Koei Tecmo Holdings Q1 2025 Consolidated Financial Results

Key insights

7 takeaways

01
Koei Tecmo reported a significant decline in Q1 2025 financial performance, with net sales falling 15.9% year-on-year to 14,800 million yen and operating profit dropping 37.5% to 3,574 million yen.See it on page 1
02
Profit attributable to owners of the parent decreased by 55.5% compared to the same period last year, falling from 13,638 million yen to 6,072 million yen.See it on page 6
03
Basic earnings per share dropped sharply to 19.23 yen for the quarter ending June 30, 2025, down from 43.18 yen in the prior year period.See it on page 1
04
The company maintains its full-year forecast for the fiscal year ending March 31, 2026, projecting 92,000 million yen in net sales and 31,000 million yen in operating profit.See it on page 2
05
Total assets increased to 243,402 million yen as of June 30, 2025, up from 209,828 million yen at the end of March 2025, largely driven by an increase in investment securities and property, plant, and equipment.See it on page 3
06
Current liabilities rose significantly to 51,845 million yen from 18,914 million yen, primarily due to the addition of 35,000 million yen in short-term borrowings.See it on page 4
07
The company projects an annual dividend of 43.00 yen per share for the fiscal year ending March 31, 2026, with no revisions made to the dividend forecast.See it on page 2

Summary

Koei Tecmo Holdings reports a decline in financial performance for the first quarter of the fiscal year ending March 31, 2026, covering the period from April 1, 2025, to June 30, 2025. The company recorded net sales of 14,800 million yen, representing a 15.9% decrease compared to the same period in the previous year. Operating profit fell by 37.5% to 3,574 million yen, while profit attributable to owners of the parent declined by 55.5% to 6,072 million yen.

The consolidated financial position as of June 30, 2025, shows total assets of 243,402 million yen, an increase from the 209,828 million yen reported at the end of the previous fiscal year. This growth is largely attributed to a rise in non-current assets, specifically property, plant, and equipment, and investment securities. Conversely, total liabilities rose significantly to 56,283 million yen, driven primarily by the introduction of 35,000 million yen in short-term borrowings. The capital adequacy ratio stands at 76.5%, reflecting a decrease from the 89.9% reported on March 31, 2025.

Management maintains its full-year forecast for the fiscal year ending March 31, 2026, projecting net sales of 92,000 million yen and an operating profit of 31,000 million yen. These figures suggest an anticipated recovery in the latter half of the fiscal year despite the challenging start. The company continues to operate under Japanese GAAP standards, with no changes to accounting policies or the scope of consolidation reported for this period.