FinancialKoei Tecmo
Summary of Consolidated Financial Results for the Three Months Ended June 30, 2022
1 Jul 20226 pages~7 min full read
Koei Tecmo’s net profit attributable to owners dropped 49.6% to 6.75 billion yen for the quarter ending June 30, 2022, primarily due to 9.54 billion yen in non-operating expenses.
See it on page 5Non-operating losses were driven by a 5.68 billion yen valuation loss on derivatives and a 2.34 billion yen loss on the redemption of securities.
See it on page 5Operating profit increased by 19.9% to 11.66 billion yen, fueled by a significant reduction in the cost of sales from 7.11 billion yen to 3.37 billion yen.
See it on page 1Net sales for the first quarter fell 9.1% year-over-year to 18.65 billion yen.
See it on page 1The company recorded a comprehensive loss of 185 million yen for the quarter, largely resulting from a 7.80 billion yen negative swing in the valuation of available-for-sale securities.
See it on page 5Full-year forecasts for the period ending March 31, 2023, project a 5.8% increase in net sales to 77 billion yen, but anticipate declines in operating, ordinary, and net profit.
See it on page 1Koei Tecmo maintains a stable financial position with total assets of 203.10 billion yen and an equity ratio of 59.4%.
See it on page 4Koei Tecmo Holdings reported consolidated financial results for the first quarter of the fiscal year ending March 31, 2023, covering the three-month period from April 1, 2022, to June 30, 2022. The data reveals a complex fiscal performance characterized by rising operational efficiency despite declining top-line revenue and significant non-operating headwinds. Net sales for the quarter reached 18.65 billion yen, representing a 9.1% decrease compared to the same period in the previous year. Conversely, operating profit grew by 19.9% to 11.66 billion yen, driven by a substantial reduction in the cost of sales, which fell from 7.11 billion yen to 3.37 billion yen year-over-year.
The bottom-line results were heavily impacted by non-operating factors. Ordinary profit fell by 50.6% to 9.09 billion yen, and profit attributable to owners of the parent dropped by 49.6% to 6.75 billion yen. This decline was largely attributed to a sharp increase in non-operating expenses, which rose from 1.25 billion yen to 9.54 billion yen. Key contributors to these expenses included a 5.68 billion yen loss on the valuation of derivatives and a 2.34 billion yen loss on the redemption of securities. Furthermore, the company recorded a comprehensive loss of 185 million yen for the quarter, primarily due to a 7.80 billion yen negative swing in the valuation difference on available-for-sale securities.
Looking ahead, the full-year forecast for the period ending March 31, 2023, anticipates net sales of 77 billion yen, a 5.8% increase over the prior year. However, profitability is expected to contract across the board, with projected declines in operating profit (5.9%), ordinary profit (12.7%), and profit attributable to owners (10.9%). The company’s financial position remains stable with total assets of 203.10 billion yen and an equity ratio of 59.4%, though net assets per share decreased from 874.33 yen to 766.20 yen during the quarter.
This financial report details the consolidated results for Koei Tecmo Holdings Co., Ltd. for the first quarter of the fiscal year ending March 31, 2025, covering the period from April 1 to June 30, 2024. The primary purpose of the document is to provide shareholders and the public with an update on the company’s financial health and progress toward its Third Medium-Term Management Plan, which focuses on the management policy of creating and developing global intellectual property. Financial performance for the quarter was mixed. Net sales reached 17.6 billion yen, a 3.8% decrease year-on-year, while operating profit fell 23.8% to 5.7 billion yen. This decline was attributed to a lack of new mobile title launches compared to the previous year and increased costs associated with in-house mobile operations. Conversely, ordinary profit rose 27.3% to 18.7 billion yen, and profit attributable to owners of the parent increased 29.2% to 13.6 billion yen, both reaching record highs for a first quarter. These gains were significantly bolstered by non-operating income, including 5.8 billion yen from the valuation of derivatives and 4.9 billion yen in interest income. The entertainment segment remains the company's core driver, contributing 16.5 billion yen in sales. Key activities included repeat sales of Rise of the Ronin and the continued performance of mobile titles like Nobunaga’s Ambition: Hadou and the licensed Three Kingdoms Tactics, which surpassed 100 million global downloads. Looking ahead, the company is focusing on its "AAA Studio" to ensure a continuous pipeline of large-scale titles, such as the upcoming Dynasty Warriors: Origins. For the full fiscal year, the company forecasts net sales of 90 billion yen and a profit of 30 billion yen, maintaining a neutral but growth-oriented outlook despite short-term fluctuations in operating income.
