FinancialKoei Tecmo
Financial Results for the First Quarter: Fiscal Year Ending March 2025
22 pages~15 min full read
Consolidated sales fell to ¥17.6 billion, a 3.8% year-over-year decline, while operating profit dropped 23.8% to ¥1.78 billion due to increased mobile portfolio costs and reduced partner-funded development.
See it on page 2Net profit rose 29.2% to ¥13.64 billion and ordinary profit increased 27.3% to ¥4.02 billion, bolstered by non-operating income despite the decline in core operating performance.
See it on page 2The entertainment division, which houses console and mobile operations, saw a 3.1% sales decline, driven by a 7.4% drop in physical console units and a 5.9 percentage point decrease in digital downloads.
See it on page 6Regional performance was mixed, with Japan sales falling 6.9% and Asia sales dropping 11.3%, while North America grew 5.3% and Europe saw a 101.7% increase, albeit from a small volume base.
See it on page 18The company maintains its full-year guidance of ¥90 billion in sales and ¥30 billion in operating profit, focusing on repeat console titles and steady mobile revenue to stabilize performance.
See it on page 16Real-estate segment profits increased despite lower sales, as the company benefited from reduced repair costs following property disposals.
See it on page 5Financial results for the first quarter of fiscal year ending March 2025 show a modest decline in consolidated sales to ¥17.6 billion, down 3.8 % YoY and 24.9 % QoQ, driven by weaker console sales after a strong launch in the prior quarter and declining online/mobile revenue from titles introduced in 2023. Operating profit fell ¥1.78 billion, a 23.8 % YoY drop and 30 % QoQ decline, largely due to higher variable costs from an expanded mobile portfolio and reduced partner‑covered development expenses. Ordinary profit rose ¥4.02 billion (27.3 % YoY) and net profit increased to ¥13.64 billion (29.2 % YoY), supported by higher non‑operating income amid a volatile financial environment.
Segment analysis indicates the entertainment division—comprising console and mobile businesses—experienced a 3.1 % sales decline, with physical console units falling 7.4 % and digital downloads dropping 5.9 pp. The amusement segment saw a modest sales drop, while real‑estate sales decreased due to property disposals but profit rose from lower repair costs. Regional performance shows Japan sales down 6.9 %, overseas up 0.5 %, North America up 5.3 %, Europe up 101.7 % (though still small in volume), and Asia down 11.3 %.
Methodologically, the report aggregates quarterly data from all operating segments, with expense breakdowns by employment, outsourcing, and advertising costs. No change to FY 2024 guidance is announced; the company maintains a conservative plan of ¥90 billion sales and ¥30 billion operating profit for the full year, with a focus on repeat console titles, steady online/mobile revenue, and incremental royalty income.
