Koei Tecmo

Game Co.

212 documents

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

Documents

Financial

Consolidated Financial Results for the Six Months Ended September 30, 2023

Koei Tecmo Holdings Co., Ltd. reported its consolidated financial results for the first half of the fiscal year ending March 31, 2024, covering the period from April 1, 2023, to September 30, 2023. The data reflects a period of significant growth in top-line revenue and net profitability, despite a contraction in operating profit. Net sales rose 14.3% year-over-year to ¥39.7 billion, while profit attributable to owners of the parent increased by 23.1% to ¥16.8 billion. The divergence between operating and ordinary profit is a primary feature of this period. While operating profit fell 24.4% to ¥13.8 billion due to rising costs of sales and administrative expenses, ordinary profit surged 31.3% to ¥23.2 billion. This boost was driven by substantial non-operating income, specifically a ¥7.3 billion gain on the valuation of derivatives and ¥6.7 billion from the sale of investment securities. These financial activities offset significant non-operating expenses, including ¥8.6 billion in losses on the sale of investment securities. Geographically focused on the Japanese market with a listing on the Tokyo Stock Exchange, the company maintains a strong financial position with total assets increasing to ¥234.1 billion. The capital adequacy ratio remains robust at 64.1%. Looking ahead, the full-year forecast remains unchanged, with expectations for net sales to reach ¥95 billion, representing a 21.1% annual increase. The company anticipates maintaining a stable dividend of ¥50 per share, reflecting confidence in its long-term financial stability and the continued performance of its core gaming and investment segments.

investment market-analysis japan

Koei TecmoOct 2023

Financial

Consolidated Financial Results for the Three Months Ended June 30, 2023

This financial report details the consolidated results for Koei Tecmo Holdings Co., Ltd. for the first quarter of the fiscal year ending March 31, 2024, covering the period from April 1, 2023, to June 30, 2023. The findings reveal a complex fiscal performance characterized by a slight decline in top-line revenue alongside significant growth in bottom-line profitability, driven largely by non-operating activities. Net sales for the quarter reached ¥18.3 billion, representing a 1.9% decrease compared to the same period in the previous year. Operating profit saw a more substantial decline of 35.6%, falling to ¥7.5 billion as the cost of sales nearly doubled from ¥3.3 billion to ¥6.3 billion. Despite these operational headwinds, ordinary profit surged by 61.6% to ¥14.7 billion, and profit attributable to owners of the parent rose by 56.3% to ¥10.6 billion. This discrepancy is explained by strong non-operating income, specifically a ¥4.87 billion gain on the sale of investment securities and a ¥2.84 billion gain on the valuation of derivatives. The company’s financial position remains robust, with total assets increasing to ¥232.8 billion from ¥210.9 billion at the end of the previous fiscal year. This growth was supported by a significant rise in cash and deposits, which climbed to ¥30.5 billion. While the capital adequacy ratio dipped slightly from 67.4% to 61.7%, net assets per share increased to ¥455.43. Looking ahead, the full-year forecast remains unchanged, with the company projecting net sales of ¥95 billion, a 21.1% increase over the prior year. While operating profit is expected to contract slightly by 4.2% for the full year, ordinary profit and net income are forecasted to remain stable. These results reflect a period of transition where investment activities and financial management have significantly bolstered the company's net earnings despite rising operational costs.

investment market-analysis japan+1

Koei TecmoAug 2023

Financial

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

Koei Tecmo Holdings reported financial results for the first quarter of the fiscal year ending March 2024, revealing a period of transition characterized by a shift toward mobile dominance and strategic investment. Total sales for the quarter reached 18.3 billion yen, a slight 1.9% decrease year-over-year. While operating profit fell by 35.6% to 7.5 billion yen due to higher employment and subcontracting costs, ordinary profit rose significantly by 61.6% to 14.7 billion yen, bolstered by non-operating income from the sale of marketable securities. The entertainment segment remains the primary revenue driver, though its internal composition shifted during the period. The console sector experienced a 35.3% decline in sales and a 52.1% drop in unit volume, largely because the quarter lacked new major releases and relied on repeat sales of existing titles. Conversely, the online and mobile sector achieved record quarterly sales of 10.9 billion yen, a 31.7% increase driven by the successful launch of Dragon Quest Champions and strong performance in smartphone and social gaming. Digital sales now account for 87.3% of total entertainment revenue, up from 74.4% in the previous year. Geographically, Japan remains the strongest market, growing 16.9% to represent 58.1% of total sales. In contrast, overseas revenue declined across North America, Europe, and Asia. Looking ahead, the company maintains a positive full-year outlook with a sales target of 95 billion yen. Growth is expected to be driven by a robust pipeline of upcoming releases, including Atelier Marie Remake, Nobunaga’s Ambition: Awakening, and Fate/Samurai Remnant, alongside the continued expansion of the mobile portfolio with titles like Nobunaga’s Ambition: Shutsujin.

market-analysis global mobile+1

Koei TecmoJul 2023

Financial

Consolidated Financial Results for the Year Ended March 31, 2023

Koei Tecmo Holdings demonstrated robust operational growth during the fiscal year ended March 31, 2023, characterized by a 7.8% increase in net sales to ¥78,417 million and a 13.3% rise in operating profit to ¥39,133 million. This performance reflects a strengthening of core business activities despite a broader decline in net income. Profit attributable to owners fell by 12.5% to ¥30,935 million, a downturn primarily driven by non-operating factors, including a significant reduction in gains from investment securities and a ¥13,976 million loss on the redemption of securities. The financial position remains resilient with total net assets increasing to ¥142.7 billion and a capital adequacy ratio of 67.3%. Cash flow dynamics shifted significantly during the period, resulting in a net decrease in cash and cash equivalents of ¥7,959 million. While operating activities generated a healthy inflow of ¥29.7 billion, this was offset by substantial financing and investing outflows. Notable expenditures included ¥81.7 billion in investment security purchases, ¥28,000 million in short-term borrowing repayments, and ¥17.0 billion in dividend distributions. Looking toward the fiscal year ending March 31, 2024, the outlook remains aggressive with a projected revenue increase of 21.1% to ¥95,000 million. Management intends to maintain a stable shareholder return policy with a dividend payout ratio of approximately 50%. These results indicate a strategic transition where strong organic growth in the gaming sector is being balanced against volatile non-operating investment returns and a proactive reduction of debt obligations.

investment mergers-acquisitions japan

Koei TecmoApr 2023

Financial

Financial Results for the Third Quarter of the Fiscal Year Ending March 2023

Koei Tecmo Holdings presented its financial results for the third quarter of the fiscal year ending March 2023, revealing a period of transition characterized by a year-over-year decline in sales and profits. Net sales reached 49.4 billion yen, a 10.6% decrease from the previous year, while net profit fell 52.4% to 13.5 billion yen. This downturn is attributed primarily to a high baseline in the prior year driven by major packaged game releases and significant non-operating losses on the valuation of derivatives caused by a volatile financial environment. The entertainment segment remains the primary driver of the business, contributing 46.3 billion yen in sales. While console software sales saw a decline in physical package revenue, digital sales remained resilient, accounting for 78.8% of the entertainment segment's total sales. Geographically, the company maintains a balanced profile, with 51.6% of revenue generated in Japan and 48.4% from overseas markets, particularly in Asia and North America. Despite the dip in revenue, total unit sales actually increased by 4.9% to 5.98 million units, bolstered by strong digital downloads. Looking ahead, the company revised its full-year earnings forecast, raising its operating profit target to 34 billion yen while lowering ordinary and net profit expectations due to the aforementioned non-operating expenses. Growth strategy for the fourth quarter relies on a robust pipeline of global releases, including high-profile titles such as Wild Hearts, Wo Long: Fallen Dynasty, and Atelier Ryza 3. Additionally, the mobile sector showed momentum with the successful launch of Nobunaga’s Ambition: Ha-do and continued regional expansion of existing smartphone IPs. To support this long-term growth, the company increased its total headcount by 15.7% to 2,400 employees.

market-analysis investment global

Koei TecmoJan 2023

Financial

Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2022

Koei Tecmo Holdings Co., Ltd. reported its consolidated financial results for the nine-month period ending December 31, 2022, revealing a significant year-on-year decline across major profitability metrics. Prepared under Japanese GAAP, the data reflects the performance of the Japanese game developer and publisher during a period of contraction compared to the previous fiscal year. Net sales for the nine-month period reached 49,439 million yen, representing a 10.6% decrease from the 55,327 million yen recorded in the same period in 2021. Operating profit fell by 15.2% to 22,994 million yen. The most substantial declines were observed in ordinary profit and profit attributable to owners of the parent, which plummeted by 56.5% and 52.4% respectively. Earnings per share consequently dropped from 85.10 yen to 42.78 yen. These results were heavily impacted by non-operating expenses, specifically a 12,626 million yen loss on the valuation of derivatives and a 7,373 million yen loss on the redemption of securities. The company’s financial position also saw a reduction in total assets, which decreased from 219,803 million yen at the end of March 2022 to 189,092 million yen by December 31, 2022. This was driven largely by a sharp decline in current assets, including cash, deposits, and short-term securities. Despite the downturn in nine-month performance, the full-year forecast for the period ending March 31, 2023, anticipates a slight recovery in top-line growth, with net sales projected to reach 77,000 million yen, a 5.8% increase over the previous full fiscal year. However, full-year net income is still expected to remain 33.5% lower than the prior year's results.

investment market-analysis japan

Koei TecmoJan 2023

Financial

Financial Results for the First Half of the Fiscal Year Ending March 2023

Koei Tecmo’s financial performance for the first half of the fiscal year ending March 2023 reflects a strategic transition toward large-scale global expansion and long-term intellectual property development. While net sales experienced a slight year-on-year decline of 6.6% to 34.76 billion yen, operating profit grew by 11.6% to 18.32 billion yen. This growth was supported by a 28.2% increase in software unit sales, totaling 4.68 million units, led by the success of titles such as Fire Emblem Warriors: Three Hopes. Despite a drop in net profit caused by lower non-operating income, the company remains on track to meet its full-year sales forecast of 77 billion yen. The current fiscal year serves as the foundation for a medium-term management plan spanning through FY2024, which aims to achieve 100 billion yen in sales and 40 billion yen in operating profit. Central to this strategy is the pursuit of a new global intellectual property capable of selling five million units, supported by a pipeline of annual releases targeting two million units each. Upcoming major titles like Wild Hearts and Wo Long: Fallen Dynasty are critical to this international push, as overseas markets are projected to account for over 71% of total unit sales. Operational stability and technical efficiency underpin these ambitious financial targets. The company leverages its proprietary Katana Engine to streamline development across a multi-layered revenue cycle that includes console software, mobile gaming, and IP licensing. With a focus on high-growth segments, the company seeks to establish mobile titles generating monthly revenues between one and two billion yen. Furthermore, a twelve-year streak of profitability and an industry-leading low employee turnover rate of 4.2% provide the organizational continuity necessary to execute these high-cost, high-reward global projects.

market-analysis investment japan

Koei TecmoOct 2022

Financial

Financial Results for the First Half of the Fiscal Year Ending March 2022

Koei Tecmo achieved record-breaking financial performance during the first half of the fiscal year ending March 2022, characterized by a 60.8% increase in sales to ¥37.2 billion and a 94.4% surge in operating profit to ¥16.4 billion. This growth was primarily catalyzed by the Entertainment segment, where smartphone and social game revenue nearly doubled. While digital console sales saw a significant 53.3% increase in units sold, the company remains cautious regarding its full-year outlook, maintaining a ¥65 billion sales forecast due to the potential stabilization of pandemic-driven demand and broader global economic volatility. The strategic shift toward online and mobile sectors has proven successful, led by the sustained performance of titles such as Romance of the Three Kingdoms Ha-do and Three Kingdoms Tactics. Although total console unit sales are projected to experience a slight 7% year-over-year decline to 9.4 million units, mobile downloads are expected to rise by 14.5% to over 113 million. These results support a medium-term objective to reach ¥90 billion in annual sales by fiscal year 2023, underpinned by a development pipeline focused on high-profile intellectual properties and the proprietary Katana Engine for efficient multi-platform deployment. Future expansion relies on a multi-layered revenue model that combines internal IP development, such as the cross-media expansion of Blue Reflection, with global collaborations like Stranger of Paradise: Final Fantasy Origin. The long-term growth strategy prioritizes the establishment of new global franchises capable of selling five million units and the launch of smartphone titles targeting monthly revenues of ¥2 billion. By leveraging IP licensing and international partnerships, the organization aims to solidify its position in the global market while diversifying its portfolio across console, mobile, and digital platforms.

market-analysis investment global

Koei TecmoOct 2022

Financial

Summary of Consolidated Financial Results for the Six Months Ended September 30, 2022 (Based on Japanese GAAP)

Koei Tecmo Holdings Co., Ltd. reported consolidated financial results for the first half of the fiscal year ending March 31, 2023, covering the period from April 1, 2022, to September 30, 2022. The data reflects a period of transition for the Japanese game developer, characterized by rising operating efficiency despite a contraction in overall net sales and net profit. Net sales for the six-month period reached 34.76 billion yen, representing a 6.6% decrease compared to the same period in the previous year. Despite this decline in revenue, operating profit grew by 11.6% to 18.32 billion yen, driven by a significant reduction in the cost of sales. However, ordinary profit fell by 29.5% to 17.67 billion yen, and profit attributable to owners of the parent decreased by 24.8% to 13.65 billion yen. This divergence between operating and ordinary profit was largely due to non-operating factors, including a 7.46 billion yen loss on the valuation of derivatives and a 3.27 billion yen loss on the redemption of securities. The company’s financial position remains stable with total assets of 206.49 billion yen and an equity ratio of 60.7%. For the full fiscal year ending March 31, 2023, the company forecasts net sales of 77 billion yen, which would represent a 5.8% year-on-year increase. However, full-year operating profit is expected to decline by 5.9% to 32.5 billion yen, with net profit projected to fall by 10.9% to 31.5 billion yen. These results were prepared in accordance with Japanese GAAP and highlight the impact of volatile investment securities and derivative valuations on the company's bottom line.

investment market-analysis japan

Koei TecmoOct 2022

Financial

Summary of Consolidated Financial Results for the Three Months Ended June 30, 2022

Koei Tecmo Holdings reported consolidated financial results for the first quarter of the fiscal year ending March 31, 2023, covering the three-month period from April 1, 2022, to June 30, 2022. The data reveals a complex fiscal performance characterized by rising operational efficiency despite declining top-line revenue and significant non-operating headwinds. Net sales for the quarter reached 18.65 billion yen, representing a 9.1% decrease compared to the same period in the previous year. Conversely, operating profit grew by 19.9% to 11.66 billion yen, driven by a substantial reduction in the cost of sales, which fell from 7.11 billion yen to 3.37 billion yen year-over-year. The bottom-line results were heavily impacted by non-operating factors. Ordinary profit fell by 50.6% to 9.09 billion yen, and profit attributable to owners of the parent dropped by 49.6% to 6.75 billion yen. This decline was largely attributed to a sharp increase in non-operating expenses, which rose from 1.25 billion yen to 9.54 billion yen. Key contributors to these expenses included a 5.68 billion yen loss on the valuation of derivatives and a 2.34 billion yen loss on the redemption of securities. Furthermore, the company recorded a comprehensive loss of 185 million yen for the quarter, primarily due to a 7.80 billion yen negative swing in the valuation difference on available-for-sale securities. Looking ahead, the full-year forecast for the period ending March 31, 2023, anticipates net sales of 77 billion yen, a 5.8% increase over the prior year. However, profitability is expected to contract across the board, with projected declines in operating profit (5.9%), ordinary profit (12.7%), and profit attributable to owners (10.9%). The company’s financial position remains stable with total assets of 203.10 billion yen and an equity ratio of 59.4%, though net assets per share decreased from 874.33 yen to 766.20 yen during the quarter.

investment market-analysis japan

Koei TecmoJul 2022

Financial

Financial Results for the First Quarter of the Fiscal Year Ending March 2023

Koei Tecmo Holdings reported record quarterly operating profit for the first quarter of the fiscal year ending March 2023, covering the period from April to June 2022. While net sales decreased by 9.1% year-over-year to 18.65 billion yen, operating profit rose by 19.9% to 11.66 billion yen. This growth in profitability was driven by an improved operating profit ratio and the partial reversal of development costs from cooperative partners. Conversely, ordinary profit and net profit saw significant declines of approximately 50% each, attributed to non-operating expenses resulting from a portfolio restructuring intended to address a challenging financial environment. The entertainment segment remained the primary business driver, contributing 17.8 billion yen in sales. Performance was bolstered by the release of Fire Emblem Warriors: Three Hopes and steady sales of Winning Post 9 2022 and Taikou Rissiden V DX. Total console software sales reached 3.09 million units, a 26.1% increase over the previous year, with overseas markets accounting for over 72% of total volume. Despite the growth in unit sales, package sales revenue declined by 30.8%, while digital download revenue grew by 17.4%, maintaining a digital sales ratio of 60.5%. The online and mobile sectors experienced a slight 4.9% decline in revenue compared to the prior year but remained a stable component of the business. Geographically, sales were evenly split between Japan and overseas markets, with Asia representing the largest international territory. Looking ahead, the company maintained its original first-half and full-year forecasts, citing an upcoming pipeline that includes Nobunaga’s Ambition: Shinsei and Wo Long: Fallen Dynasty. Operational costs increased as the total headcount grew by 15.6% to 2,413 employees, reflecting continued investment in development capabilities across its global offices.

investment market-analysis global

Koei TecmoJul 2022

Financial

Financial Results for the Fiscal Year Ending March 2022

Koei Tecmo achieved record-breaking financial performance during the fiscal year ending March 2022, characterized by a 20.5% increase in sales to ¥72.7 billion and a 41.5% surge in operating profit to ¥34.5 billion. This growth was primarily catalyzed by the Entertainment segment, where smartphone and social game revenues rose by 48.2% and cumulative mobile downloads increased by nearly 30%. High-performing titles such as Three Kingdoms Tactics and steady repeat sales of established console franchises like Nioh 2 allowed the company to meet its three-year medium-term profit targets in only one year. The strategic focus for the upcoming fiscal year involves a transition toward long-term major title development under a new management plan. While sales are projected to rise further to ¥77 billion, operating profits are expected to experience a temporary decline as the company reinvests in its workforce and infrastructure. This includes a significant 23% increase in basic employee salaries and the establishment of a new IP Business Division and a Shanghai office to better penetrate the Chinese market and manage global licensing. Future expansion strategies prioritize the creation of a new intellectual property capable of selling five million units and the development of mobile titles that generate ¥2 billion in monthly revenue. Geographically, the company is shifting its emphasis toward North America and Europe, forecasting a 15.6% growth in console unit sales to reach 9.4 million units globally. By balancing the steady revenue of licensed mobile content with the ambitious development of large-scale internal IPs, the organization aims to solidify its position as a global leader in the entertainment industry.

market-analysis global console

Koei TecmoApr 2022