Financial Highlights: 1st Half of the Fiscal Year Ending March 2015

Key insights

7 takeaways

01
KOEI TECMO HOLDINGS achieved a 99.6% increase in operating income to ¥7,140 million and a 76.5% rise in net income to ¥6,936 million for the first half of the fiscal year ending March 2015.See it on page 1
02
Net sales grew 4.2% year-on-year to ¥37,576 million, fueled by a 1.0% increase in game software sales and a 7.1% rise in online and mobile revenue.See it on page 1
03
Profitability in the game software segment surged with an 89.5% increase in operating profit, while the online and mobile segment saw a 30.8% profit gain.See it on page 1
04
The media and rights segment experienced significant growth, with sales rising 44.3% and operating income jumping 336.7% year-on-year.See it on page 1
05
Liquidity improved as of September 30, 2014, with current liabilities decreasing to ¥5,093 million from ¥10,122 million in the prior year.See it on page 2
06
Shareholders' equity strengthened to ¥91,269 million, up from ¥88,788 million, driven by growth in retained earnings.See it on page 2
07
While core digital and media segments performed strongly, the pachislot and pachinko and amusement facilities segments faced operating income declines of 10.6% and 59.0%, respectively.See it on page 1

Summary

Financial highlights for the first half of fiscal year 2014, ending March 31 2014, show robust growth across KOEI TECMO HOLDINGS’ core segments. Net sales rose 4.2% year-on-year to ¥37,576 million, driven primarily by game software sales that increased 1.0% to ¥25,441 million and online & mobile revenue that grew 7.1% to ¥6,423 million. Media & rights sales surged 44.3%, while pachislot & pachinko and amusement facilities experienced moderate gains of 8.7% and 9.3%, respectively. Operating income expanded dramatically by 99.6% to ¥7,140 million, largely due to a 89.5% jump in game software operating profit and a 30.8% rise in online & mobile profits. Net income climbed 76.5% to ¥6,936 million, reflecting improved profitability across most segments.

Segment-level operating income highlights include a 336.7% increase in media & rights and a 23.5% rise in online & mobile, while pachislot & pachinko and amusement facilities saw declines of 10.6% and 59.0%. Corporate & elimination costs increased, offsetting some gains.

Balance-sheet data as of September 30 2014 show total assets at ¥99,132 million, slightly down from the prior year’s ¥100,622 million. Current assets fell to ¥18,855 million from ¥25,274 million, largely due to reduced cash and time deposits. Current liabilities dropped to ¥5,093 million from ¥10,122 million, improving liquidity. Shareholders’ equity increased to ¥91,269 million from ¥88,788 million, supported by retained earnings growth and a modest rise in accumulated other comprehensive income.

Overall, the first half of FY2014 delivered strong revenue and earnings growth, particularly in digital and media segments, while maintaining a solid balance-sheet position with improved liquidity and equity.