Koei Tecmo

Game Co.

212 documents

Japanese developer/publisher. Dynasty Warriors, Nioh, Dead or Alive, Atelier, Romance of the Three Kingdoms.

Documents

Financial

Financial Results for the First Half of the Fiscal Year Ending March 2025

Koei Tecmo experienced a transitional first half for the fiscal year ending March 2025, characterized by an 11.4% decline in sales to 35,197 million yen and a 23.1% drop in operating profit. This downturn resulted from a sparse release schedule compared to the previous year, though the impact was mitigated by robust back-catalog performance and disciplined cost management regarding advertising and outsourcing. Despite these short-term headwinds, the organization exceeded initial profit forecasts and remains on track to meet full-year targets, anticipating a significant recovery driven by a dense schedule of major releases in the second half of the fiscal year. The long-term strategic objective is to secure a position among the top ten global gaming companies by maintaining a 30% operating profit margin and achieving an operating income target of 40 billion yen. This growth plan centers on the development of AAA-class titles, with a specific focus on establishing new intellectual properties capable of selling five million units. To facilitate this, a dedicated AAA Studio has been established alongside seven distinct development departments. These teams utilize the proprietary Katana Engine to enhance graphical fidelity and production efficiency through integrated AI and automation, ensuring a steady pipeline of self-published hits across console, PC, and mobile platforms. Global expansion remains a primary focus, with strengthened publishing infrastructures in North America, Europe, and China, alongside targeted entry into emerging markets in Southeast Asia and India. While domestic Japanese revenue is expected to soften, international growth is projected to drive a 6.4% increase in annual sales to 90 billion yen. To sustain this momentum, the organization is aggressively investing in human capital, planning to hire over 200 employees in the current fiscal year while implementing industry-leading salary increases and expanding corporate infrastructure. This multi-layered revenue strategy balances high-margin IP licensing with large-scale global development to ensure long-term financial stability and shareholder returns.

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Koei TecmoOct 2024

Financial

Consolidated Financial Results for the Three Months Ended June 30, 2024

This financial report details the consolidated results for Koei Tecmo Holdings Co., Ltd. for the first quarter of the fiscal year ending March 31, 2025, covering the period from April 1 to June 30, 2024. The primary purpose of the document is to provide shareholders and the public with an update on the company’s financial health and progress toward its Third Medium-Term Management Plan, which focuses on the management policy of creating and developing global intellectual property. Financial performance for the quarter was mixed. Net sales reached 17.6 billion yen, a 3.8% decrease year-on-year, while operating profit fell 23.8% to 5.7 billion yen. This decline was attributed to a lack of new mobile title launches compared to the previous year and increased costs associated with in-house mobile operations. Conversely, ordinary profit rose 27.3% to 18.7 billion yen, and profit attributable to owners of the parent increased 29.2% to 13.6 billion yen, both reaching record highs for a first quarter. These gains were significantly bolstered by non-operating income, including 5.8 billion yen from the valuation of derivatives and 4.9 billion yen in interest income. The entertainment segment remains the company's core driver, contributing 16.5 billion yen in sales. Key activities included repeat sales of Rise of the Ronin and the continued performance of mobile titles like Nobunaga’s Ambition: Hadou and the licensed Three Kingdoms Tactics, which surpassed 100 million global downloads. Looking ahead, the company is focusing on its "AAA Studio" to ensure a continuous pipeline of large-scale titles, such as the upcoming Dynasty Warriors: Origins. For the full fiscal year, the company forecasts net sales of 90 billion yen and a profit of 30 billion yen, maintaining a neutral but growth-oriented outlook despite short-term fluctuations in operating income.

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Koei TecmoJul 2024

Financial

Financial Results for the Fiscal Year Ending March 2024

Koei Tecmo achieved record-high sales of 84.6 billion yen for the fiscal year ending March 2024, primarily driven by a 40.6% surge in the mobile and online sectors. While net profit rose by 9.2% due to record-level non-operating income and successful financial management, operating profit declined by 27.2% to 28.5 billion yen. This contraction reflects a strategic shift from high-margin royalty partnerships toward in-house publishing, which necessitated increased expenditures in advertising, outsourcing, and employment. The company expanded its workforce by hiring 158 new graduates and raising base pay, a trend set to continue as the firm scales its internal development capabilities. The transition toward large-scale, global intellectual properties reached a milestone with the launch of Rise of the Ronin, the company’s first AAA open-world title. Although some console releases underperformed initial expectations, Rise of the Ronin surpassed the early sales pace of the Nioh series and received strong user feedback. To sustain this momentum, a dedicated AAA Studio has been established to develop major titles independently of traditional brand frameworks. This organizational change aims to professionalize AAA development management, ensuring stricter adherence to quality standards, delivery timelines, and budget constraints. Looking toward the fiscal year ending March 2025, the strategy focuses on returning to an upward trend in operating profit through a balanced portfolio of console and mobile titles. Management is targeting 7.6 million unit sales and 30 billion yen in operating profit while integrating generative AI into production workflows to optimize costs. Furthermore, the company is prioritizing its transition to the Tokyo Stock Exchange Prime Market by improving its tradable share ratio. These financial and structural adjustments serve as the foundation for the upcoming 4th Mid-Term Management Plan, which seeks to establish the firm as a global leader in the gaming industry.

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Koei TecmoApr 2024

Financial

Consolidated Financial Results for the Year Ended March 31, 2024

Koei Tecmo Holdings achieved a 7.9% increase in net sales to ¥84.6 billion for the fiscal year ended March 31, 2024, reflecting a period of steady top-line growth. While profit attributable to owners rose 9.2% to ¥33.8 billion, the company experienced a notable 27.2% decline in operating profit, which fell to ¥28.5 billion. This contraction in operating margins was primarily driven by rising selling and administrative expenses. However, ordinary profit remained resilient, growing 14.6% to ¥45.7 billion due to substantial non-operating gains derived from investment securities and derivative valuations. The financial position of the organization strengthened considerably throughout the year, with total assets expanding to ¥245.8 billion and net assets reaching ¥175.6 billion. Cash flow from operating activities remained robust at ¥36.6 billion, supported by efficient trade receivable collections and higher pre-tax profits. These inflows effectively balanced a ¥24.9 billion net outflow in investing activities, largely attributed to the strategic acquisition of investment securities. Despite distributing ¥15.7 billion in dividends, the company maintained a stable liquidity position with ¥10.5 billion in cash and cash equivalents at the close of the period. Looking toward the fiscal year ending March 31, 2025, the outlook suggests continued revenue expansion alongside tightening profitability. Net sales are projected to grow by 6.4%, yet profit attributable to owners is expected to decline by 11.2%. This forecast indicates a transitionary phase where increased market activity and sales volume may be offset by shifting investment returns or continued pressure on operating costs. The overall trajectory emphasizes a shift toward leveraging a strong balance sheet and non-operating income to navigate fluctuations in core gaming profitability.

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Koei TecmoApr 2024

Financial

Koei Tecmo Holdings Financial Summary: FY2024 Q3

This financial summary details the consolidated fiscal performance of Koei Tecmo Holdings for the third quarter of FY2024, ending December 31, 2023. The data reflects a period of stabilizing revenues compared to the previous fiscal year, with third-quarter sales reaching 17.37 billion yen. While operating profit for the quarter stood at 4.42 billion yen, the company experienced a significant boost in ordinary profit, which rose to 12.14 billion yen due to 7.72 billion yen in non-operating income. This follows a volatile second quarter where non-operating losses had previously impacted the bottom line. The Entertainment segment remains the primary driver of the business, contributing 16.03 billion yen to quarterly sales. Within this segment, the balance between Console/PC and Online/Mobile remains significant; Console/PC sales reached 7.3 billion yen, while Online/Mobile—driven almost entirely by mobile titles—contributed 8.63 billion yen. Geographically, Japan continues to be the largest market, accounting for 8.99 billion yen in quarterly sales, followed by Asia (4.71 billion yen) and North America (2.99 billion yen). Key operational metrics indicate a strong shift toward digital distribution, with the digital ratio for software sales reaching 72.9% in the third quarter. Total software sales units for the quarter were 1.68 million copies, contributing to a nine-month cumulative total of 4.34 million units. Despite a slight decrease in total headcount to 2,713 employees, employment costs have risen steadily, reflecting a broader industry trend of increasing fixed costs. The company maintains a full-year forecast of 90 billion yen in sales and 30 billion yen in operating profit, suggesting an expectation of a strong fourth-quarter performance to meet these annual targets.

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Koei TecmoMar 2024

Financial

Consolidated Financial Results for the Nine Months Ended December 31, 2023

Koei Tecmo Holdings Co., Ltd. reported significant growth in its consolidated financial results for the nine months ended December 31, 2023. Net sales reached ¥61,136 million, a 23.7% increase compared to the same period in the previous year. While operating profit saw a decline of 11.7% to ¥20,316 million, ordinary profit surged by 100.4% to ¥33,825 million. Profit attributable to owners of the parent also saw a substantial rise of 80.2%, totaling ¥24,283 million. The divergence between operating and ordinary profit is largely attributed to non-operating activities, specifically gains from the sale of investment securities and the valuation of derivatives. Non-operating income rose to ¥29,341 million, bolstered by ¥9,407 million in investment security sales and ¥8,127 million in derivative valuation gains. Conversely, non-operating expenses decreased from the prior year, despite losses on the redemption of securities and sales of investments. The company’s financial position remains robust, with total assets increasing to ¥244,844 million as of December 31, 2023, up from ¥210,889 million at the end of the previous fiscal year. This growth was driven by a significant increase in current assets, particularly securities and cash. However, the capital adequacy ratio saw a slight decrease from 67.4% to 64.1%, influenced by the reclassification of convertible bonds to current liabilities. Looking ahead to the full fiscal year ending March 31, 2024, the company maintains its forecast of ¥95,000 million in net sales and ¥31,000 million in profit attributable to owners of the parent. These results reflect a period of strong top-line growth and effective asset management, despite rising selling, general, and administrative expenses which impacted operating margins. The data covers the company's global operations under Japanese GAAP.

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Koei TecmoJan 2024

Financial

Financial Results for the Third Quarter of the Fiscal Year Ending March 2024

Koei Tecmo Holdings reported its financial results for the first nine months of the fiscal year ending March 2024, highlighting a period of significant revenue growth driven by the online and mobile sectors. Net sales reached 61,136 million yen, a 23.7% increase year-over-year. While operating profit saw an 11.7% decline to 20,316 million yen due to rising platform fees, advertising costs, and royalty expenses associated with new titles, ordinary profit doubled to 33,825 million yen. This surge in ordinary profit was primarily attributed to non-operating income, including gains from the disposal of marketable securities. The entertainment segment remains the primary business driver, with mobile games achieving record-high sales. Key contributors included the first-anniversary events for Nobunaga’s Ambition: Hadou and the successful launch of Atelier Resleriana, which surpassed 3 million downloads. In contrast, the console sector saw a decline in unit sales compared to the previous year, totaling 5.07 million units globally. However, digital sales reached a record 74.2% of total units sold. Geographically, Japan accounted for 61.1% of total sales, reflecting the strong domestic performance of new mobile titles, while overseas markets represented 38.9% of revenue. Strategic initiatives for the final quarter include the global launch of the AAA action RPG Rise of the Ronin in March 2024 and the expansion of mobile titles to international markets and Steam. The company also announced a capital and business alliance with Akatsuki Inc., acquiring a 7.97% stake to strengthen collaborative development. Despite fluctuations in operating costs and the global financial environment, the company maintained its full-year forecast, citing a robust pipeline of upcoming releases and stable performance across its amusement and real estate segments.

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KOEI TECMO HOLDINGS CO., LTD.Jan 2024

Financial

Consolidated Financial Results Data Appendix: FY2024

This financial data appendix provides a comprehensive quantitative overview of Koei Tecmo’s performance for the fiscal year ending in 2024, alongside historical data from FY2022 and FY2023 and forecasts for FY2025. The data tracks the company’s primary business segments, including Entertainment, Amusement, Real Estate, and other minor operations, with a heavy emphasis on the Entertainment division’s console, PC, and mobile gaming performance. Financial results for FY2024 show consolidated sales of 83,150 million yen, a slight decrease from the 84,584 million yen recorded in FY2023. Despite this dip in revenue, operating profit rose to 32,119 million yen, representing a healthy 39% profit ratio. Net profit reached 37,628 million yen, bolstered by significant non-operating income. Geographically, Japan remains the largest market, accounting for 49,220 million yen in sales, while the overseas ratio stood at 40.8%. North America and Europe showed growth in the latter half of the year, while Asian markets excluding Japan saw a decline. The Entertainment segment remains the primary driver of value, contributing 78,078 million yen to total sales. Within this segment, the mobile and online categories generated 37,560 million yen, while console and PC gaming accounted for 39,520 million yen. Digital sales continue to dominate the distribution model, reaching a 78.1% digital ratio for the full year. Total software sales units for FY2024 reached 7.63 million copies, with a forecast to exceed 9 million units in FY2025. Looking forward, the company projects growth for FY2025, with an initial sales forecast of 92,000 million yen and an operating profit target of 31,000 million yen. This growth is supported by a robust title lineup including Romance of the Three Kingdoms 8 Remake, Dynasty Warriors: Origins, and Atelier Yumia. To support these goals, the company has steadily increased its headcount to 2,684 employees and plans for further expansion in the coming year.

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Koei TecmoJan 2024

Financial

Integrated Report 2024

Koei Tecmo’s 2025 integrated analysis presents a comprehensive view of the company’s pursuit of the “world’s No. 1 digital‑entertainment” position, driven by a “Creativity & Contribution” philosophy, an IP‑centric brand architecture spanning six studios, and a multi‑layered profit model. The narrative tracks financial evolution from FY 2009, when net sales were ¥3.3 billion, to FY 2023, where they more than doubled to ¥7.1 billion and operating profit surged to ¥12.0 billion, culminating in a FY 2023 record‑high ¥84.5 billion in net sales (+7.9 % YoY) and a 49.9 % operating‑profit ratio, albeit with a 27.2 % profit decline to ¥28.4 billion. Flagship franchises such as “Fire Emblem Warriors” (7.5 million downloads) and the “Atelier” series (over 100 million copies sold) continue to generate high‑margin royalties and collaborative titles that approach 100 % licensing profitability. Strategic priorities emphasize scaling development capacity from roughly 2,000 to 5,000 staff, expanding open‑world and high‑CG capabilities through the Katana Engine™, and launching new global IPs targeting 5‑10 million unit sales per title. The firm leverages a senior‑led project‑management framework and rigorous quality‑assurance cycles that monitor timelines, budgets, and a target 30 % operating‑profit ratio, while recent releases such as “Rise of the Ronin” illustrate the benefits of extended development cycles and cross‑cultural design. Human‑capital initiatives aim to diversify talent, raising female managerial representation to 20 % and foreign senior hires to 15 % by FY 2025, supported by a structured “creator‑businessperson” development program. Governance has been reinforced through a holding‑company model, an expanded board with independent directors, and compensation schemes aligned to shareholder interests. Sustainability reporting highlights FY 2023 greenhouse‑gas emissions of 56,987 t CO₂e

market-analysis mergers-acquisitions employment+1

Koei TecmoJan 2024

Financial

Financial Results for the Q3 of the Fiscal Year Ending March 2025

Koei Tecmo’s financial performance through the third quarter of the fiscal year ending March 2025 reflects a transitional period characterized by a 14.0% year-over-year decline in sales to ¥52,570 million and a 25.8% drop in operating profit. These results stem from a light release schedule for console titles and a reliance on existing mobile software. However, net profit rose 3.6% to ¥25,161 million, supported by disciplined cost management in advertising and outsourcing. The company maintains its full-year guidance of ¥90 billion in sales and ¥30 billion in operating profit, anticipating a significant recovery in the fourth quarter driven by a robust pipeline of more than five new titles, including Dynasty Warriors: Origins. The long-term strategy focuses on achieving a ¥40 billion operating profit target by establishing a multi-layered portfolio across console, PC, and mobile platforms. To secure a position among the top ten global digital entertainment companies, a dedicated AAA Studio has been formed to consistently produce large-scale hits, with two major AAA titles planned for the next three years. This expansion is supported by an aggressive recruitment drive to add 200 employees annually and the continuous refinement of the proprietary Katana Engine to ensure high-quality graphical standards across all genres. Operational efficiency is being bolstered through the integration of artificial intelligence for debugging, asset production, and game balancing. By subdividing development milestones and shifting to a bond-centric investment portfolio, the company maintains high financial stability and consistent non-operating income. These fiscal strengths support a commitment to shareholder returns, including a 50% dividend payout ratio, while funding strategic capital expenditures such as employee housing and potential office acquisitions to sustain future growth.

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Koei TecmoJan 2024

Financial

Financial Results for the FY 2024 and 4th Mid-term Management Plan

Koei Tecmo concluded fiscal year 2024 with a net profit of 37.6 billion yen, representing an 11.4% year-over-year increase that surpassed initial expectations. While total sales experienced a marginal dip of 1.7%, the Console and PC segment demonstrated significant strength, characterized by a 57% surge in digital download sales. This performance effectively mitigated an 11 billion yen decline in mobile revenue. To sustain this momentum and meet Tokyo Stock Exchange Prime Market standards, the organization is undergoing a leadership transition in June 2025, appointing Hisashi Koinuma as President and CEO while restructuring governance to include a majority of external directors. The fourth mid-term management plan, spanning fiscal years 2025 through 2027, establishes a strategic roadmap to achieve a cumulative operating profit exceeding 100 billion yen and a consistent 30% profit margin. The long-term objective is to secure a position among the top ten global digital entertainment companies. To reach these targets, the strategy prioritizes the annual release of AAA-class titles and the development of new intellectual properties capable of selling five million units. Development investment is heavily weighted toward the Console and PC sector, which receives 65% of allocated funding, while global marketing efforts will expand into emerging regions such as the Middle East and North Africa. Financial forecasts for fiscal year 2025 project sales growth to 92 billion yen, supported by a 25.3% increase in overseas revenue and a robust pipeline that includes titles for the successor to the Nintendo Switch. Although sales are expected to rise by over 10%, operating profit is forecasted to remain stable at 31 billion yen as the company reinvests in human capital and development infrastructure. This growth strategy is underpinned by the enduring performance of core franchises like Dynasty Warriors and Nobunaga’s Ambition, alongside a commitment to high shareholder returns through a 50% total payout ratio and agile fund management.

market-analysis investment japan

Koei TecmoJan 2024

Financial

Financial Results for the First Half of the Fiscal Year Ending March 2024

Koei Tecmo achieved record-high sales of ¥39.7 billion during the first half of the fiscal year ending March 2024, representing a 14.3% year-on-year increase. This growth was primarily fueled by the successful launch of Fate/Samurai Remnant and record performance within the mobile gaming segment, specifically through titles like Atelier Resleriana. While operating profit experienced a 24.4% decline to ¥13.8 billion due to increased labor and subcontracting expenses, ordinary profit rose significantly by 31.3% to ¥23.2 billion. These results reflect a robust financial position as the company pursues its Third Medium-Term Management Plan, which targets ¥100 billion in annual sales and ¥40 billion in operating profit by the end of fiscal year 2024. The strategic focus remains on a multi-layered revenue cycle that prioritizes global intellectual property expansion and high-performance smartphone titles. Projections for the full fiscal year anticipate ¥95 billion in net sales, supported by a 37.9% increase in the Japanese market and a 22.6% rise in overseas unit sales. To sustain this momentum, the company is leveraging its proprietary Katana Engine and a disciplined project management framework to ensure consistent profitability across multi-platform releases. Key upcoming titles, such as Rise of the Ronin, are central to the objective of establishing new global franchises capable of selling five million units. Long-term stability is anchored in a combination of IP licensing and internal human capital development. The company has implemented eight consecutive years of base salary increases to foster innovation and maintain a competitive edge in technical proficiency. By balancing established franchises like Romance of the Three Kingdoms and Warriors with new collaborations and digital-first strategies, the organization aims to mitigate development risks while maximizing the lifecycle of its core assets across global markets.

investment market-analysis japan

Koei TecmoOct 2023