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

Key insights

6 takeaways

01
Koei Tecmo achieved record-high first-half sales of ¥39.7 billion, a 14.3% year-on-year increase driven by Fate/Samurai Remnant and the mobile title Atelier Resleriana.See it on page 9
02
Operating profit fell 24.4% to ¥13.8 billion due to rising labor and subcontracting costs, though ordinary profit grew 31.3% to ¥23.2 billion.See it on page 18
03
The company is targeting full-year net sales of ¥95 billion, supported by projected growth of 37.9% in the Japanese market and 22.6% in overseas unit sales.See it on page 18
04
Management maintains a long-term goal of ¥100 billion in annual sales and ¥40 billion in operating profit by the end of the fiscal year 2024.See it on page 18
05
Future growth strategy centers on the development of new global franchises capable of selling five million units, with Rise of the Ronin identified as a key upcoming title.See it on page 20
06
To maintain technical competitiveness, the company has implemented eight consecutive years of base salary increases and utilizes the proprietary Katana Engine to manage multi-platform development.See it on page 31

Summary

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.