Financial Highlights: 3rd Quarter of the Fiscal Year Ending March 2017

Key insights

7 takeaways

01
KOEI TECMO Holdings reported a significant revenue increase to ¥38.3 billion for the third quarter of fiscal 2016, up from ¥22.5 billion in the same period of the previous year.See it on page 1
02
Operating income rose 11.1% to ¥11.1 billion, while net income grew 12.3% to ¥10.9 billion, tracking closely toward the company's full-year forecast of ¥11 billion.See it on page 1
03
The entertainment segment remains the primary driver of financial performance, generating ¥34.7 billion in sales and contributing ¥10.4 billion to the total operating income.See it on page 1
04
Pachislot and pachinko revenue experienced a notable 26.8% year-over-year increase, reaching ¥1.79 billion.See it on page 1
05
The company improved its liquidity position as current liabilities dropped to ¥5.1 billion, while shareholders’ equity increased to ¥99.7 billion.See it on page 2
06
Amusement facilities and real-estate segments saw minor declines of 1.9% and 5.6% respectively, while the 'Other' segment grew by 169% to ¥137 million.See it on page 1
07
Total assets contracted slightly from ¥110.9 billion to ¥108.5 billion, despite an increase in cash and marketable securities.See it on page 2

Summary

Financial highlights for KOEI TECMO Holdings’ third quarter of fiscal 2016 reveal a robust revenue surge, with net sales rising to ¥38.3 billion from ¥22.5 billion in the same period of fiscal 2015, a 7.3% increase that aligns with the company’s forecast of 9.6%. Gross profit doubled to ¥18.9 billion, while operating income climbed to ¥11.1 billion, a 11.1% rise from the prior year’s ¥3.9 billion, reflecting improved profitability across key segments. Net income reached ¥10.9 billion, up 12.3% from ¥6.8 billion, supporting a forecasted net income of ¥11 billion.

Segment analysis shows entertainment sales leading at ¥34.7 billion, up 6.3% year-over-year, and a notable 26.8% jump in pachislot & pachinko revenue to ¥1.79 billion. Amusement facilities and real-estate sales experienced modest declines of 1.9% and 5.6%, respectively, while the “Other” segment posted a sharp 169% increase to ¥137 million. Operating income mirrored these trends, with entertainment contributing ¥10.4 billion and other segments delivering significant gains.

Balance-sheet data indicate a slight contraction in total assets from ¥110.9 billion to ¥108.5 billion, driven by reduced current assets and a modest rise in fixed-asset investments. Current liabilities fell sharply to ¥5.1 billion, improving liquidity, while shareholders’ equity increased to ¥99.7 billion. The company’s cash and marketable securities rose, supporting a stronger liquidity position as it approaches the fiscal year end.