Updated Mar 23, 2026 by Koei Tecmo
KOEI TECMO reported a 1.6% year-on-year decline in consolidated sales to ¥52.57 billion and a 3.3% drop in operating profit to ¥15.08 billion for Q3 of fiscal 2026.
The company maintained its full-year FY25 forecast of ¥92 billion in sales and ¥31 billion in operating profit, despite projecting a 28.2% decline in net profit to ¥27 billion and a 28.3% dividend reduction to ¥43 per share.
Entertainment segment performance was mixed, as a ¥2.3 billion gain from console/PC titles like 'NINJA GAIDEN 4' and 'Hyrule Warriors: Age of Imprisonment' was offset by a ¥3.8 billion decline in online and mobile revenue.
Rising operational costs are primarily driven by a 10% annual increase in employment expenses, which were partially mitigated by lower-than-forecasted spending on outsourcing and advertising.
Non-entertainment segments showed minor growth, with amusement and real-estate units posting revenue increases of ¥333 million and ¥34 million, respectively.
The Q4 strategy focuses on stabilizing revenue through a balanced pipeline, including the release of 'Nioh 3' and increased advertising spend for existing mobile titles.
KOEI TECMO reported a 1.6% year-on-year decline in consolidated sales to ¥52.57 billion and a 3.3% drop in operating profit to ¥15.08 billion for Q3 of fiscal 2026.
The company maintained its full-year FY25 forecast of ¥92 billion in sales and ¥31 billion in operating profit, despite projecting a 28.2% decline in net profit to ¥27 billion and a 28.3% dividend reduction to ¥43 per share.
Entertainment segment performance was mixed, as a ¥2.3 billion gain from console/PC titles like 'NINJA GAIDEN 4' and 'Hyrule Warriors: Age of Imprisonment' was offset by a ¥3.8 billion decline in online and mobile revenue.
Rising operational costs are primarily driven by a 10% annual increase in employment expenses, which were partially mitigated by lower-than-forecasted spending on outsourcing and advertising.
Non-entertainment segments showed minor growth, with amusement and real-estate units posting revenue increases of ¥333 million and ¥34 million, respectively.
The Q4 strategy focuses on stabilizing revenue through a balanced pipeline, including the release of 'Nioh 3' and increased advertising spend for existing mobile titles.