FinancialKoei Tecmo
Financial Results for the First Half of the Fiscal Year Ending March 2022
25 Oct 202230 pages~11 min full read
Koei Tecmo reported record H1 fiscal 2022 results with sales rising 60.8% to ¥37.2 billion and operating profit surging 94.4% to ¥16.4 billion.
See it on page 11Growth was primarily driven by the Entertainment segment, where smartphone and social game revenue nearly doubled, led by titles like Romance of the Three Kingdoms Ha-do and Three Kingdoms Tactics.
See it on page 21Despite strong H1 performance, the company maintained a conservative full-year sales forecast of ¥65 billion, citing potential stabilization of pandemic-driven demand and global economic volatility.
See it on page 10The company is targeting ¥90 billion in annual sales by fiscal year 2023, supported by a development pipeline utilizing the proprietary Katana Engine for multi-platform deployment.
See it on page 17While console unit sales are projected to decline by 7% to 9.4 million units, mobile downloads are expected to increase by 14.5% to over 113 million.
See it on page 29Long-term strategy focuses on establishing new global franchises capable of selling five million units and launching smartphone titles targeting ¥2 billion in monthly revenue.
See it on page 18Koei 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.
