FinancialKoei Tecmo
Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2022
1 Jan 20236 pages~7 min full read
Koei Tecmo experienced a significant decline in profitability for the nine months ending December 31, 2022, with ordinary profit falling 56.5% and profit attributable to owners of the parent dropping 52.4%.
Net sales for the nine-month period decreased by 10.6% year-on-year to 49,439 million yen, while operating profit declined by 15.2% to 22,994 million yen.
Financial performance was heavily impacted by non-operating expenses, including a 12,626 million yen loss on the valuation of derivatives and a 7,373 million yen loss on the redemption of securities.
Earnings per share for the nine-month period were halved, falling from 85.10 yen in the previous year to 42.78 yen.
Total assets contracted from 219,803 million yen in March 2022 to 189,092 million yen by December 31, 2022, primarily due to a reduction in cash, deposits, and short-term securities.
The company projects a full-year net sales recovery of 5.8% to 77,000 million yen for the fiscal year ending March 31, 2023, though full-year net income is still expected to be 33.5% lower than the prior year.
Koei Tecmo Holdings Co., Ltd. reported its consolidated financial results for the nine-month period ending December 31, 2022, revealing a significant year-on-year decline across major profitability metrics. Prepared under Japanese GAAP, the data reflects the performance of the Japanese game developer and publisher during a period of contraction compared to the previous fiscal year.
Net sales for the nine-month period reached 49,439 million yen, representing a 10.6% decrease from the 55,327 million yen recorded in the same period in 2021. Operating profit fell by 15.2% to 22,994 million yen. The most substantial declines were observed in ordinary profit and profit attributable to owners of the parent, which plummeted by 56.5% and 52.4% respectively. Earnings per share consequently dropped from 85.10 yen to 42.78 yen. These results were heavily impacted by non-operating expenses, specifically a 12,626 million yen loss on the valuation of derivatives and a 7,373 million yen loss on the redemption of securities.
The company’s financial position also saw a reduction in total assets, which decreased from 219,803 million yen at the end of March 2022 to 189,092 million yen by December 31, 2022. This was driven largely by a sharp decline in current assets, including cash, deposits, and short-term securities. Despite the downturn in nine-month performance, the full-year forecast for the period ending March 31, 2023, anticipates a slight recovery in top-line growth, with net sales projected to reach 77,000 million yen, a 5.8% increase over the previous full fiscal year. However, full-year net income is still expected to remain 33.5% lower than the prior year's results.
