Financial Highlights for the 1st Quarter of FY2010

Key insights

7 takeaways

01
Tecmo Koei Holdings reported a Q1 FY2010 net loss of 331 million yen and an operating loss of 833 million yen, driven by a 23.5% decline in total net sales to 5,332 million yen.
02
The core Game Software segment suffered a 32.3% revenue drop to 2,990 million yen and incurred an operating loss exceeding 1 billion yen.
03
Despite the poor start, the company projects a full-year recovery with net sales reaching 36,500 million yen, a 5.8% increase over the previous year.
04
Management forecasts a significant turnaround in profitability for the full fiscal year, targeting an operating income of 5,000 million yen, representing a 680% increase over the prior year's total.
05
The Online and Mobile segment experienced a 29.3% revenue decline during the quarter.
06
The Pachislot and Pachinko division showed strong performance, growing sales by 36.1% and more than doubling operating income to 345 million yen.
07
The Media and Rights division demonstrated resilience with 18.8% year-over-year sales growth.

Summary

Tecmo Koei Holdings experienced a challenging start to the fiscal year ending March 2011, reporting significant year-over-year declines across its primary business segments during the first quarter. Net sales for the period fell by 23.5% to 5,332 million yen, down from 6,970 million yen in the previous year’s first quarter. This downturn contributed to an operating loss of 833 million yen and a net loss of 331 million yen, reflecting a period of contraction compared to the prior year’s performance.

The Game Software segment, the company’s largest division, was the primary driver of this decline, with sales dropping 32.3% to 2,990 million yen and operating losses widening to over 1 billion yen. Similarly, the Online and Mobile segment saw a 29.3% decrease in revenue. In contrast, smaller divisions such as Media and Rights and Pachislot and Pachinko showed resilience, posting year-over-year sales growth of 18.8% and 36.1% respectively. The Pachislot and Pachinko segment was particularly notable for more than doubling its operating income to 345 million yen during the quarter.

Despite the weak first-quarter results, the financial outlook for the full fiscal year remains optimistic. Projections suggest a recovery with total net sales expected to reach 36,500 million yen, representing a 5.8% increase over the previous full year. Most significantly, the company forecasts a substantial turnaround in profitability, targeting an operating income of 5,000 million yen—a 680% increase over the prior year’s total. This recovery is predicated on a strong rebound in the Game Software segment and continued growth in the Pachislot and Pachinko business, suggesting a back-heavy release schedule or anticipated operational efficiencies for the remainder of the year.