FinancialKoei Tecmo
Financial Results for the First Half of the Fiscal Year Ending March 2026
1 Jan 202520 pages~21 min full read
Koei Tecmo reported a year-on-year decline for the first half of the fiscal year ending March 2026, with sales down 11.2% and operating profit down 25.2% due to a sparse release schedule.
Management maintained full-year guidance, anticipating a second-half recovery driven by a concentrated launch window that includes the release of Dynasty Warriors: Origins.
The company plans to release eleven console and PC titles and two mobile games in the second half of the fiscal year, prioritizing high-profile remakes like Romance of the Three Kingdoms 8 and Fatal Frame II.
Strategic growth initiatives include transitioning to in-house publishing for large-scale projects and expanding market presence in North America, Europe, and the Middle East and North Africa.
The company is pursuing a three-year cumulative operating income target of 100 billion yen as part of its Fourth Medium-Term Management Plan.
Koei Tecmo increased its tradable share ratio to 37.3% through a treasury share offering to comply with Tokyo Stock Exchange Prime Market listing criteria.
Koei Tecmo experienced a year-on-year decline in financial performance during the first half of the fiscal year ending March 2026, with sales dropping 11.2% and operating profit falling 25.2%. This downturn resulted primarily from a sparse release schedule and lower revenue within the online and mobile segments. However, the company outperformed its internal forecasts due to resilient back-catalog sales and disciplined expense management. Full-year guidance remains unchanged as management anticipates a significant recovery in the second half, driven by a concentrated launch window for major titles such as Dynasty Warriors: Origins.
The strategic focus for the remainder of the fiscal year involves a robust pipeline of eleven console and PC titles alongside two mobile releases. By prioritizing high-profile remakes like Romance of the Three Kingdoms 8 and Fatal Frame II, the company seeks to secure stable profit margins while transitioning toward a global, digital-first marketing infrastructure. This shift includes a move toward in-house publishing for large-scale projects and a concerted effort to expand market share in North America, Europe, and emerging regions such as the Middle East and North Africa.
Long-term objectives are anchored by the Fourth Medium-Term Management Plan, which targets a cumulative three-year operating income of 100 billion yen. To achieve this, the company is balancing the maintenance of established franchises with the development of new intellectual properties and cross-media expansions into anime and merchandise. Furthermore, corporate governance milestones were met through a treasury share offering that increased the tradable share ratio to 37.3%, ensuring continued compliance with Tokyo Stock Exchange Prime Market listing criteria.
