FinancialKoei Tecmo
Financial Results for the Fiscal Year Ending March 2024
30 Apr 202439 pages~41 min full read
Koei Tecmo achieved record-high annual sales of 84.6 billion yen, fueled by a 40.6% surge in the mobile and online sectors.
Operating profit declined 27.2% to 28.5 billion yen as the company shifted from high-margin royalty partnerships toward cost-intensive in-house publishing.
The company established a dedicated AAA Studio to centralize management and improve quality control, following the successful launch of its first open-world title, Rise of the Ronin.
Net profit increased by 9.2% to record levels, supported by strong non-operating income and active financial management.
For the fiscal year ending March 2025, the company targets 30 billion yen in operating profit and 7.6 million unit sales through a balanced portfolio and the integration of generative AI.
The firm is scaling internal development capabilities by increasing its workforce, including the hiring of 158 new graduates and raising base pay.
Management is prioritizing a transition to the Tokyo Stock Exchange Prime Market by improving its tradable share ratio as part of its upcoming 4th Mid-Term Management Plan.
Koei Tecmo achieved record-high sales of 84.6 billion yen for the fiscal year ending March 2024, primarily driven by a 40.6% surge in the mobile and online sectors. While net profit rose by 9.2% due to record-level non-operating income and successful financial management, operating profit declined by 27.2% to 28.5 billion yen. This contraction reflects a strategic shift from high-margin royalty partnerships toward in-house publishing, which necessitated increased expenditures in advertising, outsourcing, and employment. The company expanded its workforce by hiring 158 new graduates and raising base pay, a trend set to continue as the firm scales its internal development capabilities.
The transition toward large-scale, global intellectual properties reached a milestone with the launch of Rise of the Ronin, the company’s first AAA open-world title. Although some console releases underperformed initial expectations, Rise of the Ronin surpassed the early sales pace of the Nioh series and received strong user feedback. To sustain this momentum, a dedicated AAA Studio has been established to develop major titles independently of traditional brand frameworks. This organizational change aims to professionalize AAA development management, ensuring stricter adherence to quality standards, delivery timelines, and budget constraints.
Looking toward the fiscal year ending March 2025, the strategy focuses on returning to an upward trend in operating profit through a balanced portfolio of console and mobile titles. Management is targeting 7.6 million unit sales and 30 billion yen in operating profit while integrating generative AI into production workflows to optimize costs. Furthermore, the company is prioritizing its transition to the Tokyo Stock Exchange Prime Market by improving its tradable share ratio. These financial and structural adjustments serve as the foundation for the upcoming 4th Mid-Term Management Plan, which seeks to establish the firm as a global leader in the gaming industry.
