FinancialKoei Tecmo
Consolidated Financial Results for the Three Months Ended June 30, 2023
1 Aug 20236 pages~9 min full read
Koei Tecmo reported a 35.6% decline in operating profit to ¥7.5 billion for Q1 ending June 30, 2023, driven by a near-doubling of the cost of sales to ¥6.3 billion.
See it on page 2Despite operational headwinds, net profit attributable to owners of the parent rose 56.3% to ¥10.6 billion, bolstered by ¥4.87 billion in gains from the sale of investment securities and ¥2.84 billion in derivative valuation gains.
See it on page 6Net sales for the quarter reached ¥18.3 billion, marking a 1.9% decrease compared to the same period in the previous fiscal year.
See it on page 5The company maintains its full-year forecast of ¥95 billion in net sales, representing a projected 21.1% increase over the prior year.
See it on page 2Total assets grew to ¥232.8 billion by the end of the quarter, supported by an increase in cash and deposits to ¥30.5 billion.
See it on page 1While the capital adequacy ratio decreased from 67.4% to 61.7%, net assets per share improved to ¥455.43.
See it on page 1This financial report details the consolidated results for Koei Tecmo Holdings Co., Ltd. for the first quarter of the fiscal year ending March 31, 2024, covering the period from April 1, 2023, to June 30, 2023. The findings reveal a complex fiscal performance characterized by a slight decline in top-line revenue alongside significant growth in bottom-line profitability, driven largely by non-operating activities.
Net sales for the quarter reached ¥18.3 billion, representing a 1.9% decrease compared to the same period in the previous year. Operating profit saw a more substantial decline of 35.6%, falling to ¥7.5 billion as the cost of sales nearly doubled from ¥3.3 billion to ¥6.3 billion. Despite these operational headwinds, ordinary profit surged by 61.6% to ¥14.7 billion, and profit attributable to owners of the parent rose by 56.3% to ¥10.6 billion. This discrepancy is explained by strong non-operating income, specifically a ¥4.87 billion gain on the sale of investment securities and a ¥2.84 billion gain on the valuation of derivatives.
The company’s financial position remains robust, with total assets increasing to ¥232.8 billion from ¥210.9 billion at the end of the previous fiscal year. This growth was supported by a significant rise in cash and deposits, which climbed to ¥30.5 billion. While the capital adequacy ratio dipped slightly from 67.4% to 61.7%, net assets per share increased to ¥455.43.
Looking ahead, the full-year forecast remains unchanged, with the company projecting net sales of ¥95 billion, a 21.1% increase over the prior year. While operating profit is expected to contract slightly by 4.2% for the full year, ordinary profit and net income are forecasted to remain stable. These results reflect a period of transition where investment activities and financial management have significantly bolstered the company's net earnings despite rising operational costs.
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.
