Financial Results for the First Quarter: Fiscal Year Ending March 2027

Koei Tecmo Holdings’ financial results for the first quarter of the fiscal year ending March 2027 demonstrate strong growth, characterized by a 17.4% year-on-year increase in sales to 17.368 billion yen. Operating profit rose significantly by 51.3% to 5.407 billion yen, while net profit grew by 86.9% to 11.348 billion yen. This performance was primarily driven by the entertainment segment, which benefited from robust sales of console, PC, and mobile titles, alongside steady contributions from the amusement and real estate sectors.

The company’s entertainment business remains the core growth driver, with sales reaching 15.930 billion yen. While the quarter lacked major new releases, the firm successfully leveraged its back catalog and existing mobile titles to maintain momentum. The console and PC sector saw a notable increase in digital download sales, while the mobile sector continued to provide stable revenue through existing titles and licensing royalties. Total headcount reached 3,015 employees by the end of June 2026, reflecting a strategic commitment to expanding development capacity.

Management maintains its full-year earnings forecast, projecting 90 billion yen in sales and 32 billion yen in operating profit. The company’s long-term strategy, outlined in its 4th Medium-Term Management Plan, focuses on creating a foundation for growth through a balanced portfolio of major and mid-range titles. Key strategic pillars include aggressive investment in human capital—with personnel costs expected to rise by approximately 10% annually—and the integration of generative AI to enhance operational efficiency and game quality. The company remains committed to a 50% total payout ratio, prioritizing sustainable shareholder returns alongside its goal of entering the top ten global entertainment companies by 2033.