Financial Results for the First Half of the Fiscal Year Ending March 2023

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.