FinancialKoei Tecmo
Financial Results for the Fiscal Year Ending March 2022
1 Apr 202235 pages~16 min full read
Koei Tecmo achieved record financial results for the fiscal year ending March 2022, with sales rising 20.5% to ¥72.7 billion and operating profit surging 41.5% to ¥34.5 billion.
See it on page 10The Entertainment segment drove growth through a 48.2% increase in mobile game revenue and a nearly 30% rise in cumulative mobile downloads, bolstered by titles like Three Kingdoms Tactics.
See it on page 7The company met its three-year medium-term profit targets in a single year, supported by consistent repeat sales of established console franchises such as Nioh 2.
See it on page 16Operating profits are projected to decline in the upcoming fiscal year due to a strategic reinvestment strategy, including a 23% increase in basic employee salaries and the establishment of a new Shanghai office.
See it on page 10Future growth targets include developing a new intellectual property capable of selling five million units and creating mobile titles that generate ¥2 billion in monthly revenue.
See it on page 20The company is shifting its geographic focus toward North America and Europe, with a target of 15.6% growth in global console unit sales to reach 9.4 million units.
See it on page 13A new IP Business Division has been established to manage global licensing and improve market penetration, particularly within China.
See it on page 28Koei Tecmo achieved record-breaking financial performance during the fiscal year ending March 2022, characterized by a 20.5% increase in sales to ¥72.7 billion and a 41.5% surge in operating profit to ¥34.5 billion. This growth was primarily catalyzed by the Entertainment segment, where smartphone and social game revenues rose by 48.2% and cumulative mobile downloads increased by nearly 30%. High-performing titles such as Three Kingdoms Tactics and steady repeat sales of established console franchises like Nioh 2 allowed the company to meet its three-year medium-term profit targets in only one year.
The strategic focus for the upcoming fiscal year involves a transition toward long-term major title development under a new management plan. While sales are projected to rise further to ¥77 billion, operating profits are expected to experience a temporary decline as the company reinvests in its workforce and infrastructure. This includes a significant 23% increase in basic employee salaries and the establishment of a new IP Business Division and a Shanghai office to better penetrate the Chinese market and manage global licensing.
Future expansion strategies prioritize the creation of a new intellectual property capable of selling five million units and the development of mobile titles that generate ¥2 billion in monthly revenue. Geographically, the company is shifting its emphasis toward North America and Europe, forecasting a 15.6% growth in console unit sales to reach 9.4 million units globally. By balancing the steady revenue of licensed mobile content with the ambitious development of large-scale internal IPs, the organization aims to solidify its position as a global leader in the entertainment industry.
