FinancialKoei Tecmo
Financial Results for the First Half of the Fiscal Year Ending March 2023
31 Oct 202234 pages~13 min full read
Koei Tecmo aims to reach 100 billion yen in sales and 40 billion yen in operating profit by the end of FY2024 through a medium-term management plan.
Operating profit grew 11.6% to 18.32 billion yen in the first half of the fiscal year ending March 2023, despite a 6.6% decline in net sales to 34.76 billion yen.
The company is prioritizing global expansion, with overseas markets projected to account for over 71% of total unit sales for upcoming titles like Wild Hearts and Wo Long: Fallen Dynasty.
Software unit sales increased by 28.2% to 4.68 million units during the first half of the fiscal year, driven by the performance of Fire Emblem Warriors: Three Hopes.
The long-term growth strategy centers on developing a new global intellectual property capable of selling five million units, supported by an annual pipeline of titles targeting two million units each.
Operational stability is supported by an industry-leading 4.2% employee turnover rate and the use of the proprietary Katana Engine to streamline development across console, mobile, and licensing segments.
The company is targeting mobile titles that generate monthly revenues between one and two billion yen to diversify its revenue cycle.
Koei Tecmo’s financial performance for the first half of the fiscal year ending March 2023 reflects a strategic transition toward large-scale global expansion and long-term intellectual property development. While net sales experienced a slight year-on-year decline of 6.6% to 34.76 billion yen, operating profit grew by 11.6% to 18.32 billion yen. This growth was supported by a 28.2% increase in software unit sales, totaling 4.68 million units, led by the success of titles such as Fire Emblem Warriors: Three Hopes. Despite a drop in net profit caused by lower non-operating income, the company remains on track to meet its full-year sales forecast of 77 billion yen.
The current fiscal year serves as the foundation for a medium-term management plan spanning through FY2024, which aims to achieve 100 billion yen in sales and 40 billion yen in operating profit. Central to this strategy is the pursuit of a new global intellectual property capable of selling five million units, supported by a pipeline of annual releases targeting two million units each. Upcoming major titles like Wild Hearts and Wo Long: Fallen Dynasty are critical to this international push, as overseas markets are projected to account for over 71% of total unit sales.
Operational stability and technical efficiency underpin these ambitious financial targets. The company leverages its proprietary Katana Engine to streamline development across a multi-layered revenue cycle that includes console software, mobile gaming, and IP licensing. With a focus on high-growth segments, the company seeks to establish mobile titles generating monthly revenues between one and two billion yen. Furthermore, a twelve-year streak of profitability and an industry-leading low employee turnover rate of 4.2% provide the organizational continuity necessary to execute these high-cost, high-reward global projects.
