FinancialKoei Tecmo
Consolidated Financial Results for the Year Ended March 31, 2024
1 Apr 202410 pages~17 min full read
Koei Tecmo Holdings reported a 7.9% increase in net sales to ¥84.6 billion for the fiscal year ended March 31, 2024, though operating profit fell 27.2% to ¥28.5 billion due to rising selling and administrative expenses.
Profit attributable to owners rose 9.2% to ¥33.8 billion, while ordinary profit grew 14.6% to ¥45.7 billion, bolstered by significant non-operating gains from investment securities and derivative valuations.
For the fiscal year ending March 31, 2025, the company projects a 6.4% increase in net sales but anticipates an 11.2% decline in profit attributable to owners.
The company maintained a strong financial position with total assets reaching ¥245.8 billion and net assets totaling ¥175.6 billion by the end of the fiscal year.
Operating cash flow remained robust at ¥36.6 billion, which supported a ¥24.9 billion investment in securities and the distribution of ¥15.7 billion in dividends.
The company’s future strategy focuses on leveraging its strong balance sheet and non-operating income to offset potential volatility in core gaming profitability.
Koei Tecmo Holdings achieved a 7.9% increase in net sales to ¥84.6 billion for the fiscal year ended March 31, 2024, reflecting a period of steady top-line growth. While profit attributable to owners rose 9.2% to ¥33.8 billion, the company experienced a notable 27.2% decline in operating profit, which fell to ¥28.5 billion. This contraction in operating margins was primarily driven by rising selling and administrative expenses. However, ordinary profit remained resilient, growing 14.6% to ¥45.7 billion due to substantial non-operating gains derived from investment securities and derivative valuations.
The financial position of the organization strengthened considerably throughout the year, with total assets expanding to ¥245.8 billion and net assets reaching ¥175.6 billion. Cash flow from operating activities remained robust at ¥36.6 billion, supported by efficient trade receivable collections and higher pre-tax profits. These inflows effectively balanced a ¥24.9 billion net outflow in investing activities, largely attributed to the strategic acquisition of investment securities. Despite distributing ¥15.7 billion in dividends, the company maintained a stable liquidity position with ¥10.5 billion in cash and cash equivalents at the close of the period.
Looking toward the fiscal year ending March 31, 2025, the outlook suggests continued revenue expansion alongside tightening profitability. Net sales are projected to grow by 6.4%, yet profit attributable to owners is expected to decline by 11.2%. This forecast indicates a transitionary phase where increased market activity and sales volume may be offset by shifting investment returns or continued pressure on operating costs. The overall trajectory emphasizes a shift toward leveraging a strong balance sheet and non-operating income to navigate fluctuations in core gaming profitability.
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.