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Market Analysis

Financial Highlights: 3rd Quarter of the Fiscal Year Ending March 2021

Koei Tecmo Holdings reported a robust third‑quarter performance for fiscal year 2020, with net sales rising 64.7 % to ¥42.6 billion from ¥26.7 billion in the same period of FY2019, and net income increasing 128.5 % to ¥15.3 billion. The entertainment segment drove growth, contributing 71.9 % of sales and delivering a 229.4 % increase in operating income, while amusement and real‑estate segments showed modest gains or declines. Forecasts for the full year projected sales of ¥56 billion and operating income of ¥22 billion, reflecting a 31.3 % and 56.0 % year‑on‑year increase, respectively. On the balance‑sheet side, total assets expanded from ¥147.8 billion to ¥186.5 billion, largely due to a jump in investment securities from ¥71.4 billion to ¥113.9 billion and a rise in property, plant, and equipment to ¥155.8 billion. Current assets grew modestly, while current liabilities increased slightly, driven by higher short‑term loans and accounts payable. Long‑term liabilities surged to ¥5.1 billion, largely from deferred tax obligations. Shareholders’ equity rose to ¥143.9 billion, supported by retained earnings of ¥103.2 billion and a reduction in treasury stock. The figures cover Japan‑based operations for the fiscal year ending March 31, 2020, with quarterly results compared to FY2019 and full‑year forecasts. Data derive from consolidated financial statements prepared under Japanese GAAP, reflecting a comprehensive view of the company’s operating performance and liquidity position.

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Koei Tecmo

Financial Highlights: 2nd Quarter of the Fiscal Year Ending March 2021

Financial highlights for KOEI TECMO Holdings’ second quarter of fiscal 2020 reveal a robust expansion across its core entertainment segment, with net sales rising 39.7 % year‑over‑year to ¥42.6 billion and gross profit increasing 76 % to ¥22.6 billion. Operating income surged 145.6 % to ¥14.1 billion, driven largely by the entertainment division’s 176 % jump to ¥13.4 billion, while amusement and real‑estate segments posted modest gains of 88.8 % and 33.7 %, respectively. Net income nearly doubled, reaching ¥15.3 billion (99.7 % increase), and the company projected a full‑year net sales forecast of ¥51 billion, up 19.6 % from the prior year. Balance‑sheet activity shows total assets rising to ¥160.4 billion, primarily due to a significant increase in marketable securities (from ¥337 million to ¥7.1 billion) and investment securities (to ¥87.4 billion). Current assets grew modestly, while current liabilities fell from ¥24.1 billion to ¥21.5 billion, reflecting a reduction in short‑term borrowings and trade payables. Shareholders’ equity expanded to ¥133 billion, supported by retained earnings growth and a modest decline in treasury stock. The report covers Japan‑based operations for the fiscal year ending March 2020, with quarterly data for September 30, 2020. No survey methodology is disclosed; figures derive from consolidated financial statements prepared under Japanese GAAP. Overall, the company demonstrates strong profitability and liquidity, with strategic investment in securities bolstering its asset base.

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Koei Tecmo

Financial Results: Fiscal Year Ending March 2018

Financial results for the fiscal year ending March 2018 show a record‑high profit trajectory driven by robust sales growth and expanding overseas revenue. Total sales rose 5.3 % from ¥38,926 million in FY2017 to ¥41,000 million in FY2018, while operating profit increased 2.5 % to ¥12,000 million. Ordinary profit fell slightly by 4.3 % from ¥18,293 million to ¥17,500 million, and net income declined 4.0 % from ¥13,017 million to ¥12,500 million. The company’s global footprint expanded, with overseas sales growing 4.4 % to ¥13,500 million and North American revenue up 13.1 % to ¥5,000 million; European sales increased 11.0 % to ¥3,700 million, whereas Asian revenue contracted 7.2 % to ¥4,800 million. The report highlights a strategic focus on digital marketing, community engagement, and talent development to support a three‑year expansion into the Chinese market. Key titles such as “Nioh” and “Dynasty Warriors 9” achieved strong global sales, with “Nioh” surpassing 1.9 million copies worldwide and “Dynasty Warriors 9” matching sales in Japan and Asia. The company plans to leverage high‑compatibility IPs for further penetration into U.S. and European markets, while also expanding smartphone gaming operations and IP licensing in Asia. Methodologically, the figures derive from consolidated financial statements covering all business segments—entertainment, pachislot & amusement, real estate, and others—across domestic and overseas operations. The analysis includes year‑over‑year comparisons, regional breakdowns, and unit sales data for major titles. The company’s mid‑term management plan targets a 10 % annual increase in sales and operating profit, aiming for ¥51 billion in sales and ¥17 billion in operating profit by FY2020, with a 50 % payout ratio or ¥50 per share dividend.

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Koei Tecmo

Financial Highlights: 3rd Quarter of the Fiscal Year Ending March 2016

Koei Tecmo Holdings reported a strong third‑quarter performance for fiscal year 2015, with net sales rising to ¥37.8 billion from ¥24.1 billion in the same period of FY2014, a 6.4% increase that exceeded the ¥40 billion forecast by 5.8%. Gross profit grew to ¥17.1 billion, up 7.6% from the prior year’s quarter, while operating income surged to ¥9.65 billion, a 19% rise that still fell short of the ¥10 billion target by 3.6%. Net income reached ¥9.43 billion, up 4.6% year‑on‑year and slightly below the ¥9.5 billion forecast. Segment analysis shows Game Software sales at ¥24.86 billion, a 10.8% decline from the previous year’s quarter but still above the ¥26.2 billion forecast by 5.4%. Online & Mobile sales increased 8.2% to ¥6.73 billion, outperforming the ¥7.7 billion forecast by 14.4%. Media & Rights, Pachislot & Pachinko, and Amusement Facilities all posted declines ranging from 2.8% to 20.5%, with the latter two falling below forecast expectations. Real Estate sales rose sharply by 41.5% to ¥628 million, while Other segment sales grew 11.1%. Operating income by segment mirrored these trends: Game Software contributed ¥7.8 billion, Online & Mobile added ¥1.13 billion, and Media & Rights delivered a modest ¥294 million. Pachislot & Pachinko added ¥718 million, and Amusement Facilities surprisingly posted a 609.5% increase to ¥56 million, though still below the ¥70 million forecast. Balance‑sheet data as of December 31, 2015 show total assets at ¥104.5 billion, down from ¥115.2 billion a year earlier, largely due to reductions in current assets and investment securities. Current liabilities fell to ¥5.38 billion from ¥10.95 billion, improving liquidity. Shareholders’ equity rose to ¥95.0 billion, supported by retained earnings and a modest increase in capital surplus. Overall, the company maintained solid profitability while tightening its balance sheet ahead of the next fiscal year.

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Koei Tecmo

Financial Highlights: 1st Quarter of the Fiscal Year Ending March 2016

Koei Tecmo Holdings reported a strong first‑quarter performance for the fiscal year ending March 2016, with net sales rising 7.9% to ¥37.8 billion from ¥35.2 billion the prior year, and net income increasing 49.3% to ¥9.4 billion. Gross profit grew 22.6%, while operating income surged 46.8% to ¥9.7 billion, reflecting higher profitability across most segments. Game software sales led the increase at 10.7%, followed by online & mobile (−2.9%) and media & rights (+12.5%). Pachislot & pachinko sales rose 16.8%, whereas amusement facilities declined 6.9%. Real‑estate revenue jumped 92% but was offset by a corporate & elimination loss of ¥920 million. Operating income per segment showed dramatic gains in game software (314%) and pachislot & pachinko (48%), but a sharp decline in online & mobile (-55.8%) and media & rights (-89). Forecasts for the full year target net sales of ¥40 billion (up 5.8%) and operating income of ¥10 billion (up 3.6%). On the balance‑sheet side, total assets fell from ¥115.2 billion to ¥107.1 billion, largely due to reductions in current assets and investment securities. Current liabilities dropped by 49% to ¥5.6 billion, driven by lower trade payables and accrued bonuses. Shareholders’ equity decreased modestly to ¥90.2 billion, with retained earnings at ¥51.2 billion and a slight decline in treasury stock. Net assets stood at ¥98.1 billion, reflecting modest changes in other comprehensive income items such as unrealized gains on securities and foreign‑currency adjustments. The company’s liquidity position remained solid, with cash and time deposits at ¥10.9 billion and a current‑asset to liability ratio improving from 2.47 to 3.94. Overall, the quarter demonstrated robust revenue growth and improved profitability despite segment‑specific variances, positioning Koei Tecmo for a moderately optimistic full‑year outlook.

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Koei Tecmo