Konami Holdings Corporation Annual Financial Report 2021

Key insights

6 takeaways

01
Konami achieved a consolidated revenue of ¥272.7 billion for the fiscal year ending March 31, 2021, driven primarily by the Digital Entertainment segment which accounted for 74.6% of total revenue.See it on page 54
02
Profit attributable to owners of the parent rose by 62.2% year-over-year to ¥32.3 billion, resulting in a diluted earnings per share of ¥238.33.See it on page 5
03
The company recorded significant impairment losses, including ¥17,053 million in the Sports segment and over ¥3,400 million in intangible assets across the Digital Entertainment and Amusement divisions due to pandemic-related disruptions.See it on page 29
04
Total assets expanded to ¥489.0 billion and total equity reached ¥299.5 billion, maintaining a stable financial position despite declines in the Amusement, Gaming & Systems, and Sports segments.See it on page 25
05
PricewaterhouseCoopers Aarata LLC issued an unqualified opinion on the financial statements, identifying the valuation of intangible assets and revenue recognition methodologies as key audit focus areas.See it on page 64
06
The organization is prioritizing the mitigation of operational risks such as data security breaches and system interruptions while ensuring compliance with global regulatory frameworks like GDPR.See it on page 80

Summary

Konami Holdings Corporation demonstrated resilient financial performance during the fiscal year ending March 31, 2021, despite the significant operational challenges posed by the global pandemic. The company achieved a consolidated revenue of ¥272.7 billion, marking a year-over-year increase from the previous period. This growth was primarily fueled by the Digital Entertainment segment, which accounted for 74.6% of total revenue through strong performance in mobile and console gaming. Consequently, the profit attributable to owners of the parent rose by 62.2% to ¥32.3 billion, resulting in a diluted earnings per share of ¥238.33.

The company’s financial health is underpinned by a robust balance sheet, with total assets expanding to ¥489.0 billion and total equity reaching ¥299.5 billion. While the Digital Entertainment division thrived, the Amusement, Gaming & Systems, and Sports segments experienced notable declines due to COVID-19-related disruptions. These headwinds necessitated significant impairment losses, including ¥17,053 million within the Sports segment and over ¥3,400 million in intangible assets across the Digital Entertainment and Amusement divisions. Despite these adjustments, the company maintained stable capital management and consistent dividend payments.

Independent auditors, PricewaterhouseCoopers Aarata LLC, provided an unqualified opinion, confirming that the financial statements adhere to International Financial Reporting Standards. Key audit focus areas included the valuation of intangible assets and revenue recognition methodologies, both of which rely heavily on management estimates. Looking forward, the organization remains focused on mitigating operational risks, such as data security breaches and system interruptions, while ensuring strict adherence to global regulatory frameworks like GDPR. By maintaining a strong liquidity position and avoiding debt-collateralized assets, the group has established a stable foundation for navigating ongoing market volatility.