period for the company’s 2020 mid-term goals. Despite the early dip in operating profit, the full-year forecast remains unchanged at ¥43 billion in sales, representing a 10.3% year-on-year increase. This growth is expected to be driven by a 29.6% surge in overseas sales and a 61.4% rise in international console unit volume. Recent successes, such as the strong performance of Atelier Ryza and the critical acclaim for co-developed titles like Fire Emblem: Three Houses, provide a foundation for this expansion. Long-term strategy focuses on the creation of global intellectual properties and multi-platform expansion. The company is targeting an operating profit of ¥17 billion by the end of the next fiscal year, supported by the development of a major AAA console title aimed at selling five million units and a top-tier mobile title capable of generating ¥1 billion in monthly revenue. With a pipeline featuring high-profile releases such as Nioh 2 and Persona 5 Scramble, the company aims to leverage its royalty income and international reach to achieve sustainable growth across the global gaming market.
Koei TecmoOct 2019
Financial
Financial Results for the First Half of the Fiscal Year Ending March 2024
Koei Tecmo achieved record-high sales of ¥39.7 billion during the first half of the fiscal year ending March 2024, representing a 14.3% year-on-year increase. This growth was primarily fueled by the successful launch of Fate/Samurai Remnant and record performance within the mobile gaming segment, specifically through titles like Atelier Resleriana. While operating profit experienced a 24.4% decline to ¥13.8 billion due to increased labor and subcontracting expenses, ordinary profit rose significantly by 31.3% to ¥23.2 billion. These results reflect a robust financial position as the company pursues its Third Medium-Term Management Plan, which targets ¥100 billion in annual sales and ¥40 billion in operating profit by the end of fiscal year 2024. The strategic focus remains on a multi-layered revenue cycle that prioritizes global intellectual property expansion and high-performance smartphone titles. Projections for the full fiscal year anticipate ¥95 billion in net sales, supported by a 37.9% increase in the Japanese market and a 22.6% rise in overseas unit sales. To sustain this momentum, the company is leveraging its proprietary Katana Engine and a disciplined project management framework to ensure consistent profitability across multi-platform releases. Key upcoming titles, such as Rise of the Ronin, are central to the objective of establishing new global franchises capable of selling five million units. Long-term stability is anchored in a combination of IP licensing and internal human capital development. The company has implemented eight consecutive years of base salary increases to foster innovation and maintain a competitive edge in technical proficiency. By balancing established franchises like Romance of the Three Kingdoms and Warriors with new collaborations and digital-first strategies, the organization aims to mitigate development risks while maximizing the lifecycle of its core assets across global markets.
Koei TecmoOct 2023