Consolidated Financial Results for the Six Months Ended September 30, 2023

Koei Tecmo Holdings Co., Ltd. reported its consolidated financial results for the first half of the fiscal year ending March 31, 2024, covering the period from April 1, 2023, to September 30, 2023. The data reflects a period of significant growth in top-line revenue and net profitability, despite a contraction in operating profit. Net sales rose 14.3% year-over-year to ¥39.7 billion, while profit attributable to owners of the parent increased by 23.1% to ¥16.8 billion.

The divergence between operating and ordinary profit is a primary feature of this period. While operating profit fell 24.4% to ¥13.8 billion due to rising costs of sales and administrative expenses, ordinary profit surged 31.3% to ¥23.2 billion. This boost was driven by substantial non-operating income, specifically a ¥7.3 billion gain on the valuation of derivatives and ¥6.7 billion from the sale of investment securities. These financial activities offset significant non-operating expenses, including ¥8.6 billion in losses on the sale of investment securities.

Geographically focused on the Japanese market with a listing on the Tokyo Stock Exchange, the company maintains a strong financial position with total assets increasing to ¥234.1 billion. The capital adequacy ratio remains robust at 64.1%. Looking ahead, the full-year forecast remains unchanged, with expectations for net sales to reach ¥95 billion, representing a 21.1% annual increase. The company anticipates maintaining a stable dividend of ¥50 per share, reflecting confidence in its long-term financial stability and the continued performance of its core gaming and investment segments.