Financial Results for the First Half of the Fiscal Year Ending March 2022

Koei Tecmo achieved record-breaking financial performance during the first half of the fiscal year ending March 2022, characterized by a 60.8% increase in sales to ¥37.2 billion and a 94.4% surge in operating profit to ¥16.4 billion. This growth was primarily catalyzed by the Entertainment segment, where smartphone and social game revenue nearly doubled. While digital console sales saw a significant 53.3% increase in units sold, the company remains cautious regarding its full-year outlook, maintaining a ¥65 billion sales forecast due to the potential stabilization of pandemic-driven demand and broader global economic volatility.

The strategic shift toward online and mobile sectors has proven successful, led by the sustained performance of titles such as Romance of the Three Kingdoms Ha-do and Three Kingdoms Tactics. Although total console unit sales are projected to experience a slight 7% year-over-year decline to 9.4 million units, mobile downloads are expected to rise by 14.5% to over 113 million. These results support a medium-term objective to reach ¥90 billion in annual sales by fiscal year 2023, underpinned by a development pipeline focused on high-profile intellectual properties and the proprietary Katana Engine for efficient multi-platform deployment.

Future expansion relies on a multi-layered revenue model that combines internal IP development, such as the cross-media expansion of Blue Reflection, with global collaborations like Stranger of Paradise: Final Fantasy Origin. The long-term growth strategy prioritizes the establishment of new global franchises capable of selling five million units and the launch of smartphone titles targeting monthly revenues of ¥2 billion. By leveraging IP licensing and international partnerships, the organization aims to solidify its position in the global market while diversifying its portfolio across console, mobile, and digital platforms.