Financial

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

Summary

Financial 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.

From the report

KT Level up your happiness Financial Results for the First Quarter Financial Results for the First Quarter of Fiscal Year Ending March 2025 July 29, 2024 KOEI TECMO HOLDINGS CO., LTD.

Highlight : Consolidated Results (Million Yen) FY23 Q1 Results FY24 Q1 Results Change Amount Component Amount Component Amount Percent Ratio Ratio Change Sales 18,297 - 17,607 - (690) -3.8% Operating Profit 7,506 41.0% 5,723 32.5% (1,783) -23.8% Ordinary Profit 14,687 80.3% 18,703 106.2% 4,016 27.3% Net Profit 10,552 57.7% 13,638 77.5% 3,086 29.2% ◆Major developments [Sales Console] Back-catalog sales including "Ronin of Rise" [Sales Online/Mobile] Mainly existing titles, no big events [Expenses] Increase in variable costs Decrease in development costs covered by partners No Change on Guidance ©KOEI TECMO GAMES CO., LTD. All Rights Reserved ・Consolidated Financial Results for the First Quarter are as shown above. ・In the console sector, there were no new titles, mainly back catalogs including “Rise of the Ronin” ・In the online and mobile sector, existing titles contributed. ・Costs increased overall due to an increase in variable costs resulting from an increase in the number of mobile titles published by the Company and a decrease in development costs covered by partners. ・Non-operating income and expenses increased due to the financial environment in the current quarter, resulting in the record-high ordinary profit and net profit for the 1st quarter. ・There is no change to the forecast at this time, taking into account both that operating profit is roughly within the range of expectations and uncertainties in the financial environment.

Highlight : Consolidated Results - QoQ/YoY Change （million Yen） FY24 1Q Results QoQ YoY Amount ratio Amount ratio Amount ratio Sales 17,607 - (5,841) -24.9% (690) -3.8% Operating Profit 5,723 32.5% (2,455) -30.0% (1,783) -23.8% ◆Quarter on Quarter Changes [Sales-Console]Decrease because 3 titles launched in the previous quarter [Sales-Online /Mobile] Decrease in sales of titles launched in 2023 [Expenses] Decrease due to expenses booked for titles launched in the previous quarter. ◆Year on Year Changes [Sales-Console] Decrease in repeat sales etc. [Sales-Online/Mobile] Decrease in existing titles and titles launched in 2023 [Expenses] Increase in variable costs, decrease in development costs covered by partners, etc ©KOEI TECMO GAMES CO., LTD. All Rights Reserved Compared to the previous quarter; ・Sales in the console sector declined in reaction to the launch of three new titles, including large titles, in the prior quarter. ・In the online and mobile sector, sales of the titles launched in 2023 declined. ・Expenses decreased because one-time expenses related to titles launched in the previous quarter. Compared to the previous quarter; ・Sales in the console sector decreased due to a higher proportion of royalty sales in current fiscal year. ・Sales in the online and mobile sector fell in reaction to the contribution of new titles in the previous year. ・Expenses increased overall as explained on page 2.

Highlight : Expense (million yen/person) FY23 FY24 Change % Change Change in Trend Q1 Q1 Employment Costs COGs 4,640 4,580 (60) -1.3% - SGA 1,170 1,190 20 1.7% - 5,810 5,770 (40) -0.7% downward trend in short-term No change in mid-term Outsourcing Costs COGs 1,500 1,380 (120) -8.0% No change Advertizing Costs SGA 530 550 20 3.8% No change Headcount*Excluding temporary employees. 2,536 2,736 200 7.9% No change ◆Other Expense - Development costs covered by partners(COG): Decreased YoY, decreased QoQ - Sales commissions and royalty expenses (SGA): increased YoY, decreased QoQ ©KOEI TECMO GAMES CO., LTD. All Rights Reserved ・This is the main expenses and the number of employees. ・Personnel expenses decreased year on year due to a reactionary decline in performance bonuses in the previous fiscal year. There has been no major change in trends, with active hiring and base pay increases continuing. ・For Outsourcing costs, development costs, server costs and debugging costs for future titles booked. In the previous fiscal year, we booked onetime expenses related to cooperative titles, which resulted in outsourcing cost for full year at a high level. We do not expect to record such one-time expenses in the current fiscal year. ・Advertising costs increased due to an increase in the number of mobile titles in operation. On the other hand, the rate of increase was smaller due to the absence of major events in this quarter.

Highlight : Performance by Segment (Million Yen) FY23 FY24 Change Q1 Q1 Entertainment Sales 17,117 16,581 (536) Operating Profit 7,329 5,701 (1,627) Amusement Sales 907 757 (150) Operating Profit 203 15 (188) Real Estate Sales 301 280 (21) Operating Profit 31 65 34 Others Sales 80 78 (2) Operating Profit (57) (58) (1) Corporate & Elimination Sales (109) (90) 19 Operating Profit - - - Total Sales 18,297 17,607 (690) Operating Profit 7,506 5,723 (1,783) [Entertainment Seg.] Console and mobile business: Decrease in sales and increase in expenses [Amusement Seg.] SP business: Decrease in consignment sales [Real Estate Seg.] Decrease in sales due to sale of one property, decrease in repair expenses ©KOEI TECMO GAMES CO., LTD. All Rights Reserved ・The entertainment segment is as explained in the consolidated financial results. ・In the amusement segment, in the SP sector, sales for contract development decreased. Sales of amusement facilities sector increased due to new stores opened in the previous year. ・In the real estate segment, although sales decreased due to the sale of one properties, profit increased because of a decrease in repair expenses booked in the previous year. ・In the other segment, the venture capital business recognized costs of funds invested in.

Entertainment Segment : Breakdown of Sales (Million Yen) FY23 FY24 Change % Change Q1 Q1 Console Physical package etc[1] 2,067 2,811 744 36.0% DL[2] 3,430 3,260 (170) -5.0% DLC[3] 590 580 (10) -1.7% 6,087 6,651 564 9.3% Online/ Online[4] 160 110 (50) -31.3% Mobile Mobile[5] 10,770 9,720 (1,050) -9.7% 10,930 9,830 (1,100) -10.1% Events & Goods 100 100 0 0.0% Sales for Entertainment Segment 17,117 16,581 (536) -3.1% Note: -The name of the classification has been changed, but there is no change in the way sales are divided or aggregated. -The Plan on the breakdown of sales and the actual value and percentage of contracts and licensed royalties are not disclosed. [1]Including sales for packages, royalty, commission fees (incl. %-of-completion basis), and down payment [4]Sales for MMORPG and some other titles(Uncharted Waters V, Uncharted Waters VI, Nobunaga's Ambition 20XX) [2]DL (download) sales: sales for digital copies via PSN/XboxLive/Switch DL/Steam [5]Including sales for online/mobile games, social games, browser games, and royalty from IP licensing-out [3]DLC (Download contents): Sales for additional items and scenario via download 6 ©KOEI TECMO GAMES CO., LTD. All Rights Reserved ・The breakdown of sales in the Entertainment segment is shown. ・The name of each sector has been changed from this time, but the method of calculation remains the same as before.

Pages: 22
Words: 3,007
Format: PDF
Type: Financial

Topics

View this document on Game Industry Library.

Related Documents

Financial

Square Enix Annual Report (Fragment)

The Square Enix Group operates under a central mission to leverage boundless imagination to create new content that resonates with global audiences and enriches daily lives. This strategic framework emphasizes the delivery of unforgettable experiences through a commitment to innovation, swift action, and collaborative evolution. By focusing on the transformation of creative energy into immersive worlds, the organization aims to maintain its position as a premier provider of entertainment while upholding core values of integrity and continuous improvement. Operational reviews and financial highlights indicate a multifaceted approach to the entertainment industry, spanning digital entertainment, amusement, and publication segments. The organizational structure is designed to support long-term stakeholder value by integrating environmental, social, and governance (ESG) principles into the core business model. This commitment to sustainability and corporate responsibility is presented as a fundamental component of the group’s identity, ensuring that creative pursuits are balanced with ethical operations and transparent governance. The scope of these activities is global, reflecting a history of expansion and a diverse portfolio of intellectual properties. Executive leadership focuses on navigating the evolving landscape of the gaming and media sectors by embracing challenges and fostering a culture of excellence. Through a combination of historical expertise and a forward-looking strategy, the group seeks to sustain its competitive edge and drive growth across all primary business units, ensuring that its creative output remains a significant force in the international market.

market-analysis investment global+1

Square EnixSept 2025

Financial

Consolidated Financial Results for the Year Ended March 31, 2025

Konami Group Corporation achieved record-breaking financial performance for the fiscal year ending March 31, 2025, characterized by a 17.0% year-on-year revenue increase to ¥421,602 million. This growth trajectory, which marks the second consecutive year of record highs across all profit categories, was primarily propelled by the Digital Entertainment segment. A 22.5% surge in revenue within this division, fueled by the robust performance of key console and mobile titles, solidified its position as the company’s primary financial engine. Operating profit reached ¥101,944 million, reflecting the efficacy of the current business strategy and operational scaling. Diversified growth was evident across other core divisions, with the Gaming & Systems segment recording a 7.4% revenue increase and the Amusement segment growing by 4.6%. Although the Sports segment faced a minor contraction in business profit, the company maintained a resilient financial foundation, concluding the period with ¥294,216 million in cash and cash equivalents. This stability has enabled a shareholder-friendly capital allocation policy, resulting in an increased annual dividend of ¥165.50 per share. Looking toward the fiscal year ending March 31, 2026, the organization maintains a positive outlook, projecting continued expansion. Strategic initiatives for the coming year include the launch of new game titles, the enhancement of casino management system features, and the further scaling of the Pilates Mirror and outsourced sports facility operations. With a dividend increase to ¥166.00 per share already projected, the company remains focused on leveraging its diversified portfolio to sustain long-term profitability and market leadership.

investment market-analysis japan+2

KonamiMay 2025

Financial

Nintendo Q1 FY2024 Financial Results (English)

Thunderful Group’s interim report for the first quarter of 2024 details a period of significant financial decline and aggressive corporate restructuring. Net revenue fell 27.7 percent to 391.7 MSEK, while the group recorded an operating loss (EBIT) of 184.4 MSEK, a sharp reversal from the 19.2 MSEK profit reported in the same period the previous year. This downturn was driven by a 35.5 percent revenue drop in the Games segment and a 25.7 percent decrease in Distribution, largely due to weaker market demand for Nintendo Switch products and the underperformance of the internal title SteamWorld Build. To address these challenges, the group initiated a restructuring program aimed at annual cost savings of 90–110 MSEK. This process involved a 72.4 MSEK write-down of capitalized development costs following the cancellation or divestment of twelve game projects. Strategic shifts include the divestment of the German publishing subsidiary Headup GmbH and the sale of Nordic Game Supply’s assets to reduce net debt. Despite these pressures, the group successfully extended its Nintendo distribution agreement for the Nordics and Baltics through March 2026 and reported 13.9 percent growth in its Amo Toys division. The report covers the group’s global operations with a focus on European and Nordic markets for the period of January to March 2024. Financial data indicates a strained liquidity position, with cash and credit facilities dropping to 130.9 MSEK from 329.3 MSEK year-over-year. Management secured a bank waiver conditional on asset divestments and maintains that current funds are sufficient for continued operations. The overarching strategy moving forward emphasizes a simplified games portfolio, more rigorous project validation, and a balanced risk profile across internal and external development.

market-analysis investment pc+3

NintendoJan 2024

Financial

Integrated Report 2022

Bandai Namco’s 2022 integrated report presents a unified growth strategy anchored in the “Fun for All into the Future” purpose, emphasizing an “IP‑axis” model that leverages more than 300 intellectual properties each year across entertainment, toys & hobby, and amusement businesses. The strategy seeks to fuse digital and physical experiences, expand metaverse ecosystems, and deepen global fan engagement, with a particular focus on flagship IPs such as Gundam, Dragon Ball, and Pac‑Man. Financial performance in fiscal 2022 demonstrated the resilience of this model: consolidated net sales reached ¥889.2 billion, operating profit ¥100 billion (a 14.1 % margin), and return on equity 16.9 %, surpassing pre‑COVID levels. Over the past six years, net sales grew from ¥620 billion in FY 2017 to ¥889 billion, assets rose to ¥584 billion, and basic earnings per share more than doubled. The mid‑term plan for FY 2022‑2025 targets ¥1.1 trillion in sales, ¥125 billion in operating profit, a ROE of at least 12 %, and an overseas‑sales share climbing from 29.7 % to 35 % by FY 2025, eventually reaching 50 %. Risk management acknowledges pandemic‑related disruptions, supply‑chain pressures, IP infringement, and cyber threats, while identifying digitalisation, online‑event platforms, and metaverse expansion as key growth levers. Sustainability is embedded as a core pillar, with CO₂ emissions falling 10.6 % to 52,016 t in FY 2022 and a 35 % reduction target by 2030, supported

market-analysis investment japan+1

Bandai NamcoSept 2022