Financial Results for the Q3: Fiscal Year Ending March 2025

The presentation reports KOEI TECMO HOLDINGS’ consolidated financial performance for the third quarter of fiscal 2025, ending March 2025. Sales fell by 14 % YoY to ¥61.1 billion, driven by a shift from new console/PC releases in FY23 to fewer titles and reliance on existing mobile IPs in FY24. Operating profit declined 25.8 % to ¥20.3 billion, while ordinary and net profits remained near flat, with net profit up 3.6 % to ¥25.2 billion. The Entertainment segment contributed the bulk of sales, yet its revenue dropped 14.9 % due to weaker console/PC and mobile performance; the Amusement, Real Estate, and Other segments showed modest gains or losses. Personnel costs rose 10 % YoY, offset by reductions in outsourcing and advertising expenses.

Expense trends indicate a continued emphasis on hiring and base‑pay increases, with outsourcing costs decreasing after one‑time collaboration outlays. The company maintains a 50 % payout ratio, allocating half of net profit to dividends and buybacks and the remainder to growth investments. Forecasts for FY24 remain unchanged, targeting ¥90 billion in sales and operating profit of ¥30 billion, contingent on the success of upcoming console titles such as “Dynasty Warriors: ORIGINS.” The Q4 outlook anticipates more than five new releases, with a major title expected to drive sales. The company also outlines measures to meet Tokyo Stock Exchange Prime Market listing standards by March 2026, including actions to achieve a 35 % free‑float ratio.