FinancialKoei Tecmo
Financial Results for the Third Quarter of the Fiscal Year Ending March 2022
13 pages~6 min full read
Total sales grew 25.9% to ¥55.33 billion and operating profit rose 40.1% to ¥27.13 billion, driven by record-high performance in the online and mobile sectors.
See it on page 5Mobile and social game revenue surged 67.9% to ¥25.74 billion, fueled by the success of 'Romance of the Three Kingdoms Ha-do' and 'Three Kingdoms Tactics'.
See it on page 2The company revised its full-year operating profit forecast upward from ¥24.5 billion to ¥31.5 billion and increased its dividend projection from 81 to 98 yen per share.
See it on page 11Digital download sales increased by 35.2%, contributing to a 30.1% decline in physical console unit sales as the company pivots toward digital distribution.
See it on page 8Overseas markets accounted for more than half of the 26.3% sales growth within the entertainment segment.
See it on page 6Advertising expenditure rose by 63.3% to support a 57% year-over-year increase in cumulative downloads across online and mobile platforms.
See it on page 8Operating costs increased alongside a 3.6% growth in headcount, which reached 2,075 employees by the end of the third quarter.
See it on page 10The quarterly report for the third quarter of fiscal 2022 highlights a record‑high performance driven primarily by strong sales in the online and mobile sectors, supported by the in‑house title “Romance of the Three Kingdoms Ha‑do” and the IP‑licensing title “Three Kingdoms Tactics.” Cumulative downloads in these sectors rose 57 % year‑over‑year, contributing to a 25.9 % increase in total sales from ¥43.95 billion to ¥55.33 billion, and a 40.1 % rise in operating profit to ¥27.13 billion. The entertainment segment alone grew 26.3 % in sales, with overseas markets accounting for over half of the increase.
Console performance remained solid, with new releases such as “Blue Reflection: Second Light” and “Dynasty Warriors 9 Empires” achieving strong launch sales, while the overall console unit sales declined by 30.1 % compared to the prior year due to a shift toward digital and mobile offerings. Digital download sales surged 35.2 %, and mobile smartphone/social game revenue grew 67.9 % to ¥25.74 billion, reflecting a strategic pivot toward digital distribution.
Operating costs rose 13.4 % in cost of goods sold and 11.9 % in selling‑general‑administrative expenses, partially offset by a 63.3 % increase in advertising spend that supported the rapid download growth. Headcount increased by 3.6 % to 2,075 employees.
The company revised its full‑year earnings estimate upward, projecting operating profit of ¥31.5 billion versus the prior plan of ¥24.5 billion, and raised its dividend forecast from 81 to 98 yen per share. The mid‑term three‑year plan is slated for revision in April, with the first year already achieving its profit target.
