FinancialKoei Tecmo
Financial Results for the FY 2024 and 4th Mid-term Management Plan
1 Jan 202454 pages~28 min full read
Koei Tecmo achieved a net profit of 37.6 billion yen in FY 2024, an 11.4% year-over-year increase that exceeded expectations despite a 1.7% dip in total sales.
The company’s fourth mid-term management plan (FY 2025–2027) targets a cumulative operating profit of over 100 billion yen and a 30% profit margin to secure a top-ten global ranking in digital entertainment.
Console and PC digital download sales surged by 57% in FY 2024, successfully offsetting an 11 billion yen decline in mobile revenue.
Strategic investment is shifting heavily toward the Console and PC sector, which will receive 65% of development funding to support the annual release of AAA titles and new IPs targeting five million unit sales.
FY 2025 sales are projected to reach 92 billion yen, driven by a 25.3% increase in overseas revenue and upcoming titles developed for the successor to the Nintendo Switch.
Koei Tecmo will undergo a leadership transition in June 2025, appointing Hisashi Koinuma as President and CEO while restructuring the board to include a majority of external directors.
The company maintains a commitment to high shareholder returns with a 50% total payout ratio while reinvesting profits into human capital and development infrastructure.
Koei Tecmo concluded fiscal year 2024 with a net profit of 37.6 billion yen, representing an 11.4% year-over-year increase that surpassed initial expectations. While total sales experienced a marginal dip of 1.7%, the Console and PC segment demonstrated significant strength, characterized by a 57% surge in digital download sales. This performance effectively mitigated an 11 billion yen decline in mobile revenue. To sustain this momentum and meet Tokyo Stock Exchange Prime Market standards, the organization is undergoing a leadership transition in June 2025, appointing Hisashi Koinuma as President and CEO while restructuring governance to include a majority of external directors.
The fourth mid-term management plan, spanning fiscal years 2025 through 2027, establishes a strategic roadmap to achieve a cumulative operating profit exceeding 100 billion yen and a consistent 30% profit margin. The long-term objective is to secure a position among the top ten global digital entertainment companies. To reach these targets, the strategy prioritizes the annual release of AAA-class titles and the development of new intellectual properties capable of selling five million units. Development investment is heavily weighted toward the Console and PC sector, which receives 65% of allocated funding, while global marketing efforts will expand into emerging regions such as the Middle East and North Africa.
Financial forecasts for fiscal year 2025 project sales growth to 92 billion yen, supported by a 25.3% increase in overseas revenue and a robust pipeline that includes titles for the successor to the Nintendo Switch. Although sales are expected to rise by over 10%, operating profit is forecasted to remain stable at 31 billion yen as the company reinvests in human capital and development infrastructure. This growth strategy is underpinned by the enduring performance of core franchises like Dynasty Warriors and Nobunaga’s Ambition, alongside a commitment to high shareholder returns through a 50% total payout ratio and agile fund management.
