FinancialKoei Tecmo
Consolidated Financial Results for the Six Months Ended September 30, 2024
28 Oct 20246 pages~9 min full read
Koei Tecmo Holdings reported a contraction in the first half of the fiscal year ending March 31, 2025, with net sales falling 11.4% to ¥35.19 billion and operating profit dropping 23.1% to ¥10.65 billion.
See it on page 2Profit attributable to owners of the parent decreased by 4.9% to ¥15.97 billion, while comprehensive income saw a sharp 44.2% decline to ¥13.02 billion due to valuation losses on securities.
See it on page 1The company’s ordinary profit was supported by significant non-operating income, including ¥9.94 billion in interest income and ¥3.27 billion in gains from the redemption of securities.
See it on page 5Despite the weak first-half performance, management maintains a full-year forecast of ¥90 billion in net sales and ¥30 billion in operating profit, representing modest growth of 6.4% and 5.3% respectively.
See it on page 2Full-year projections indicate a double-digit decline for both ordinary profit and net profit compared to the previous fiscal year.
See it on page 2The company maintains a stable financial position with total assets of ¥241.58 billion and a capital adequacy ratio of 70.7%.
See it on page 4Koei Tecmo Holdings plans to issue an annual dividend of ¥48.00 per share for the fiscal year ending March 31, 2025.
See it on page 1Koei Tecmo Holdings Co., Ltd. reported its consolidated financial results for the first half of the fiscal year ending March 31, 2025, covering the period from April 1, 2024, to September 30, 2024. The data reflects a period of contraction across several key performance indicators compared to the previous year. Net sales decreased by 11.4% to ¥35.19 billion, while operating profit saw a significant decline of 23.1%, falling to ¥10.65 billion. Profit attributable to owners of the parent also decreased by 4.9% to ¥15.97 billion.
The financial position remains stable with total assets valued at ¥241.58 billion and a capital adequacy ratio of 70.7%. Despite the downturn in operating profit, ordinary profit was bolstered by substantial non-operating income, including ¥9.94 billion in interest income and ¥3.27 billion in gains on the redemption of securities. However, comprehensive income fell sharply by 44.2% to ¥13.02 billion, primarily driven by a ¥2.68 billion loss in the valuation difference on available-for-sale securities.
Looking ahead to the full fiscal year ending March 31, 2025, the company maintains a forecast of ¥90 billion in net sales and ¥30 billion in operating profit, representing modest year-on-year growth of 6.4% and 5.3%, respectively. Conversely, ordinary profit and net profit are expected to decline by double digits for the full year. The company plans an annual dividend of ¥48.00 per share. These results were prepared under Japanese GAAP and represent the consolidated performance of the Japanese-based gaming and entertainment entity.
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.
