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Market Analysis

PlayWay S.A. Articles of Association

The Articles of Association for PlayWay S.A. establish the legal and operational framework for the Warsaw-based joint-stock company, primarily known for its activities in computer game publishing and software development. The company is established for an indefinite duration and possesses a broad operational scope that includes publishing periodicals, manufacturing games and toys, and engaging in retail and wholesale trade of electronic equipment and software. The share capital is set at 660,000 PLN, divided into 6,600,000 bearer shares with a nominal value of 0.10 PLN each. These shares are categorized into nine series (A through I), and the document explicitly prohibits their conversion into registered shares. Each share entitles the holder to one vote at the General Meeting. Provisions are included for the increase or decrease of capital via General Meeting resolutions, requiring a three-quarters majority, as well as the potential issuance of convertible bonds. Governance is structured through three primary bodies: the General Meeting, the Supervisory Board, and the Management Board. The Management Board, consisting of one to five members serving five-year terms, handles daily operations and external representation. The Supervisory Board, composed of five members also serving five-year terms, provides oversight and assumes the role of an audit committee should the company become public. Specific voting thresholds are defined for major corporate actions, such as a two-thirds majority for significant changes to the business object or company mergers. Financial regulations dictate that the fiscal year follows the calendar year. The company is mandated to maintain a supplementary capital fund, fueled by at least 8% of annual net profits until the fund reaches one-third of the share capital. Shareholders are entitled to dividends as determined by the Ordinary General Meeting, with provisions allowing for advance dividend payments if the company maintains sufficient liquidity and recorded a profit in the previous year.

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PlayWayOct 2016

Financial

Bandai Namco Group Annual Report 2016

Bandai Namco Holdings presented its FY 2015‑16 performance to underscore an IP‑centric growth model that integrates toys, network entertainment and visual‑music production across global markets. The company recorded ¥575.5 billion in net sales, a modest 1.8 % year‑on‑year increase, while operating income fell to ¥49.6 billion (‑8 %) and profit attributable to owners reached ¥34.6 billion, supported by ¥34.6 billion of free cash flow and a cash balance of ¥169 billion. Return on equity stood at 11.2 %, and total liabilities declined to ¥131 billion, lifting net assets to ¥2.82 trillion. Segment contributions were ¥206.4 billion from Toys & Hobby, ¥320.9 billion from Network Entertainment and ¥52.0 billion from Visual‑Music, with core franchises such as Mobile Suit Gundam, Dragon Ball, Super Sentai and Yo‑kai Watch driving the bulk of revenue. The “IP axis” strategy emphasized cross‑category exploitation of established and emerging intellectual property, enabling Gundam model shipments of 14.4 million units—30 % exported—and expanding adult‑women product lines in cosmetics and apparel. Live‑event initiatives for Love Live! scaled to stadiums in Japan, China, South Korea and Taiwan, while new music‑centric IPs and VR‑ZONE concepts broadened the entertainment portfolio. The report highlighted continued penetration

market-analysis mergers-acquisitions marketing+3

Bandai NamcoSept 2016

Financial

IGG Inc. 2016 Interim Report

During the first half of 2016, the Group experienced significant financial growth and operational expansion, primarily driven by the transition to a mobile-first strategy. Revenue increased 21.4% year-over-year to US$126.0 million, with mobile gaming accounting for 97.3% of total earnings. This performance was anchored by the enduring success of *Castle Clash*, which contributed over half of the total revenue, and the blockbuster launch of *Lords Mobile*, which reached monthly earnings of US$12.0 million by August 2016. Geographically, the Group maintained a balanced global presence, with North America, Europe, and Asia each contributing approximately one-third of total revenue. To support this growth and a pipeline of ten new titles, the Group aggressively expanded its global footprint and workforce. Headcount rose to 910 employees, and new regional offices were established in Belarus, Japan, and Thailand. While gross profit rose to US$88.6 million with a stable margin of 70.3%, adjusted net income grew more modestly at 3.4% to US$27.2 million. This discrepancy was largely due to a 51.1% surge in selling and distribution expenses related to marketing new titles, alongside increased personnel costs. Despite these investments, the Group maintained a robust liquidity position with US$158.7 million in cash and no bank borrowings. Capital management during the period was characterized by significant shareholder returns, including US$30.16 million in dividend payments and US$17.62 million in share repurchases. The Group also utilized various share option and award schemes to incentivize personnel, managing millions of outstanding options across Pre-IPO and subsidiary programs. Regarding governance and compliance, the Group continued to utilize Structured Contracts (VIE arrangements) to navigate Chinese regulatory restrictions on foreign ownership. Although these contracts allow for the consolidation of Chinese entities, they represent a minimal fraction of total revenue and assets, ensuring that the Group’s broader global operations remain fundamentally independent of these specific contractual risks.

investment market-analysis mobile+1

IGGAug 2016

Financial

Summary of Main Questions and Answers at the FY2016 Fourth Quarter GREE Results Briefing

GREE’s financial performance for the fourth quarter of fiscal year 2016 was characterized by significant one-off costs and a strategic pivot toward native game development. These non-recurring expenses, which impacted the quarter’s bottom line, were primarily driven by increased advertising spend, goodwill amortization, and rental costs. The latter was framed as an upfront investment intended to reduce long-term operational overhead. While these specific costs are not expected to recur, the company anticipates a narrower operating margin in the first quarter of fiscal year 2017 due to continued aggressive investment in domestic game operations and North American business units. The strategic roadmap for fiscal year 2017 focuses on a "release blitz" of eight new native games for the Japanese market, with approximately one-fourth of these titles targeted for the first quarter. Management defines a successful "hit" as any title reaching the top ten in the App Store rankings. To achieve this, GREE is leveraging specialized internal studios: Wright Flyer Studios focuses on action RPGs and quantitative analysis, while Pokelabo concentrates on the Group-versus-Group (GvG) genre. Both studios are increasingly integrating external intellectual property (IP) to enhance market competitiveness and mitigate the risks associated with the shift from web-based to native mobile gaming. Capital allocation remains focused on long-term stability and strategic expansion. GREE intends to maintain a strong financial base to support multi-year development cycles while remaining active in the M&A market, as evidenced by the recent acquisition of ADFULLY to bolster its ad media business. Future profitability and the return to an operating margin above 20% are heavily contingent on the successful launch and sustained performance of the upcoming pipeline, as the company moves past its initial optimistic scheduling toward a more disciplined, quality-driven development process.

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GREEAug 2016

Financial

Consolidated Financial Results for the Three Months Ended June 30, 2016

This financial report details the consolidated results for mixi, Inc. during the first quarter of the fiscal year ending March 31, 2017, covering the period from April 1, 2016, to June 30, 2016. The data reflects a period of contraction compared to the previous year’s explosive growth. Net sales reached ¥47,344 million, representing a 5.5% decrease year-over-year, while operating income fell by 17.3% to ¥20,130 million. Profit attributable to owners of the parent declined by 14.9% to ¥13,578 million. Despite these decreases, the company maintained a strong financial position with an equity ratio of 85.6%, up from 73.6% at the end of the previous fiscal year. The company’s operations are divided into two primary reportable segments: the Entertainment Business and the Media Platform Business. The Entertainment Business remains the dominant revenue driver, contributing ¥44,002 million in net sales, though its segment profit decreased from the prior year. The Media Platform Business saw a slight increase in net sales to ¥3,322 million, but its segment profit dropped significantly from ¥743 million to ¥304 million. Management attributed some of the profit decline to increased selling, general, and administrative expenses, which rose to ¥21,824 million. Strategic corporate actions during and immediately following the quarter focused on shareholder returns and capital efficiency. The company executed a significant repurchase of treasury shares, totaling approximately ¥10 billion by July 2016, and subsequently resolved to retire over 2.4 million shares to improve capital efficiency. Additionally, the board approved the issuance of share remuneration-type stock options for directors to align leadership interests with shareholder value. For the full fiscal year, the company forecasts net sales of ¥218,000 million and a profit of ¥54,000 million, suggesting a cautious outlook regarding year-over-year profitability.

investment market-analysis japan+1

mixiAug 2016

Financial

FY2016 Fourth Quarter Financial Results

GREE, Inc. concluded fiscal year 2016 with net sales of ¥69.9 billion and an operating income of ¥14.2 billion, meeting internal forecasts despite a broader year-over-year decline in financial performance. The fourth quarter specifically reflected the impact of ¥1.0 billion in restructuring and one-off costs, resulting in a quarterly operating income of ¥2.2 billion. While domestic coin consumption in Japan dropped significantly from 25.0 billion to 17.5 billion coins over the year, the company successfully fortified its balance sheet. Net cash reserves grew to ¥80.2 billion, and the shareholders' equity ratio rose to 91%, supported by a ¥3.3 billion reduction in annual costs achieved through labor consolidation and lower commission fees. The strategic focus has shifted toward a transition from legacy web games to native mobile titles and diversified digital services. Although delayed releases hindered sales growth in 2016, the company is initiating a release blitz for fiscal year 2017, planning eight new native titles from Wright Flyer Studios and Pokelabo. This game-centric strategy is complemented by the expansion of third-party game operations and the Ad Media business, the latter of which saw video advertisement sales increase twentyfold. These efforts aim to establish more sustainable earnings pillars to offset the contraction of older segments. Beyond mobile gaming, investment is increasingly directed toward emerging technologies and platform services. Aggressive capital allocation continues in the virtual reality sector and home-related service platforms as part of a long-term diversification strategy. By streamlining the workforce to approximately 1,466 employees and focusing resources on the Japan Game Business, the organization seeks to leverage its high liquidity and reduced cost base to return to a growth trajectory through high-quality content production and expanded digital advertising reach.

investment market-analysis japan

GREEAug 2016

Financial

Summary of Financial Results for First Half of Fiscal Year Ending December 31, 2016

KLab Inc. reported a significant downturn in financial performance for the first half of the fiscal year ending December 31, 2016, covering the period from January 1 to June 30, 2016. Consolidated revenue fell 14.9% year-over-year to 8.88 billion yen, primarily driven by declining contributions from the title Love Live! School Idol Festival. The company’s profitability metrics showed a sharper decline, with operating income plummeting 96.7% to 51 million yen. The period concluded with an ordinary loss of 746 million yen and a net loss attributable to owners of the parent of 1.34 billion yen, a stark reversal from the 665 million yen profit recorded in the same period of 2015. The financial results were heavily impacted by non-operating and extraordinary items. The company recorded 752 million yen in foreign exchange losses due to the valuation of foreign currency assets. Furthermore, extraordinary losses reached 867 million yen, largely stemming from 757 million yen in impairment losses related to the titles Puzzle Wonderland and Age of Empires: World Domination. Despite these losses, KLab maintained a strong equity ratio of 78.4%, though total assets decreased by 1.82 billion yen compared to the end of the previous fiscal year. Looking forward, the company provided a forecast for the first three quarters of 2016, projecting revenue of 14.88 billion yen and an operating income of 1 billion yen, though it anticipates a net loss of 797 million yen for that period. A full-year forecast was withheld due to the inherent volatility of the mobile gaming industry and the difficulty of predicting hit products. Methodologically, the report follows Japanese GAAP and notes changes in accounting policies regarding business combinations and depreciation methods for certain facilities.

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KLabAug 2016

Financial

Annual Report of 11 bit studios S.A. for 2015

The 2015 fiscal year marked a transformative period for 11 bit studios S.A., characterized by record-breaking financial performance and a formal transition to International Financial Reporting Standards (IFRS). Sales revenue climbed to 22.7 million PLN, a significant increase from 15.6 million PLN in 2014, while net profit rose to 12.8 million PLN. This growth was primarily driven by the sustained global commercial success of This War of Mine across major digital distribution platforms such as Steam, Apple, and Google. The company’s liquidity position strengthened remarkably, with cash reserves increasing from 7.64 million PLN to 22.93 million PLN by year-end. The adoption of IFRS necessitated substantial balance sheet adjustments, most notably the reclassification of 4.86 million PLN in development costs from inventories to intangible assets. The company maintains a rigorous accounting policy for game production, capitalizing development costs and amortizing completed titles over 12 to 18 months, while proprietary game engines are amortized over 36 months. Despite writing off approximately 175,000 PLN for abandoned projects, the company continued heavy investment in its technological infrastructure and future pipeline, ending the year with 6.39 million PLN in intangible assets. Operating within a single business segment of game production, the company remains exposed to significant currency risk, as the majority of its revenue is generated in USD while its functional currency is the Polish złoty. Beyond operational achievements, the period saw the implementation of an employee stock option program and a management incentive scheme tied to financial targets. Following the close of the fiscal year, the company expanded its market reach with the January 2016 console launch of This War of Mine: The Little Ones, signaling a continued strategy of platform diversification and brand extension.

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11 bit studiosJun 2016

Financial

Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

Mixi, Inc. achieved exceptional financial growth during the fiscal year ended March 31, 2016, driven primarily by the expansion of its entertainment and smartphone-based commerce segments. Net sales surged 84.9% to ¥208,799 million, while profit attributable to owners rose 85.1% to ¥61,022 million. This performance significantly bolstered the company’s balance sheet, nearly doubling cash and cash equivalents to ¥126,316 million and increasing the equity ratio from 51.4% to 73.6%. While the Entertainment Business provided the vast majority of the ¥95,033 million in operating income, the company also integrated key acquisitions, including TicketCamp operator Hunza, Inc. and MUSE & Co., Ltd., to diversify its ecosystem. The period was characterized by substantial operational scaling and capital restructuring. Settlement fees nearly doubled to over ¥60 billion, and advertising expenses rose to ¥15.8 billion, reflecting the intensified costs of supporting a high-growth digital portfolio. Following the previous year’s acquisition of Hunza, Inc. for ¥11,573 million, the company established an eight-year amortization period for its goodwill while opting for a full one-time amortization of MUSE & Co.’s remaining goodwill. To optimize capital efficiency, a five-for-one stock split was executed alongside an overseas share offering and a ¥10 billion share repurchase program. Despite the record-breaking results of 2016, the outlook for the fiscal year ending March 31, 2017, remains conservative. Projections suggest a modest 4.4% increase in net sales and an anticipated 11.5% decline in net profit. Geographically, operations remain heavily concentrated in the Japanese market, which accounts for over 90% of total sales and assets. The adoption of revised Japanese accounting standards for business combinations further aligned financial reporting with modern regulatory frameworks without impacting the immediate bottom line.

investment market-analysis japan+1

mixiMay 2016

Financial

FY2016 Third Quarter Financial Results

GREE’s financial performance for the third quarter of fiscal year 2016 reflects a period of strategic transition characterized by rigorous cost management and a pivot toward native mobile game development. Net sales reached ¥16.8 billion, while operating income remained stable at ¥3.6 billion. This stability was largely achieved through a ¥1.0 billion reduction in quarterly operating costs, specifically targeting advertising expenditures and server leasing fees. Although underperforming native titles necessitated a downward revision of the full-year sales forecast to ¥70.0 billion, the company increased its net income projection to ¥11.5 billion, signaling confidence in its bottom-line efficiency and upcoming domestic releases. The operational focus has shifted toward stabilizing the core gaming business while diversifying into emerging technologies and services. While total coin consumption declined year-over-year to 22.2 billion, the expansion of the "funplex" game operation business and the global launch of titles like League of War: Mercenaries represent key growth initiatives. Beyond traditional gaming, there is a concerted effort to scale segments in home renovation, health, and advertising. Furthermore, the establishment of the GVR Fund highlights a strategic commitment to the North American virtual reality market as a long-term investment pillar. Organizational resources are heavily concentrated in the domestic Japanese market, which employs over half of the 1,516-person global workforce. The Native Game Business, including subsidiaries such as Pokelabo and Wright Flyer Studios, serves as the primary engine for human capital allocation. This internal structure supports a broader strategy of balancing established browser-based game operations with the high-growth potential of native applications and international commerce. As the company enters the final quarter of the fiscal year, its trajectory depends on the successful deployment of new domestic titles and the continued optimization of its diversified business portfolio.

market-analysis investment japan

GREEApr 2016

Financial

FY2016 Business Report

The FY2016 Business Report for mixi, Inc. details a year of record-breaking financial performance driven primarily by the company’s Entertainment Business. Covering the fiscal period from April 1, 2015, to March 31, 2016, the data reveals a significant surge in growth, with net sales reaching ¥208.799 billion, an 84.9% increase year-on-year. Operating income rose by 80.4% to ¥95.033 billion, while profit attributable to owners of the parent grew by 85.1% to ¥61.022 billion. These results significantly exceeded the company’s previously upgraded January 2016 forecasts. The primary driver of this growth was the mobile title Monster Strike, which surpassed 35 million global users by April 2016. Success was bolstered by aggressive cross-media strategies, including IP collaborations, the launch of a Monster Strike anime, and the opening of physical pop-up stores. Additionally, the February 2016 release of Marvel Tsum Tsum reached 4 million users within months. The Media Platform Business also contributed stable income through the steady performance of SNS mixi and the strategic acquisition of services like TicketCamp and the matchmaking business Diverse, Inc. Looking toward FY2017, the strategic focus shifts toward increasing the lifespan of existing services and diversifying revenue streams beyond core gaming. Plans include the overseas expansion of Marvel Tsum Tsum and further investment in the XFLAG Pictures department to monetize video content. In the Media Platform segment, the company intends to proactively create and expand long-term services in the family communication and beauty sectors. To reward shareholders for this performance, the company issued an annual dividend of ¥147 per share and authorized a treasury stock buyback of up to 3 million shares.

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mixiMar 2016

Financial

FY2016 Second Quarter Financial Results

GREE’s financial results for the second quarter of fiscal year 2016 reflect a strategic transition toward native game development and diversified service platforms. The company reported net sales of ¥18.1 billion and an operating income of ¥4.0 billion, surpassing internal targets despite a year-over-year decline in revenue. This performance was driven by successful cost-control measures, including a ¥3.2 billion reduction in fixed costs compared to the previous year, and the stabilization of coin consumption in overseas markets. The geographic scope focuses primarily on Japan, with significant operational updates regarding North American and European markets. In the native game segment, the company highlighted the success of domestic titles like Shometsu Toshi, which achieved record monthly sales following a targeted television advertising campaign. The development pipeline remains robust with 11 titles in progress, including high-profile collaborations and first-party projects scheduled for release in the second half of the fiscal year. Conversely, the legacy web game business is being managed for steady profitability through the establishment of Funplex, a specialized game operations subsidiary. Beyond gaming, there is a clear expansion into home-related services and health and fitness platforms. The Renoco online renovation service and the Lespas fitness affiliate network both reported steady growth, with the company targeting multi-billion yen sales for these segments by fiscal year 2018. Additionally, the company is investing in emerging technologies, specifically through the GREE VR Studio, to secure early market positioning. The financial outlook for the full fiscal year remains conservative, forecasting net sales of ¥72.0 billion and operating income of ¥14.0 billion. This guidance accounts for the natural decline of older web games while anticipating the gradual earnings contribution from new native titles and the continued scaling of non-gaming business lines. Management intends to maintain strict control over server and outsourcing costs while selectively investing in high-potential marketing opportunities.

market-analysis investment japan

GREE Inc.Feb 2016

Financial

Summary of Financial Results for Fiscal Year Ending December 31, 2015

KLab Inc. experienced a period of financial contraction during the fiscal year ending December 31, 2015, characterized by a 2.2% year-over-year decline in consolidated revenue to ¥20.9 billion. While core titles such as Love Live! School Idol Festival and Tales of Asteria maintained strong performance, net income plummeted by 60.9% to ¥700.5 million. This sharp decline in profitability was primarily driven by external financial pressures, including foreign exchange losses and derivative valuation losses, alongside a ¥328 million impairment loss on software assets. Consequently, net income per share fell from ¥52.15 to ¥19.26, although net assets per share saw a marginal increase to ¥269.26 due to a higher volume of common shares. The Japanese market remains the primary driver of business activity, accounting for over 90% of total revenue, with distribution heavily concentrated through Apple Inc. and Google Inc. platforms. To mitigate future volatility and address a forecasted loss for the first quarter of 2016, the strategic focus has shifted toward a more flexible cost structure. This involves transitioning development toward variable costs by increasing reliance on outsourcing and expanding publishing partnerships. Future growth initiatives center on the establishment of dedicated research and development units tasked with exploring new technologies and the implementation of rigorous safety guidelines to bolster consumer trust in mobile online games. While the unamortized balance of goodwill and impairment losses on fixed assets decreased compared to the previous year, the overall fiscal outlook remains cautious as the organization pivots its operational model to stabilize long-term earnings in a competitive mobile landscape.

investment market-analysis japan+1

KLabFeb 2016

Legal

11 bit studios S.A. Corporate Governance Compliance Statement (WSE Best Practices 2016)

11 bit studios S.A. demonstrates a high level of alignment with the corporate governance standards established for the Polish capital market, though it maintains specific, intentional deviations based on cost-benefit analyses and strategic priorities. The company’s governance framework emphasizes a clear division of responsibilities between the Management and Supervisory Boards, prioritizing transparency in investor relations and strict adherence to internal audit and risk management protocols. While the company supports diversity and independence within its leadership structures, it currently opts out of several technical and linguistic recommendations, such as providing video transmissions of general meetings or maintaining a comprehensive English-language website, citing high implementation costs and a lack of significant shareholder demand. Shareholder relations are characterized by a focus on long-term growth over immediate capital distribution, as evidenced by a five-year suspension of dividend payments to fund strategic investments. Although the company facilitates shareholder participation through traditional means, it rejects the implementation of real-time electronic voting or bilateral communication during general meetings. Furthermore, while conflict-of-interest procedures and oversight of related-party transactions remain robust, the company does not fully comply with formal remuneration reporting standards. It has declined to establish a dedicated remuneration committee or a comprehensive remuneration policy report, choosing instead to provide only partial disclosures within its periodic activity reports. The scope of these governance practices reflects the company’s status as a listed entity on the Warsaw Stock Exchange during the 2016 fiscal period. The overall strategy balances the necessity of regulatory compliance with the practicalities of a growth-oriented business model. By maintaining rigorous internal controls and supervisory oversight while bypassing certain non-mandatory technical recommendations, the company aims to protect corporate interests and ensure operational efficiency without incurring what it deems unnecessary administrative expenses.

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11 bit studiosJan 2016

Financial

Half-Yearly Report and Trading Update

Games Workshop maintained a stable pre-tax profit of £6.3 million for the six months ending November 29, 2015, despite a 2.2% decline in reported revenue to £55.3 million. While constant currency sales saw a marginal increase of 0.7% and licensing royalties doubled to £1.5 million, core operating profit decreased by £0.8 million. This decline was primarily driven by unfavorable exchange rate fluctuations and increased capital investment in retail infrastructure. Performance across geographic segments remained mixed, with growth in Trade and Mail Order channels offset by a notable decline in Retail sales, particularly within Continental Europe. The financial position remains supported by a profit of £4.78 million attributable to owners and a slight increase in basic earnings per share to 14.9p. Net cash from operating activities rose to £8.57 million, though total cash and cash equivalents decreased to £7.8 million following the distribution of £6.4 million in dividends. Significant investment in intangible assets continued, with £3.57 million in new additions bringing the net book value to £9.41 million, while contracted capital expenditure commitments were reduced to £867,000. Despite the stable half-year results, a cautious outlook prevails following disappointing sales figures in December. Projections indicate that full-year pre-tax profit is unlikely to exceed £16 million. While the company continues to prioritize shareholder returns and operational investment, the immediate future is tempered by the volatility of the seasonal Christmas peak and the ongoing challenges of maintaining retail momentum in international markets.

investment market-analysis uk

Games Workshop GroupJan 2016

Financial

Fiscal Year Ending March 2017: 1st Half Financial Results

Koei Tecmo Holdings reports record-high sales for the first half of the fiscal year ending March 2017, driven by strong performances in the entertainment segment and successful intellectual property (IP) expansions. Net sales reached 16.58 billion yen, a 9.3% increase year-over-year, while operating profit rose 11% to 2.75 billion yen. Despite these gains, ordinary profit and net income saw declines of 13.3% and 6.8% respectively, primarily due to the timing of game releases and fluctuations in non-operating expenses. The entertainment division remains the primary revenue driver, contributing 14.6 billion yen to total sales. Geographically, Japan continues to be the dominant market, accounting for nearly 75% of sales, though Asian markets showed significant growth. Key titles such as Toukiden 2, Attack on Titan, and Dragon Quest Heroes II supported the software lineup, while major social games maintained solid performance. The company is increasingly shifting toward a digital-first business model, with digital sales proportions rising steadily to improve profit margins. Looking ahead, the management strategy focuses on a brand-based organizational structure to maximize IP value through multi-platform expansion, global tie-ups, and collaborations. Notable upcoming projects include Nioh, new entries in the Atelier and Samurai Warriors series, and a push into PlayStation VR content. For the full fiscal year 2016, the company maintains a positive outlook, projecting total sales of 42 billion yen and aiming for its seventh consecutive year of profit growth. The financial plan also includes a dividend increase to 63.6 yen, reflecting confidence in the long-term strategy of IP creation and expansion across smartphones, consoles, and emerging media.

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Koei TecmoJan 2016

Financial

Financial Highlights for the Fiscal Year Ending March 2016 (FY2015)

Koei Tecmo Holdings achieved record financial performance for the fiscal year ending March 31, 2016, characterized by steady growth in net sales and significant double-digit increases in profitability. Net sales rose to 38.3 billion yen, a 1.4% increase over the previous year, while operating income grew by 14.7% to reach 11.1 billion yen. Net income saw the most substantial gain, rising 15.1% to 10.9 billion yen. These results reflect a successful transition toward higher-margin digital and software segments, with forecasts for the 2016 fiscal year predicting continued expansion across all major financial metrics. The game software segment remains the primary driver of the company’s portfolio, contributing 25.2 billion yen in sales and 8.7 billion yen in operating income. While the online and mobile segment represents a smaller portion of total revenue at 7.1 billion yen, it demonstrated the highest growth potential with a 32.2% year-over-year increase in operating income. Conversely, the amusement facilities and pachislot/pachinko segments experienced revenue declines of 18.8% and 11.5% respectively, though the amusement facilities division saw a dramatic recovery in profitability from a low baseline. The consolidated balance sheet as of March 2016 shows a total asset value of 110.9 billion yen, a slight decrease from the prior year primarily due to fluctuations in the market value of investment securities. Despite this, the company maintains a robust equity position with retained earnings growing to 60 billion yen. The financial structure remains stable, with total liabilities decreasing to 12.2 billion yen. This data covers the Japanese gaming and multimedia conglomerate’s global operations for the twelve-month period concluding in early 2016, utilizing audited consolidated financial statements to track performance across its diverse entertainment and real estate holdings.

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Koei TecmoJan 2016

Whitepaper

How to Enable Digital Growth in Europe

HOW TO Game developer studios in Europe 4 What EGDF does 5 ENABLE Number of people working in game development 7 Turnover of the national game development ecosystems 9 DIGITAL The shorter the value chain, the more growth in Europe 10 Games are the driving force of the digital revolution 11 Content drives innovation 12 GROWTH Creative E...

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European Games Developer FederationJan 2016

Financial

Fiscal Year Ending March 2017 Financial Results

Koei Tecmo Holdings presents its financial results for the fiscal year ending March 31, 2017, alongside its strategic outlook for the 2018 fiscal year. The primary thesis emphasizes that an increasing proportion of digital business sales is a fundamental driver of corporate profitability. While total sales for FY2016 saw a slight year-over-year decline of 3.4% to 37,034 million yen, net income rose by 7.1% to 11,624 million yen. This growth in net profit despite lower revenue is attributed to the higher margins associated with digital distribution and the success of key intellectual properties. The data covers global operations, with Japan remaining the largest market at 73.1% of sales. However, overseas unit sales grew to 51.7% of the total volume, led by strong performance in North America and Asia. Key product milestones include the success of Nioh, which surpassed one million copies worldwide, and the strong performance of mobile titles like Dissidia Final Fantasy Opera Omnia and Dynasty Warriors Unleashed, the latter of which exceeded three million downloads. The entertainment segment remains the dominant revenue contributor, supported by smaller contributions from pachislot, amusement facilities, and real estate. Looking forward to FY2017, the strategy focuses on IP creation and multi-platform expansion, including support for the Nintendo Switch and PlayStation VR. The company aims for record-high profits with a sales target of 42,000 million yen. To mitigate risks associated with recent game delays, management is implementing stricter quality and delivery controls. The plan also includes the launch of "midas," a new brand focused on mobile development by younger creators, and increased collaborative efforts across different media and industries to maximize the value of existing franchises.

investment market-analysis global

Koei TecmoJan 2016

Report

TIGA Genre Report 2016

Breakdown of platform releases Examples from different genres TIGA represents developers, digital publishers, service companies and education providers and is the trade association for the video games industry. Our core purpose is to strengthen the games development and digital publishing sector. We achieve this by campaigning for the industry in the corridors of power, championing the industry in the media and helping our members commercially.

market-analysis uk game-development

TIGAJan 2016