Financial Results for the Third Quarter of the Fiscal Year Ending March 2023

Koei Tecmo reported a significant year-over-year decline for Q3 FY2023, with net sales falling 10.6% to 49.4 billion yen and net profit dropping 52.4% to 13.5 billion yen.

Digital sales remain the core of the entertainment segment, accounting for 78.8% of total revenue despite a decline in physical packaged software sales.

Total unit sales increased by 4.9% to 5.98 million units, demonstrating that strong digital download volume offset the overall revenue downturn.

The company revised its full-year outlook, raising its operating profit target to 34 billion yen while lowering net profit expectations due to non-operating losses from derivative valuations.

Growth strategy for the remainder of the fiscal year centers on the release of major titles including Wild Hearts, Wo Long: Fallen Dynasty, and Atelier Ryza 3, alongside the mobile launch of Nobunaga’s Ambition: Ha-do.

Koei Tecmo expanded its workforce by 15.7% to 2,400 employees to support long-term development capacity.

Revenue remains geographically balanced, with 51.6% generated in Japan and 48.4% coming from overseas markets, primarily in Asia and North America.