FinancialKoei Tecmo
Financial Results for the Third Quarter: Fiscal Year Ending March 2024
15 pages~14 min full read
Koei Tecmo’s total sales for the first nine months of fiscal 2023 rose 23.7% year-over-year to ¥61,136 million, driven primarily by strong performance in mobile and online gaming.
See it on page 3Operating profit declined 11.7% to ¥20,316 million, as increased investment in advertising (up 92.8%), subcontracting (up 78.8%), and employment costs outweighed revenue gains.
See it on page 5Net profit surged 80.2% to ¥24,283 million and ordinary profit grew 100.4% to ¥33,825 million, bolstered significantly by gains from marketable securities and non-operating items.
See it on page 3The entertainment segment’s digital sales ratio reached 84.2%, with mobile and online channels now accounting for 47.1% of segment revenue while console package sales fell 10.3%.
See it on page 8Overseas markets accounted for 38.9% of total sales, with the United States and Europe experiencing a decline in unit volumes despite stable digital revenue.
See it on page 7The company maintains its FY2024 operating profit target of ¥37,500 million, relying on the March release of 'Rise of the Ronin' and continued mobile market expansion.
See it on page 11The quarterly financial release outlines KOEI TECMO HOLDINGS CO., LTD.’s performance for the first nine months of fiscal 2023, ending March 2024. Total sales rose 23.7 % YoY to ¥61,136 million, driven primarily by new mobile titles that boosted online and mobile game revenue. Operating profit fell 11.7 % to ¥20,316 million due to higher platform, royalty and advertising costs associated with the expanded title portfolio. Ordinary profit increased 100.4 % to ¥33,825 million and net profit grew 80.2 % to ¥24,283 million, largely supported by gains from marketable securities and other non‑operating items.
Geographically, Japan contributed 61.1 % of sales while overseas sales accounted for 38.9 %, with the United States and Europe showing modest declines in unit volumes but maintaining strong digital sales. The entertainment segment recorded a 24 % YoY sales increase, with mobile and online channels contributing 47.1 % of segment revenue; console package sales declined by 10.3 %. Digital sales ratio for the entertainment sector rose to 84.2 %, reflecting a shift toward downloadable content and mobile downloads.
Cost analysis revealed a 12.9 % rise in employment costs, a 78.8 % jump in subcontracting expenses, and a 92.8 % increase in advertising spend, all linked to new title launches. The company maintains its FY2024 operating profit target of ¥37,500 million, citing anticipated revenue from the March release of “Rise of the Ronin” and continued expansion in mobile markets.
