Financial Results for the First Quarter of Fiscal Year Ending March 2025

The quarterly financial release presents KOEI TECMO HOLDINGS’ first‑quarter fiscal 2025 results, showing a modest decline in consolidated sales to ¥17.6 billion from ¥18.3 billion, a 3.8 % year‑over‑year drop driven mainly by reduced console and online/mobile sales. Operating profit fell ¥1.8 billion to ¥5.7 billion, a 23.8 % decline, while ordinary and net profits rose to ¥18.7 billion and ¥13.6 billion, respectively, reflecting higher operating leverage and lower tax rates.

Segment analysis indicates the entertainment division—encompassing console, download, DLC, and mobile titles—experienced a 3.1 % sales decline, with physical console units down 7.4 % and digital download units falling 5.9 percentage points. The amusement segment’s consignment sales dropped sharply, whereas real‑estate sales saw a modest increase in operating profit due to reduced repair costs. Regional performance shows Japan’s contribution falling 6.9 %, while overseas sales grew marginally (0.5 %) and Europe experienced a 101.7 % jump, driven by new title launches.

Cost structure shifts include a slight reduction in COGS and outsourcing expenses, offset by increased variable costs. Headcount rose 7.9 % to 2,736 employees, with employment and advertising costs trending upward. The company maintains its FY2024 guidance unchanged, targeting ¥90 billion in sales and a 33.3 % operating profit margin, supported by planned releases of major titles such as “Romance of the Three Kingdoms 8” and “Fairy Tail 2.” The TSE Prime listing compliance remains close to the 35 % tradable‑share threshold, with planned treasury conversion actions.