Total sales for the first half of FY2022 grew 60.8% to ¥37.2 billion, while operating profit nearly doubled, rising 94.4% to ¥16.42 billion.

According to "Financial Results: First Half of the Fiscal Year Ending March 2022": Total sales for the first half of FY2022 grew 60.8% to ¥37.2 billion, while operating profit nearly doubled, rising 94.4% to ¥16.42 billion.

Digital revenue is the primary growth driver, highlighted by a 96% surge in mobile and online revenue to ¥17.25 billion and a 58.9% increase in worldwide download sales.

According to "Financial Results: First Half of the Fiscal Year Ending March 2022": Digital revenue is the primary growth driver, highlighted by a 96% surge in mobile and online revenue to ¥17.25 billion and a 58.9% increase in worldwide download sales.

Overseas operations now account for 50.2% of total sales, with the Asian market specifically delivering a 60.6% increase in operating profit.

According to "Financial Results: First Half of the Fiscal Year Ending March 2022": Overseas operations now account for 50.2% of total sales, with the Asian market specifically delivering a 60.6% increase in operating profit.

Console software performance remains strong with 3,650,000 units sold, representing a 19.7% increase over the previous period.

According to "Financial Results: First Half of the Fiscal Year Ending March 2022": Console software performance remains strong with 3,650,000 units sold, representing a 19.7% increase over the previous period.

Operating expenses rose as the company increased investment in digital content and marketing, with cost of goods sold up 17.7% and SG&A expenses up 15.4%.

According to "Financial Results: First Half of the Fiscal Year Ending March 2022": Operating expenses rose as the company increased investment in digital content and marketing, with cost of goods sold up 17.7% and SG&A expenses up 15.4%.

Management projects full-year sales of ¥65 billion and is targeting an operating profit of ¥30 billion by FY2023.

According to "Financial Results: First Half of the Fiscal Year Ending March 2022": Management projects full-year sales of ¥65 billion and is targeting an operating profit of ¥30 billion by FY2023.

Future growth strategy focuses on a mix of 5-million-copy console titles, annual 2-million-copy releases, mobile games generating ¥2 billion monthly, and broader IP licensing across animation and merchandise.

According to "Financial Results: First Half of the Fiscal Year Ending March 2022": Future growth strategy focuses on a mix of 5-million-copy console titles, annual 2-million-copy releases, mobile games generating ¥2 billion monthly, and broader IP licensing across animation and merchandise.

Financial

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

Published by Koei Tecmo

Summary

The first‑half financial results for the fiscal year ending March 2022 demonstrate a 60.8 % increase in total sales, rising from ¥23.1 billion to ¥37.2 billion, driven largely by a 62.5 % rise in entertainment segment sales (¥21.7 billion to ¥35.2 billion). Operating profit doubled from ¥8.45 billion to ¥16.42 billion, a 94.4 % increase, while net profit grew by 53.2 % to ¥18.14 billion. The company’s overseas operations contributed 50.2 % of first‑half sales, with North America and Europe showing modest growth, whereas Asia maintained a 31.6 % share of sales but experienced a 60.6 % rise in operating profit. Digital distribution expanded markedly: console units sold increased by 19.7 % to 3,650 thousand copies, with a 13.2 % rise in overseas units; download sales grew by 58.9 % to 103,300 thousand copies worldwide, largely from mobile and online platforms. Revenue mix shifted toward digital: package downloads grew 48 %, DLC sales increased 8.7 %, and mobile/online revenue surged 96 % to ¥17.25 billion. Headcount rose by 3.1 % to 2,081 employees; cost of goods sold and selling‑general‑administrative expenses increased by 17.7 % and 15.4 %, respectively, reflecting higher investment in digital content and marketing. For the full year, management projects sales of ¥65 billion (a 7.7 % increase) and operating profit of ¥24.5 billion, maintaining the FY2023 target of ¥30 billion operating profit. The strategy emphasizes launching 5‑million‑copy console titles, annual releases of 2‑million‑copy titles, and mobile games with monthly sales of ¥2 billion. The company also plans to expand IP licensing, globalize existing franchises such as Atelier and Warriors, and pursue new IPs across animation, comics, and merchandise.

Key insights

Total sales for the first half of FY2022 grew 60.8% to ¥37.2 billion, while operating profit nearly doubled, rising 94.4% to ¥16.42 billion.
Digital revenue is the primary growth driver, highlighted by a 96% surge in mobile and online revenue to ¥17.25 billion and a 58.9% increase in worldwide download sales.
Overseas operations now account for 50.2% of total sales, with the Asian market specifically delivering a 60.6% increase in operating profit.
Console software performance remains strong with 3,650,000 units sold, representing a 19.7% increase over the previous period.
Operating expenses rose as the company increased investment in digital content and marketing, with cost of goods sold up 17.7% and SG&A expenses up 15.4%.
Management projects full-year sales of ¥65 billion and is targeting an operating profit of ¥30 billion by FY2023.
Future growth strategy focuses on a mix of 5-million-copy console titles, annual 2-million-copy releases, mobile games generating ¥2 billion monthly, and broader IP licensing across animation and merchandise.

From the report

(Million Yen) FY20 FY21 Vs Previous Year 1st Half 1st Half Amount Component Amount Component Amount Percent Ratio Ratio Change 1.4.1 1.4.07 Sales 23, 141 100.0% 37,220 100.0% 14,079 60.8% Operating Profit 8,447 36.5% 16,423 44.1% 7,976 94.4% Ordinary Profit 15,289 66.1% 25,064 67.3% 9,775 63.9% Net Profit 11,845 51.2% 18,142 48.7% 6,297 53.2%

IP Licensing-out Nroh AtelierRyza2 :0 :0$ SENGOKU MUSOU 1=3 91#07191 A no ETE EONTTON PlayStation® 4/Nintendo Switch™/ PlayStation®5/PlayStation®4 Xbox One/Steam® Steam®/Epic Games Store Nioh 2 SAMURAI WARRIORS 5 Nioh 2 - The Complete Edition 410K Copies 2 million copies Worldwide Worldwide Over 6 million copies for the series! PlayStation®5/PlayStation®4 Nintendo Switch™M iOS/Android iOS/Android /Steam Romance of the Three Three Kingdoms Atelier Ryza 2: Lost Legends Kingdoms Ha-do[1] Tactics & the Secret Fairy Now Available Over 1 million copies for the Now Available 3 series! Japan/Taiwan/Hong Kong /Macau ["]English Names are tentative

(Million Yen) FY20 FY21 Change 1st Half 1st Half Entertainment Sales 21,683 35,245 13,562 Operating Profit 8,352 16,115 7,763 Amusement Sales 1,185 1,449 264 Operating Profit 34 191 157 Real Estate Sales 361 511 150 Operating Profit 65 71 6 Others Sales 90 184 94 Operating Profit 5 45 50 Corporate & Elimination Sales 179 170 9 Operating Profit Total Sales 23,141 37,220 14,079 Operating Profit 8,447 16,423 7,976 4

Consolidated Results (Million Yen) FY20 FY21 Vs Previous Year 1st Half 1st Half Amo unt Component Amount Component Amount Component 11,532 Ratio 18,798 Ratio 7,266 Ratio Japan 49.8% 50.5% 63.0% Overseas 11,609 50.2% 18,422 49.5% 6,813 58.7% N. America 2,937 12.7% 4,944 13.3% 2,007 68.4% Europe 1,357 5.9% 1,728 4.6% 371 27.3% Asia 7,315 31.6% 11,750 31.6% 4,435 60.6% Total 23,141 100.0% 37,220 100.0% 14,079 60.8% Breakdown: Entertainment Segment (Million Yen) FY20 FY21 Vs Previous Year 1 st Half 1st Half Amount Component Amount Component Amount Component Ratio 16,894 Ratio Ratio Japan 10,145 46.8% 47.9% 6,749 66.5% Overseas 11,539 53.2% 18,351 52.1% 6,812 59.0% Total 21,683 100.0% 35,245 100.0% 13,562 62.5% 5

Console: units sold (1000 Copies) FY20 FY21 Vs Previous Year 1st Half 1st Half Units Component Units Component Units Component Ratio 1,330 Ratio Ratio Japan 1,000 32.8% 36.4% 330 33.0% Overseas 2,050 67.2% 2,320 63.6% 270 13.2% N. America 780 25.6% 1,050 28.8% 270 34.6% Europe 700 23.0% 500 13.7% 200 -28.6% Asia 570 18.7% 770 21.1% 200 35.1% Total 3,050 100.0% 3,650 100.0% 600 19.7% DL Units 1,500 2,300 800 53.3% DL Ratio 49.2% 63.0% +13.8pt Online/Mobile: Cumulative Number of DL (1000 DLs) FY20 FY21 Vs Previous Year 1st Half 1st Half DL Component DL Component DL Component Ratio Ratio Ratio Japan 30,000 46.2% 30,400 29.4% 400 1.3% Overseas 35,000 53.8% 72,900 70.6% 37,900 108.3% Total 65,000 100.0% 103,300 100.0% 38,300 58.9% [1]Cumulative Number of DL: 6 the cumulative total number of DL on global basis composed of all social and smartphone games operated by KT Group (except for MMORPG) and IP licensing-out titles in service as of the end of the fiscal year

Pages: 30
Words: 2,066
Format: PDF
Type: Financial

Topics

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

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

Summary

Key insights

From the report

Topics

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