Financial Highlights: 2nd Quarter FY2025

Key insights

7 takeaways · ~3 min read

01
Koei Tecmo Holdings experienced a decline in core operating performance for the first half of FY2025, with net sales falling 11.2% YoY to ¥31,268 million and operating profit dropping 25.2% to ¥7,964 million.See it on page 1
02
Comprehensive income surged 256.4% to ¥46,411 million, primarily driven by significant gains from investment securities and derivatives compared to a loss in the same period last year.See it on page 5
03
Profitability margins tightened during the six-month period ending September 30, with the operating margin decreasing from 30.6% to 25.4% and net income attributable to the parent falling 15.7% to ¥13,465 million.See it on page 1
04
Total assets grew by 49% to ¥314,239 million, supported by increased cash balances and a rise in investment securities, while the equity-to-asset ratio shifted to 78.9%.See it on page 1
05
Basic earnings per share declined from ¥50.58 to ¥42.61, reflecting the overall contraction in net income.See it on page 2
06
The company significantly reduced its treasury shares from 20.25 million to 2.01 million through a public offering and secondary issuance.See it on page 2
07
Koei Tecmo maintained its existing dividend policy, declaring no cash dividends for the first half of FY2025.See it on page 1

Summary

The financial highlights cover the first half of fiscal year 2025 for Koei Tecmo Holdings, a Tokyo‑listed video game and entertainment company. The six‑month period ending September 30 shows net sales of ¥31,268 million, down 11.2% YoY, while operating profit fell 25.2% to ¥7,964 million and ordinary profit declined 15.3% to ¥17,795 million. Comprehensive income surged 256.4%, driven largely by gains on investment securities and derivatives, reaching ¥46,411 million versus a 44.2% loss of ¥13,021 million in the prior year’s half.

Profitability metrics reveal a decline in gross margin from ¥20,593 million to ¥17,238 million and operating margin from 30.6% to 25.4%. Net income attributable to the parent fell 15.7% to ¥13,465 million, with basic earnings per share decreasing from ¥50.58 to ¥42.61. Total assets increased 49% to ¥314,239 million, largely due to a rise in investment securities and cash balances. Net assets grew 31% to ¥248,726 million, with the equity‑to‑asset ratio improving from 89.9% to 78.9%.

The report notes no significant consolidation changes, accounting policy shifts, or restatements. Treasury shares were reduced from 20.25 million to 2.01 million during the period, reflecting a public offering and secondary issuance. Dividend policy remains unchanged, with no cash dividends declared for the first half of FY 2025. The company’s financial position is strengthened by higher liquidity and a solid equity base, but operating performance has weakened relative to the previous year.