Consolidated Financial Results for the Three Months Ended June 30, 2024

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.