Fiscal Year Ending 1st Half Financial Overseas Titles

Key insights

7 takeaways

01
For the first half of the fiscal year ending September 2010, net sales fell to 11,069 million yen from 15,264 million yen, resulting in an operating loss of 1,656 million yen.See it on page 2
02
The company maintains a full-year forecast of 34,500 million yen in sales and a projected operating profit of 4,000 million yen.See it on page 8
03
Operating losses were impacted by 510 million yen in goodwill amortization expenses following the merger of Koei and Tecmo and the acquisition of Koei Net Co., Ltd.See it on page 2
04
Management aims to increase overseas revenue from 15.8% to 18.1% of total sales by the end of the fiscal year, with a focus on growth in North America and Europe.See it on page 23
05
A new Global Marketing Department has been established to integrate international market feedback into the early stages of game development.See it on page 23
06
The company is prioritizing expansion into social and mobile gaming, evidenced by the success of 'Nobunaga’s Ambition for Everyone,' which reached over one million users on the Mobage platform.See it on page 21
07
Future digital strategy centers on continuous content releases, smartphone implementation, and entry into global social platforms like Facebook.See it on page 21

Summary

Tecmo Koei Holdings’ financial performance for the first half of fiscal year 2010 reflects a period of transition and investment, characterized by a year-over-year decline in sales and operating profit. Total sales for the first half reached 11,069 million yen, a 27.5% decrease compared to the same period in the previous year. The company reported an operating loss of 1,656 million yen, influenced by significant goodwill amortization expenses related to the merger of Koei and Tecmo and the acquisition of Koei Net Co., Ltd. Despite these short-term financial pressures, the company maintains a positive outlook for the full fiscal year, projecting a return to profitability with an anticipated operating profit of 4,000 million yen.

The company’s strategic focus is shifting toward the high-growth social gaming sector, leveraging its established intellectual property to capture broader demographics. Key successes in this area include the launch of "Nobunaga's Ambition for Everyone" and "Romance of The Three Kingdoms for Everyone," both of which achieved high rankings on major social platforms and reached significant user milestones. To support this pivot, the company has established a dedicated Network Business Division to accelerate development cycles and integrate its existing expertise in online and mobile gaming.

Geographically, the company remains heavily reliant on the Japanese market, which accounted for 85.5% of sales in the first half of 2010. However, management is prioritizing international expansion through the newly formed Global Marketing Department. This initiative aims to integrate overseas market requirements into the early stages of title development and strengthen promotional efforts in North America and Europe. Future growth strategies emphasize the continued development of social games, expansion into smartphone content, and a broader push into international social media platforms like Facebook to diversify revenue streams beyond the domestic market.