Financial

Financial Results for the First Half of the Fiscal Year Ending March 2026

1 January 202520 pages4,221 words

Summary

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.

Pages

View all

Citation

Generating citation...

Similar Documents

Financial

Financial Results for the First Half of the Fiscal Year Ending March 2025

Koei Tecmo experienced a transitional first half for the fiscal year ending March 2025, characterized by an 11.4% decline in sales to 35,197 million yen and a 23.1% drop in operating profit. This downturn resulted from a sparse release schedule compared to the previous year, though the impact was mitigated by robust back-catalog performance and disciplined cost management regarding advertising and outsourcing. Despite these short-term headwinds, the organization exceeded initial profit forecasts and remains on track to meet full-year targets, anticipating a significant recovery driven by a dense schedule of major releases in the second half of the fiscal year. The long-term strategic objective is to secure a position among the top ten global gaming companies by maintaining a 30% operating profit margin and achieving an operating income target of 40 billion yen. This growth plan centers on the development of AAA-class titles, with a specific focus on establishing new intellectual properties capable of selling five million units. To facilitate this, a dedicated AAA Studio has been established alongside seven distinct development departments. These teams utilize the proprietary Katana Engine to enhance graphical fidelity and production efficiency through integrated AI and automation, ensuring a steady pipeline of self-published hits across console, PC, and mobile platforms. Global expansion remains a primary focus, with strengthened publishing infrastructures in North America, Europe, and China, alongside targeted entry into emerging markets in Southeast Asia and India. While domestic Japanese revenue is expected to soften, international growth is projected to drive a 6.4% increase in annual sales to 90 billion yen. To sustain this momentum, the organization is aggressively investing in human capital, planning to hire over 200 employees in the current fiscal year while implementing industry-leading salary increases and expanding corporate infrastructure. This multi-layered revenue strategy balances high-margin IP licensing with large-scale global development to ensure long-term financial stability and shareholder returns.

investment market-analysis japan

Koei TecmoOct 2024

Financial

Financial Results for the First Half of the Fiscal Year Ending March 2023

Koei Tecmo’s financial performance for the first half of the fiscal year ending March 2023 reflects a strategic transition toward large-scale global expansion and long-term intellectual property development. While net sales experienced a slight year-on-year decline of 6.6% to 34.76 billion yen, operating profit grew by 11.6% to 18.32 billion yen. This growth was supported by a 28.2% increase in software unit sales, totaling 4.68 million units, led by the success of titles such as Fire Emblem Warriors: Three Hopes. Despite a drop in net profit caused by lower non-operating income, the company remains on track to meet its full-year sales forecast of 77 billion yen. The current fiscal year serves as the foundation for a medium-term management plan spanning through FY2024, which aims to achieve 100 billion yen in sales and 40 billion yen in operating profit. Central to this strategy is the pursuit of a new global intellectual property capable of selling five million units, supported by a pipeline of annual releases targeting two million units each. Upcoming major titles like Wild Hearts and Wo Long: Fallen Dynasty are critical to this international push, as overseas markets are projected to account for over 71% of total unit sales. Operational stability and technical efficiency underpin these ambitious financial targets. The company leverages its proprietary Katana Engine to streamline development across a multi-layered revenue cycle that includes console software, mobile gaming, and IP licensing. With a focus on high-growth segments, the company seeks to establish mobile titles generating monthly revenues between one and two billion yen. Furthermore, a twelve-year streak of profitability and an industry-leading low employee turnover rate of 4.2% provide the organizational continuity necessary to execute these high-cost, high-reward global projects.

market-analysis investment japan

Koei TecmoOct 2022

Financial

Financial Results for the First Half of the Fiscal Year Ending March 2020

Koei Tecmo reported a 4.8% year-on-year decrease in sales to ¥16.56 billion and a 26.6% drop in operating profit for the first half of the fiscal year ending March 2020. These declines were primarily driven by lower console sales and rising development costs associated with future projects. However, ordinary and net profits exceeded initial projections due to robust non-operating income and significant growth in the online and mobile segments. This success was largely fueled by IP licensing and the performance of smartphone titles, which helped offset the impact of increased fixed costs related to the completion of the Minato-Mirai office and expanded development teams. The current fiscal year serves as a strategic preparation period for the company’s 2020 mid-term goals. Despite the early dip in operating profit, the full-year forecast remains unchanged at ¥43 billion in sales, representing a 10.3% year-on-year increase. This growth is expected to be driven by a 29.6% surge in overseas sales and a 61.4% rise in international console unit volume. Recent successes, such as the strong performance of Atelier Ryza and the critical acclaim for co-developed titles like Fire Emblem: Three Houses, provide a foundation for this expansion. Long-term strategy focuses on the creation of global intellectual properties and multi-platform expansion. The company is targeting an operating profit of ¥17 billion by the end of the next fiscal year, supported by the development of a major AAA console title aimed at selling five million units and a top-tier mobile title capable of generating ¥1 billion in monthly revenue. With a pipeline featuring high-profile releases such as Nioh 2 and Persona 5 Scramble, the company aims to leverage its royalty income and international reach to achieve sustainable growth across the global gaming market.

investment market-analysis japan

Koei TecmoOct 2019

Financial

Financial Results for the First Half of the Fiscal Year Ending March 2021

Koei Tecmo achieved record-high financial performance during the first half of the fiscal year ending March 2021, characterized by a 39.7% increase in sales to ¥23.1 billion and a 145.6% surge in operating profit to ¥8.4 billion. This growth was primarily catalyzed by a multi-tiered revenue structure that emphasizes high-margin royalty income from intellectual property licensing and robust performance in the mobile segment. Notably, the licensed title Romance of the Three Kingdoms Senryaku-ban maintained a top-three sales ranking in the Chinese market for seven consecutive months, illustrating the success of the company’s global expansion strategy. The entertainment segment further benefited from steady back-catalog sales of established titles such as Nioh 2 and Atelier Ryza. While the company incurred a minor extraordinary loss of ¥124 million due to COVID-19 impacts on physical amusement facilities, the overall digital and licensing momentum more than offset these pressures. Strategic management decisions included shifting the launch of a major new IP, targeted for five million units in sales, to fiscal year 2022 to maximize quality and align with the capabilities of next-generation hardware. Based on these results, the full-year ordinary profit forecast has been upwardly revised to ¥25 billion. Management intends to sustain this positive growth cycle through a combination of internal game engine optimization, multi-platform global releases, and the transition of successful new IPs into long-term series. To reflect this strong financial position and enhance shareholder value, a 1:1.3 stock split is scheduled for April 2021, signaling confidence in the company’s ability to meet its mid-term management objectives through continued international scaling and high-quality project management.

market-analysis investment japan+1

Koei TecmoOct 2020

Financial

Financial Results for the First Half of the Fiscal Year Ending March 2024

Koei Tecmo achieved record-high sales of ¥39.7 billion during the first half of the fiscal year ending March 2024, representing a 14.3% year-on-year increase. This growth was primarily fueled by the successful launch of Fate/Samurai Remnant and record performance within the mobile gaming segment, specifically through titles like Atelier Resleriana. While operating profit experienced a 24.4% decline to ¥13.8 billion due to increased labor and subcontracting expenses, ordinary profit rose significantly by 31.3% to ¥23.2 billion. These results reflect a robust financial position as the company pursues its Third Medium-Term Management Plan, which targets ¥100 billion in annual sales and ¥40 billion in operating profit by the end of fiscal year 2024. The strategic focus remains on a multi-layered revenue cycle that prioritizes global intellectual property expansion and high-performance smartphone titles. Projections for the full fiscal year anticipate ¥95 billion in net sales, supported by a 37.9% increase in the Japanese market and a 22.6% rise in overseas unit sales. To sustain this momentum, the company is leveraging its proprietary Katana Engine and a disciplined project management framework to ensure consistent profitability across multi-platform releases. Key upcoming titles, such as Rise of the Ronin, are central to the objective of establishing new global franchises capable of selling five million units. Long-term stability is anchored in a combination of IP licensing and internal human capital development. The company has implemented eight consecutive years of base salary increases to foster innovation and maintain a competitive edge in technical proficiency. By balancing established franchises like Romance of the Three Kingdoms and Warriors with new collaborations and digital-first strategies, the organization aims to mitigate development risks while maximizing the lifecycle of its core assets across global markets.

investment market-analysis japan

Koei TecmoOct 2023

Financial

Fiscal Year Ending March 2019: 1st Half Financial Results

Koei Tecmo Holdings reported record-breaking financial results for the first half of the fiscal year ending March 2019, characterized by significant growth in profitability and the expansion of its global intellectual property (IP) portfolio. Net sales reached 17.4 billion yen, a 16.7% increase year-over-year, while operating profit surged by 64.3% to 4.68 billion yen. This performance was driven by high-margin royalty income from licensed titles and the continued success of the smartphone game sector, resulting in an improved operating profit ratio of 26.9%. The strategic focus centers on three primary pillars: creating global AAA titles with sales targets of 5 million copies, developing smartphone titles capable of generating 1 billion yen in monthly revenue, and collaborating with leading overseas IPs. Key product milestones during this period included the continued success of Nioh, which surpassed 2 million copies, and the strong performance of licensed mobile titles like Shin-Sangoku-shi and Dynasty Warriors: Unleashed, both of which achieved high rankings on the App Store and Google Play in Japan. Geographically, Japan remains the largest market, accounting for approximately 66% of sales, though the Asia region saw the most dramatic growth with a 46.1% increase in revenue. While unit sales for packaged software saw a slight decline of 6.6% to 2.39 million units, the company offset this through digital growth and licensing. Looking forward, the mid-term management plan aims for 51 billion yen in sales and 21 billion yen in ordinary profit by fiscal year 2020, supported by upcoming major releases such as Dead or Alive 6 and Nioh 2, alongside a full-scale entry into the Chinese market and the completion of a new office in Minato Mirai.

market-analysis investment japan

Koei TecmoJan 2018

Financial Results for the First Half of the Fiscal Year Ending March 2026

Summary

Tags

Pages

Citation

Citation

Similar Documents

Financial Results for the First Half of the Fiscal Year Ending March 2025

Financial Results for the First Half of the Fiscal Year Ending March 2023

Financial Results for the First Half of the Fiscal Year Ending March 2020

Financial Results for the First Half of the Fiscal Year Ending March 2021

Financial Results for the First Half of the Fiscal Year Ending March 2024

Fiscal Year Ending March 2019: 1st Half Financial Results