FinancialKoei Tecmo
Financial Results for the First Quarter of the Fiscal Year Ending March 2024
31 Jul 202313 pages~5 min full read
Koei Tecmo’s online and mobile sector achieved record quarterly sales of 10.9 billion yen, a 31.7% year-over-year increase driven by the launch of Dragon Quest Champions.
Total sales for the quarter reached 18.3 billion yen, a 1.9% decrease year-over-year, while operating profit fell 35.6% to 7.5 billion yen due to rising employment and subcontracting costs.
Ordinary profit rose 61.6% to 14.7 billion yen, primarily bolstered by non-operating income generated from the sale of marketable securities.
Digital sales now represent 87.3% of total entertainment revenue, marking a significant increase from 74.4% in the previous year.
Console sector performance declined significantly, with sales dropping 35.3% and unit volume falling 52.1% due to a lack of major new releases.
Japan remains the company's primary market, growing 16.9% to account for 58.1% of total sales, while revenue declined across North America, Europe, and Asia.
The company maintains a full-year sales target of 95 billion yen, supported by upcoming titles such as Atelier Marie Remake, Nobunaga’s Ambition: Awakening, and Fate/Samurai Remnant.
Koei Tecmo Holdings reported financial results for the first quarter of the fiscal year ending March 2024, revealing a period of transition characterized by a shift toward mobile dominance and strategic investment. Total sales for the quarter reached 18.3 billion yen, a slight 1.9% decrease year-over-year. While operating profit fell by 35.6% to 7.5 billion yen due to higher employment and subcontracting costs, ordinary profit rose significantly by 61.6% to 14.7 billion yen, bolstered by non-operating income from the sale of marketable securities.
The entertainment segment remains the primary revenue driver, though its internal composition shifted during the period. The console sector experienced a 35.3% decline in sales and a 52.1% drop in unit volume, largely because the quarter lacked new major releases and relied on repeat sales of existing titles. Conversely, the online and mobile sector achieved record quarterly sales of 10.9 billion yen, a 31.7% increase driven by the successful launch of Dragon Quest Champions and strong performance in smartphone and social gaming. Digital sales now account for 87.3% of total entertainment revenue, up from 74.4% in the previous year.
Geographically, Japan remains the strongest market, growing 16.9% to represent 58.1% of total sales. In contrast, overseas revenue declined across North America, Europe, and Asia. Looking ahead, the company maintains a positive full-year outlook with a sales target of 95 billion yen. Growth is expected to be driven by a robust pipeline of upcoming releases, including Atelier Marie Remake, Nobunaga’s Ambition: Awakening, and Fate/Samurai Remnant, alongside the continued expansion of the mobile portfolio with titles like Nobunaga’s Ambition: Shutsujin.
