FinancialKoei Tecmo
Financial Results for the Third Quarter of the Fiscal Year Ending March 2024
29 Jan 202415 pages~16 min full read
Koei Tecmo reported a 23.7% year-over-year increase in net sales to 61,136 million yen for the first nine months of the fiscal year ending March 2024.
Ordinary profit doubled to 33,825 million yen, largely driven by non-operating income from the disposal of marketable securities, despite an 11.7% decline in operating profit to 20,316 million yen.
Mobile gaming achieved record-high sales, bolstered by the success of 'Atelier Resleriana' (over 3 million downloads) and first-anniversary events for 'Nobunaga’s Ambition: Hadou'.
Console unit sales fell to 5.07 million units globally, though digital sales reached a record high of 74.2% of total units sold.
The company acquired a 7.97% stake in Akatsuki Inc. as part of a new capital and business alliance to strengthen collaborative development.
Strategic focus for the final quarter includes the March 2024 global launch of the AAA action RPG 'Rise of the Ronin' and the expansion of mobile titles to international markets and Steam.
Domestic revenue remains dominant at 61.1% of total sales, while overseas markets accounted for the remaining 38.9%.
Koei Tecmo Holdings reported its financial results for the first nine months of the fiscal year ending March 2024, highlighting a period of significant revenue growth driven by the online and mobile sectors. Net sales reached 61,136 million yen, a 23.7% increase year-over-year. While operating profit saw an 11.7% decline to 20,316 million yen due to rising platform fees, advertising costs, and royalty expenses associated with new titles, ordinary profit doubled to 33,825 million yen. This surge in ordinary profit was primarily attributed to non-operating income, including gains from the disposal of marketable securities.
The entertainment segment remains the primary business driver, with mobile games achieving record-high sales. Key contributors included the first-anniversary events for Nobunaga’s Ambition: Hadou and the successful launch of Atelier Resleriana, which surpassed 3 million downloads. In contrast, the console sector saw a decline in unit sales compared to the previous year, totaling 5.07 million units globally. However, digital sales reached a record 74.2% of total units sold. Geographically, Japan accounted for 61.1% of total sales, reflecting the strong domestic performance of new mobile titles, while overseas markets represented 38.9% of revenue.
Strategic initiatives for the final quarter include the global launch of the AAA action RPG Rise of the Ronin in March 2024 and the expansion of mobile titles to international markets and Steam. The company also announced a capital and business alliance with Akatsuki Inc., acquiring a 7.97% stake to strengthen collaborative development. Despite fluctuations in operating costs and the global financial environment, the company maintained its full-year forecast, citing a robust pipeline of upcoming releases and stable performance across its amusement and real estate segments.
