Koei Tecmo

Game Co.

212 documents

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

Documents

Financial

Financial Highlights for the 1st Half of the Fiscal Year Ending March 2019 (FY2018)

Koei Tecmo Holdings reported strong financial growth for the first half of the fiscal year ending March 2019, characterized by double-digit increases across all major profitability metrics. Net sales reached 17.4 billion yen, representing a 16.7% increase over the same period in the previous year. Operating income saw a more dramatic rise of 64.3%, totaling 4.68 billion yen, while net income grew by 24.9% to reach 6.29 billion yen. These results indicate a high level of operational efficiency, as gross profit margins expanded significantly during the period. The Entertainment segment remains the primary driver of the company’s business, contributing 15.65 billion yen in sales and 4.18 billion yen in operating income. Other business units also showed notable momentum; the Pachislot & Pachinko segment grew its revenue by 55.3%, and the Amusement Facilities segment successfully transitioned from an operating loss in the prior year to a profit. While the company maintains a positive outlook for the full fiscal year with a sales forecast of 41 billion yen, the projections suggest a more conservative second half, with anticipated slight year-over-year declines in full-year pre-tax and net income. The consolidated balance sheet as of September 30, 2018, reflects a robust financial position with total assets of 126.6 billion yen. A significant portion of the company’s value is held in investment securities, totaling nearly 75 billion yen. Shareholders' equity remains strong at 112.9 billion yen, and the company maintains a low debt profile, with total liabilities decreasing to 9.5 billion yen from 12.3 billion yen at the start of the fiscal year. This financial stability provides a solid foundation for the company’s continued expansion in the global entertainment market.

market-analysis investment

Koei TecmoJan 2018

Financial

Fiscal Year Ending March 2018: Financial Results

Koei Tecmo Holdings reported record-high profits for the fiscal year ending March 2018, driven by a successful multi-platform strategy and significant growth in overseas markets. Net sales reached 38.9 billion yen, a 5.1% year-over-year increase, while operating profit surged by 33.4% to 11.7 billion yen. This financial performance was supported by the global success of key titles such as Nioh, which sold over 1.9 million copies, and Fire Emblem Warriors, which surpassed 1 million units. The geographic data highlights a strategic shift toward international expansion. While domestic sales in Japan saw a slight decline of 4%, overseas revenue grew by 30%, now accounting for one-third of total sales. Unit sales outside of Japan were particularly strong, representing nearly 69% of total volume, with Europe and North America showing the most aggressive growth rates at 89.8% and 60.6% respectively. The entertainment segment remains the primary driver of the business, contributing 35.4 billion yen in sales. Looking forward, the mid-term management plan through fiscal year 2020 aims for a 10% average annual increase in sales and profit. Key strategic pillars include the creation of global intellectual properties capable of selling 5 million units and the development of smartphone titles generating 1 billion yen in monthly profit. A major focus is placed on a three-year expansion plan into the Chinese market and the reevaluation of global offices to strengthen digital marketing and community engagement. For the fiscal year ending March 2019, the company projects continued growth with a sales target of 41 billion yen. To support these objectives, management is accelerating leadership transitions and maintaining a shareholder-friendly payout policy of 50%. Capital expenditure plans also include the development of a new office in Minato Mirai to modernize infrastructure and support the cultivation of global-oriented producers and directors.

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Koei TecmoJan 2018

Financial

Financial Highlights for the 3rd Quarter of the Fiscal Year Ending March 2018 (FY2017)

Koei Tecmo Holdings reported strong profitability growth for the third quarter of the fiscal year ending March 2018, despite a slight softening in top-line revenue. While net sales saw a marginal year-over-year decline of 0.7% to 24.03 billion yen, the company achieved significant improvements in its bottom-line performance. Operating income rose by 62.5% to 5.69 billion yen, and net income increased by 38.0% to 8.26 billion yen. This growth was driven by enhanced operational efficiency, as evidenced by a 19.4% increase in gross profit. The Entertainment segment remains the primary driver of the business, contributing 21.26 billion yen in sales and 4.92 billion yen in operating income, the latter representing an 81.2% year-over-year increase. In contrast, the Pachislot & Pachinko segment experienced a sharp decline, with sales falling 52.1% and operating income dropping 57.5%. The Amusement Facilities segment saw a 24.0% rise in sales but recorded an operating loss of 227 million yen for the period. On the balance sheet, total assets grew to 126.29 billion yen as of December 31, 2017. This growth was largely fueled by a substantial increase in investment securities, which rose from 65.48 billion yen to 81.45 billion yen. The company maintains a robust equity position with total net assets of 114.63 billion yen. Looking ahead to the full fiscal year, the company forecasts a recovery in sales to 42.0 billion yen, representing a 13.4% annual increase, while maintaining a positive outlook for continued growth in operating and net income.

market-analysis market-forecast japan

Koei TecmoJan 2017

Financial

Fiscal Year Ending March 2018: 1st Half Financial Results

Koei Tecmo Holdings reported record-breaking financial performance for the first half of the fiscal year ending March 2018, achieving all-time highs in ordinary profit and net income. Despite a 10% year-over-year decrease in sales to 14.9 billion yen, ordinary profit rose 40.6% to 6.9 billion yen, and net income increased 33% to 5.0 billion yen. These results significantly exceeded initial management forecasts, driven by high-margin IP licensing and a strong performance in the entertainment segment, which remains the primary revenue driver. The geographic scope of the results reveals a strategic shift toward international markets. While domestic sales in Japan declined by 19.1%, overseas revenue grew by 15.6%, with the Asian market showing the most significant growth at 45.9%. Unit sales data further illustrates this trend, as overseas software sales rose to 69.3% of the total volume, nearly doubling in North America and Europe compared to the previous year. Key titles contributing to this success included Nioh, which surpassed 2 million units, and Fire Emblem Warriors. Looking ahead, the company maintains an optimistic full-year outlook, projecting sales of 42 billion yen and an operating profit of 11.5 billion yen. The strategy for the second half of the fiscal year focuses on multi-platform releases for the Nintendo Switch, PlayStation 4, and Steam, alongside the expansion of smartphone gaming through the new "midas" brand. Additionally, the company is diversifying its portfolio through location-based entertainment, such as the "VR Sense" cabinet, and strategic alliances with AI technology firms like HEROZ, Inc. to enhance future development capabilities.

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Koei TecmoJan 2017

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

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.

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Koei TecmoJan 2016

Financial

Financial Highlights for the 1st Quarter of the Fiscal Year Ending March 2015 (FY2014)

Koei Tecmo Holdings reported a significant increase in profitability for the first quarter of the fiscal year ending March 2015, despite a slight decline in overall revenue. While net sales decreased by 2.8% year-over-year to 6.32 billion yen, operating income surged by 959.1% to 470 million yen. Net income also saw substantial growth, rising 45% to 1.36 billion yen. These results indicate a shift toward higher-margin business activities and improved operational efficiency during the three-month period ending June 30, 2014. Performance across business segments was mixed. The core Game Software division experienced a 14.4% drop in sales and a 33.1% decline in operating income, reflecting the cyclical nature of major title releases. Conversely, the Online & Mobile segment emerged as a primary growth driver, with sales increasing 18.4% and operating income rising 71.9%. Other areas, including Media & Rights and Pachislot & Pachinko, also posted revenue gains, while the Amusement Facilities segment continued to face challenges, reporting a small operating loss. The consolidated balance sheet shows a total asset value of 93.8 billion yen, a decrease from the 100.6 billion yen reported at the end of the previous fiscal year. This change was largely driven by a reduction in cash and accounts receivable. However, the company maintains a strong equity position with net assets totaling 87.3 billion yen. Looking ahead, the full-year forecast remains optimistic, projecting net sales of 38 billion yen and an operating income of 8 billion yen, suggesting that the company expects continued momentum in its digital and mobile sectors to offset fluctuations in traditional software retail.

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Koei TecmoMar 2015

Financial

Financial Highlights for the 3rd Quarter of the Fiscal Year Ending March 2016 (FY2015)

Koei Tecmo Holdings reported its financial results for the third quarter of the fiscal year ending March 2016, revealing a period of mixed performance characterized by declining top-line revenue but improved net profitability. For the nine-month period ending December 31, 2015, net sales reached 22.54 billion yen, representing a 6.4% decrease compared to the same period in the previous year. Operating income also saw a significant year-over-year contraction of 19.0%, falling to 3.94 billion yen. Despite these declines in operational performance, net income rose by 4.6% to 6.83 billion yen, supported by strong non-operating figures that bolstered income before taxes. The performance across business segments was varied. The core Game Software division experienced a 10.8% drop in sales and a 26.6% decline in operating income, reflecting a challenging period for traditional packaged software. Conversely, the Online & Mobile segment demonstrated growth, with sales increasing by 8.2% to 5.30 billion yen and operating income rising by 9.1%. Other smaller segments, such as Amusement Facilities and Real Estate, showed improved profitability despite their smaller scale, while the Media & Rights division swung to a small operating loss. Geographically focused on the Japanese market with global reach through its software titles, the company remains optimistic about its full-year outlook. Management maintained forecasts that project a recovery in the fourth quarter, targeting annual net sales of 40 billion yen and a net income of 9.5 billion yen. The balance sheet remains liquid, though total assets decreased from 115.2 billion yen at the start of the fiscal year to 104.5 billion yen, primarily driven by a reduction in notes and accounts receivable and a decrease in the valuation of investment securities. Net assets stood at 97.8 billion yen at the end of the third quarter.

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Koei TecmoJan 2015

Financial

Financial Highlights for the Fiscal Year Ending March 2015 (FY2014)

Koei Tecmo Holdings achieved significant profitability growth during the fiscal year ending March 31, 2015, despite relatively flat top-line revenue. While net sales saw a marginal increase of 0.6% to 37.8 billion yen, operating income surged by 35.2% to 9.65 billion yen. This trend extended to net income, which rose 36% to reach 9.4 billion yen. These results reflect a successful shift toward higher-margin business activities and improved operational efficiency across the company’s core segments. The game software division remains the primary driver of financial performance, contributing 24.9 billion yen in sales. Although segment revenue declined slightly by 2.3%, its operating income grew by nearly 30%, indicating a more profitable product mix or reduced development costs. The online and mobile segment and the media and rights division both posted gains in revenue and profit, with media and rights seeing a notable 32.5% increase in sales. Conversely, the amusement facilities and pachislot segments experienced double-digit declines in both revenue and operating income, reflecting a challenging environment for physical location-based entertainment. The consolidated balance sheet reveals a strong liquidity position and a substantial increase in total assets, which grew from 100.6 billion yen to 115.2 billion yen. This growth was largely driven by a rise in investment securities and property and equipment. Shareholders' equity also strengthened, supported by a significant increase in retained earnings and unrealized gains on securities. Looking ahead to the 2015 fiscal year, forecasts suggest continued growth with a sales target of 40 billion yen and a modest increase in net income, signaling confidence in the sustained performance of the company’s digital and intellectual property portfolios.

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Koei TecmoJan 2015

Financial

Koei Tecmo Wave Balance Sheet: FY2019

Koei Tecmo Wave, a subsidiary of the Koei Tecmo Group specializing in amusement facility management and arcade equipment, maintained a stable financial position for the fiscal year ending March 31, 2020. The balance sheet reflects a total asset value of 2.58 billion yen, with a significant concentration in liquid assets. Current assets account for 1.92 billion yen, largely driven by 1.47 billion yen in short-term loans to affiliated companies, suggesting a centralized cash management strategy within the broader corporate group. Cash and deposits stand at 124 million yen, while accounts receivable total 186 million yen. The fixed asset portfolio, valued at 665 million yen, is primarily composed of tangible assets related to amusement facility equipment and buildings, totaling 253 million yen. Investment and other assets contribute 409 million yen, which includes substantial leasehold deposits of 290 million yen, typical for a business operating physical entertainment venues. On the liability side, the company maintains a conservative debt profile with 588 million yen in total liabilities, all of which are classified as current. Key obligations include accounts payable of 77 million yen and accrued income taxes of 121 million yen. The company’s equity position remains robust, with total net assets of 1.99 billion yen. This is supported by 100 million yen in capital stock and 1.25 billion yen in capital surplus. Retained earnings reached 647 million yen, bolstered by a reported net income of 303 million yen for the fiscal period. Accounting methodologies follow standard Japanese practices, utilizing declining-balance and straight-line depreciation for fixed assets and cost-basis valuation for inventories. Overall, the data indicates a highly liquid, profitable operation with minimal long-term debt and strong internal financing capabilities.

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Koei TecmoJan 2015

Financial

Fiscal Year Ending March 2016: 1st Half Financial Results

Koei Tecmo Holdings presents a financial analysis for the first half of the fiscal year ending March 2016, highlighting a period of strategic transition toward digital and global expansion. While net sales for the six-month period ended September 2015 decreased by 5.9% year-over-year to 15,159 million yen, the company significantly outperformed its initial profit forecasts. Operating profit reached 2,477 million yen, exceeding projections by 45.7%, while net income rose 3.4% to 4,061 million yen, surpassing the forecast by 84.6%. This profitability was driven by increased royalty revenue from collaboration titles and the growth of high-margin digital download sales. The data covers global operations across Japan, North America, Europe, and Asia, with a specific focus on the Game Software and Online & Mobile segments. Although Japan remains the primary market, accounting for 74.9% of sales, the Asian market showed the most aggressive growth, with sales increasing by 75.9% and unit volumes rising by 132.6%. The Game Software segment remains the largest contributor, generating 8,873 million yen in sales, while the Online & Mobile segment contributed 3,459 million yen. Strategic initiatives emphasize the expansion of intellectual property through multi-platform development and large-scale collaborations with major overseas and domestic partners. The company is aggressively pursuing the smartphone and browser game markets in Asia and adapting core titles for PlayStation 4 and Xbox One in China. To enhance shareholder value, a 1:1.2 stock split was implemented in October 2015, supported by a dividend policy targeting a 50% payout ratio. Management aims to achieve record-high yearly financial results for the full fiscal year, targeting 40,000 million yen in sales and an operating profit ratio of 25%, with a long-term goal of reaching 30%.

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Koei TecmoJan 2015