Consolidated Financial Results: Three Months Ended June 30, 2020

Konami experienced a challenging fiscal quarter ending June 30, 2020, as the global COVID-19 pandemic created significant volatility across its diversified business portfolio. Total consolidated revenue fell 6.3% year-on-year to ¥52,887 million, while operating profit suffered a more pronounced 32.4% decline to ¥6,772 million. These results reflect a period of intense operational disruption, particularly within physical-location-based business units that were forced to suspend operations to comply with public health mandates.

The company’s performance was characterized by a stark divergence between its digital and physical segments. The Digital Entertainment division demonstrated resilience and growth, bolstered by sustained demand for digital content and an increased focus on eSports. Conversely, the Amusement, Gaming & Systems, and Sports segments faced substantial downturns. The Sports segment was particularly impacted, recording a loss of ¥5,723 million directly attributable to widespread facility closures. Given the persistent economic uncertainty and the inability to predict the trajectory of the pandemic, management opted to withhold full-year earnings forecasts for the fiscal year ending March 31, 2021.

To fortify its financial position and ensure operational continuity, the organization successfully issued ¥60,000 million in unsecured bonds across three maturity terms. These funds are designated for capital expenditures and the repayment of existing debt, providing the necessary liquidity to navigate the ongoing crisis. Moving forward, the strategic focus remains on leveraging digital expansion and eSports to offset the instability inherent in its physical entertainment and sports operations.