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 First Half of the Fiscal Year Ending March 2014 (FY2013)

Tecmo Koei Holdings reported significant growth across all major profitability metrics for the first half of the fiscal year ending March 2014. Net sales reached 15.46 billion yen, representing a 12.6% increase over the same period in the previous year. This growth was accompanied by a substantial rise in operating income, which surged 83.8% to 1.65 billion yen. Most notably, net income experienced a dramatic year-over-year increase of 329.6%, totaling 2.38 billion yen for the six-month period ending September 30, 2013. The Game Software segment remained the primary revenue driver, contributing 9.77 billion yen in sales, a 10.8% increase. However, the Online & Mobile and Media & Rights segments showed the strongest relative growth at 27.9% and 32.5% respectively. While most divisions saw improved performance, the Amusement Facilities and Pachislot & Pachinko segments experienced slight declines in sales. From a profitability standpoint, the Online & Mobile segment demonstrated a significant recovery, with operating income rising 62.1% to 455 million yen. The consolidated balance sheet as of September 30, 2013, shows total assets of 88.2 billion yen, a decrease from the 95.01 billion yen reported at the end of the prior fiscal year. This change was largely driven by a reduction in current assets, specifically cash and accounts receivable. Conversely, investment securities rose to 50.02 billion yen. Total liabilities decreased significantly from 13.39 billion yen to 6.07 billion yen, primarily due to a reduction in accounts payable and income taxes payable. Looking ahead to the full fiscal year results, forecasts suggest continued growth with net sales expected to reach 37 billion yen and operating income projected at 7 billion yen. These targets indicate a positive outlook for the remainder of the year, particularly for the Online & Mobile segment, which is forecasted to double its annual operating income compared to the previous full year.

market-analysis investment japan+1

Koei TecmoMar 2014

Financial

Fiscal Year Ending March 2014 Financial Results

Tecmo Koei Holdings reported record-breaking financial results for the fiscal year ending March 31, 2014, marking the fourth consecutive year of profit growth. Net sales reached 37.58 billion yen, an 8.5% year-on-year increase, while net income rose 22.6% to 6.94 billion yen. This performance was driven by the successful execution of the "IP Creation and Expansion" strategy, highlighted by the 30th anniversary of the Nobunaga’s Ambition series and the launch of the new Toukiden IP, which sold 550,000 units. The Game Software segment remained the primary revenue driver, contributing 25.4 billion yen in sales, followed by the Online & Mobile segment at 6.4 billion yen. Geographically, Japan accounted for over 83% of total sales, though the Asian market showed the strongest growth at 33.2%. While total unit sales remained relatively flat at 6.5 million units, profitability improved significantly; the operating profit ratio rose to 19.0%, and the ordinary profit ratio reached 28.6%. These gains were supported by a reduction in the cost of goods sold and improved management of SG&A expenses. Looking ahead to fiscal year 2014, the company plans to achieve further growth with a sales target of 38 billion yen and an ordinary profit ratio exceeding 30%. Strategic priorities include expanding smartphone and browser games in Asian markets, pursuing major collaborations such as Hyrule Warriors for the Wii U, and supporting new hardware platforms like the PlayStation 4 and Xbox One. To reward shareholders, the company maintains a 50% payout ratio policy, increasing the annual dividend to 41 yen with a long-term goal of reaching 50 yen.

investment market-analysis japan

Koei TecmoJan 2014

Financial

Fiscal Year Ending March 2015 Financial Results

Koei Tecmo achieved record-breaking financial performance for the fiscal year ending March 2015, marking five consecutive years of profit growth and two years of rising sales. Net income surged 36% year-over-year to ¥9.4 billion, a success attributed to the robust performance of the Online and Mobile segment and high-profile intellectual property collaborations such as Dragon Quest Heroes. This period of growth was characterized by a significant improvement in operational efficiency, with the operating profit ratio rising to 25.5% and the cost-of-sales ratio decreasing by 7.0 points since 2011. Consequently, the company increased its dividend to 55 yen per share, reflecting a strong commitment to shareholder returns. The strategic focus has shifted toward a multi-platform digital approach, prioritizing the expansion of smartphone games and digital download content. A central pillar of this strategy involves leveraging established IP through global licensing and large-scale collaborations, supported by the creation of a dedicated Business Promoting Division. Geographically, there is a concerted effort to penetrate Asian markets, specifically China and Korea, across both console and mobile platforms. This international outlook extends to the company’s investment strategy, which saw foreign asset holdings increase from 20% in 2011 to 60% in 2014, with future targets set even higher. Looking ahead to the next fiscal year, sales are forecasted to grow by 5.8% to reach ¥40 billion. The long-term objective remains the continuous creation and expansion of intellectual property to maintain this upward trajectory. By balancing traditional console development with aggressive mobile growth and international licensing, the organization aims to solidify its position as a highly profitable global entertainment provider while maintaining the financial stability established over the previous four-year period.

investment japan

Koei TecmoJan 2014

Financial

Fiscal Year Ending March 2015: 1st Half Financial Results

Koei Tecmo Holdings reported record-breaking financial results for the first half of fiscal year 2014, ending September 30, 2014. Net sales reached 16.1 billion yen, a 4.2% increase year-over-year, while operating profit nearly doubled to 3.29 billion yen. This performance represents the fourth consecutive year of sales and profit growth, driven by strong software sales on new hardware platforms, the expansion of the download business, and high-performing social games. The game software segment remains the primary revenue driver, contributing 9.87 billion yen in sales. Key titles such as Hyrule Warriors, Toukiden: Kiwami, and Atelier Shallie performed well globally. Geographically, while Japan remains the largest market accounting for 78.2% of sales, overseas revenue grew by 31%, with significant gains in North America and Europe. The company also noted a strategic shift toward multi-platform development, supporting PlayStation 4 and Xbox One, and expanding its presence in the smartphone and mobile market through native apps and regional expansion in China, Korea, and Taiwan. Management’s long-term strategy focuses on intellectual property creation and expansion through a "media mix" approach, including animations, comics, and movies. A notable organizational change included the merger of Koei Tecmo Games and Gust to strengthen development synergies. For the full fiscal year 2014, the company projects net sales of 38 billion yen and an operating profit of 8 billion yen. Based on this growth, the company has targeted an annual dividend increase to 50 yen, maintaining a policy of a 50% payout ratio or a minimum 50-yen dividend to enhance shareholder returns.

investment mergers-acquisitions japan+1

Koei TecmoJan 2014

Financial

Financial Highlights for the 3rd Quarter of the Fiscal Year Ending March 2014 (FY2013)

Tecmo Koei Holdings reported significant financial growth for the third quarter of the fiscal year ending March 2014, demonstrating a strong upward trend in profitability and revenue compared to the same period in the previous year. Net sales for the nine-month period reached 25.58 billion yen, a 15.2% increase year-over-year. This growth was accompanied by a substantial rise in earnings, with operating income climbing 43.5% to 3.58 billion yen and net income nearly doubling with a 90.8% increase to 4.98 billion yen. These results indicate high operational efficiency and a successful product mix during the reporting period. The Game Software segment remained the primary driver of revenue, contributing 17.03 billion yen in sales, a 16% increase. However, the Online & Mobile segment showed the most significant momentum in profitability, with operating income rising 49.3% to 698 million yen. Other segments, such as Media & Rights and Pachislot & Pachinko, also saw revenue gains, while the Amusement Facilities division experienced a decline in both sales and operating income. The company’s balance sheet reflects a strategic shift in asset allocation, characterized by a decrease in cash and time deposits and a notable increase in investment securities, which rose from 45.34 billion yen to 56.26 billion yen. Geographically focused on the Japanese market with broader international implications, the data suggests a positive outlook for the full fiscal year. Management forecasted total annual sales of 37 billion yen and a net income of 5.7 billion yen. The financial position remains robust, with total net assets increasing to 86.88 billion yen by the end of December 2013. This stability is supported by a significant rise in accumulated other comprehensive income, driven largely by unrealized gains on securities and favorable foreign currency translation adjustments.

investment market-analysis japan

Koei TecmoJan 2014

Financial

Fiscal Year Ending March 2014: 1st Half Financial Results

Tecmo Koei Holdings reported record-breaking financial results for the first half of the fiscal year ending March 2014, marking the third consecutive year of growth in both sales and profit. Net sales reached 15.46 billion yen, a 12.6% increase year-over-year, while operating profit rose 83.8% to 1.65 billion yen. Net income saw a substantial surge of 329.6%, totaling 2.38 billion yen. These results were driven by strong performances in the Game Software and Online & Mobile segments, alongside effective cost management that improved the operating profit ratio from 6.5% to 10.7%. The geographic scope of these results remains heavily centered in Japan, which accounted for 82.7% of sales. While overseas sales saw a slight decline of 6.9%, the Asian market emerged as a growth area with a 56% increase in revenue. In terms of industry segments, Game Software remains the primary driver, supported by successful titles such as Toukiden: The Age of Demons, which sold 470,000 units in Japan and Asia. The Online & Mobile segment also showed growth, supported by over 25 million users across various social and mobile platforms, including successful titles on App Store and Google Play. The strategic thesis focuses on "IP Creation and Expansion," emphasizing multi-platform development and the integration of intellectual property across games, animation, and events. Looking forward, the company plans to aggressively support new platforms like the PlayStation 4 and expand its digital distribution and smartphone application business. Financial projections for the full fiscal year 2013 estimate sales of 37 billion yen and net income of 5.7 billion yen. The company maintains a robust dividend policy, aiming for a 50% payout ratio or a minimum dividend of 50 yen, reflecting a commitment to shareholder returns as it pursues long-term profitability.

market-analysis investment japan

Koei TecmoJan 2013

Financial

Financial Highlights for the 1st Quarter of the Fiscal Year Ending March 2013 (FY2012)

Tecmo Koei Holdings experienced a significant downturn in financial performance during the first quarter of the fiscal year ending March 2013. Net sales fell by 12.7% year-over-year to 5.86 billion yen, while operating income plummeted by 92.8% to just 24 million yen. The period was marked by a transition into a net loss of 488 million yen, a sharp contrast to the 265 million yen profit recorded in the same quarter of the previous year. This decline was primarily driven by the core game software segment, which saw sales drop nearly 20% and operating income fall by 84.5% as the company navigated a challenging market environment. Performance across most business segments remained sluggish during the quarter. The online and mobile division saw a 10% decrease in sales, while the media and rights segment continued to operate at a loss. Conversely, the pachislot and pachinko segment provided a rare bright spot, with sales increasing by 127.4% and operating income rising from 6 million to 90 million yen. Despite these quarterly setbacks, the organization maintains an optimistic outlook for the full fiscal year, forecasting total net sales of 39 billion yen and a net income of 5 billion yen, representing projected annual growth of 9.8% and 7.7% respectively. The data reflects a heavy reliance on the traditional game software segment, which accounts for the majority of revenue but also the highest volatility in earnings. While the first quarter results suggest a difficult start to the year, the full-year projections indicate an expected recovery driven by upcoming releases and growth in the online and mobile sectors. Methodologically, the figures represent consolidated financial statements for the Japanese holding company, including internal segment reclassifications such as the movement of CWS Brains from amusement facilities to the online and mobile division.

investment market-analysis japan+1

TECMO KOEI HOLDINGS CO., LTD.Jan 2013

Financial

Financial Highlights for the Fiscal Year Ending March 2013 (FY2012)

Tecmo Koei Holdings achieved significant profitability growth during the fiscal year ending March 31, 2013, despite a slight contraction in overall revenue. Net sales decreased by 2.5% to 34.6 billion yen, yet the company realized a 7.8% increase in operating income and a substantial 21.9% rise in net income, which reached 5.6 billion yen. This divergence between top-line revenue and bottom-line profit suggests improved operational efficiencies and a more profitable product mix within the core business segments. The game software division remains the primary revenue driver, contributing 23.7 billion yen. While sales in this segment fell by 4.7%, its operating income surged by 27%, indicating higher margins on software titles. Conversely, the online and mobile segment experienced a sharp 50% decline in operating income, falling to 549 million yen. The pachislot and pachinko segment emerged as a high-growth area, with sales increasing by 29% and operating income rising by 15.2%. Other smaller segments, such as amusement facilities, showed modest growth, while the media and rights division posted a small operating loss. The corporate balance sheet strengthened considerably over the twelve-month period, with total assets expanding from 80.7 billion yen to 95 billion yen. This growth was largely fueled by a significant increase in investment securities, which rose from 33.7 billion yen to 45.3 billion yen, and a doubling of cash and time deposits. Shareholders' equity improved to 82.4 billion yen, supported by a recovery in accumulated other comprehensive income, specifically a swing from unrealized losses to gains on securities. These financial results reflect a period of consolidation and asset growth for the Japanese publisher, characterized by robust software profitability and a diversifying revenue base.

market-analysis investment japan

Koei TecmoJan 2013

Financial

Financial Highlights for the Fiscal Year Ending March 2014 (FY2013)

Tecmo Koei Holdings achieved significant financial growth during the fiscal year ending March 31, 2014, characterized by an 8.5% increase in net sales to 37.58 billion yen. Profitability metrics showed even stronger momentum, with operating income rising 15% to 7.14 billion yen and net income surging 22.6% to 6.94 billion yen. These results reflect a successful transition toward digital and diversified entertainment segments within the Japanese and global gaming markets. The Online and Mobile segment emerged as a primary driver of profitability, recording a 17.2% increase in revenue and a 95.3% jump in operating income. While Game Software remained the largest revenue contributor at 25.44 billion yen, its operating income saw a slight contraction of 3.4%, suggesting higher development costs or shifting margins within traditional retail software. Other growth areas included Media and Rights, which returned to profitability, and the Pachislot and Pachinko business, which grew operating income by 43.6%. Conversely, the Amusement Facilities segment struggled, with revenue and operating income declining by 7.1% and 42.6% respectively. The consolidated balance sheet indicates a robust financial position with total assets expanding to 100.62 billion yen. A notable strategic shift is visible in the investment portfolio, where investment securities rose from 45.34 billion yen to 56.91 billion yen. Total net assets increased to 88.79 billion yen, supported by a rise in retained earnings and favorable foreign currency translation adjustments. This financial stability, paired with a reduction in total liabilities to 11.83 billion yen, positioned the company with a strong equity ratio to pursue further expansion in the digital entertainment landscape.

market-analysis investment japan

Koei TecmoJan 2013

Financial

Management Policy & Strategy: Fiscal Year Ended March 2013 Financial Results

Tecmo Koei Holdings presents a comprehensive analysis of its financial performance for the fiscal year ended March 2013 and outlines its strategic management policy for the 2013 fiscal year. The primary thesis centers on the company’s achievement of record-breaking profits and its transition toward a growth model driven by intellectual property (IP) creation and multi-platform expansion. Financial data reveals that while sales slightly decreased by 2.5% to 34.6 billion yen in FY2012, operating profit rose by 7.8% to 6.2 billion yen, and ordinary profit surged by 18.2% to 8.8 billion yen. This represents the third consecutive year of profit increases. The game software segment remained the primary driver, though the company noted a strategic need to rebuild its online, mobile, and media rights businesses. Geographically, Japan remains the dominant market, accounting for over 83% of sales, though overseas unit sales saw a significant 47.3% year-over-year increase, particularly in North America. The strategic outlook for FY2013 targets 37 billion yen in sales and 7 billion yen in operating profit. Key initiatives include the 30th anniversary of the Nobunaga’s Ambition franchise, support for new hardware such as the Wii U and PlayStation 4, and an expansion of the download business. In the mobile sector, the company plans to shift focus from feature phones to smartphones and native applications while prioritizing the Asian market for social game expansion. The overarching methodology emphasizes cost-of-goods improvements and the integration of IP across various media, including animation, events, and toys, to ensure long-term profitability and market share growth.

market-analysis investment japan

Koei TecmoJan 2013

Financial

Financial Highlights for the 1st Half of the Fiscal Year Ending March 2013

Tecmo Koei Holdings demonstrated steady financial growth during the first half of the fiscal year ending March 2013, characterized by significant improvements in profitability despite relatively flat top-line revenue. Net sales for the six-month period reached 13,724 million yen, representing a modest 0.7% increase compared to the same period in the previous year. However, operating income rose sharply by 26% to 897 million yen, while net income saw a substantial 34.5% year-over-year increase to 554 million yen. This performance suggests improved operational efficiency and a more profitable product mix during the first half of the year. The game software segment remained the primary driver of the business, contributing 8,820 million yen in sales. While segment sales saw a marginal decline of 1%, its operating income surged by 69.1%, indicating high margins on core software titles. In contrast, the online and mobile segment experienced a downturn, with sales falling 16.6% and operating income dropping 52.9%. This decline was offset by exceptional growth in the pachislot and pachinko segment, which saw sales nearly double with a 98.9% increase, and the media and rights segment, which grew by 21.4%. Looking toward the full fiscal year, projections remain optimistic with an anticipated 9.8% increase in total net sales to 39,000 million yen. The company expects a significant recovery in the online and mobile sector and continued strength in game software to drive a forecasted 21.6% increase in annual operating income. These consolidated financial results reflect a diversified entertainment portfolio across game development, digital content, and physical amusement facilities, primarily focused on the Japanese market during the 2011 to 2013 fiscal periods.

market-analysis market-forecast investment+1

Koei TecmoJan 2013

Financial

Financial Highlights for the 3rd Quarter of the Fiscal Year Ending March 2013 (FY2012)

Tecmo Koei Holdings reports significant financial growth for the third quarter of the fiscal year ending March 2013. Net sales for the nine-month period reached 22.2 billion yen, representing a 6.5% increase over the same period in the previous year. Profitability metrics showed even more substantial gains, with operating income rising 38.3% to 2.49 billion yen and net income surging 291.7% to 2.61 billion yen. This performance positions the company to meet its full-year forecast of 39 billion yen in net sales and 5 billion yen in net income. The Game Software segment remains the primary driver of revenue and profit, contributing 14.69 billion yen in sales and 2.52 billion yen in operating income, reflecting year-over-year growth of 9.8% and 83.6% respectively. In contrast, the Online & Mobile and Media & Rights segments experienced declines in both revenue and operating income during the third quarter. The Pachislot & Pachinko segment emerged as a high-growth area, with sales increasing 118.5% to 1.53 billion yen. Amusement Facilities maintained steady performance with a slight 3.5% increase in sales. The consolidated balance sheet as of December 31, 2012, indicates a strong financial position with total assets of 81.96 billion yen. A notable shift in the asset mix includes a significant increase in investment securities, which rose from 33.75 billion yen to 40.31 billion yen. Total liabilities decreased from 10.33 billion yen to 6.78 billion yen, primarily due to a reduction in current liabilities such as notes and accounts payable. Shareholders' equity remains robust at 79.07 billion yen, contributing to total net assets of 75.17 billion yen. These figures reflect the company's consolidated performance across its diverse entertainment portfolios in the Japanese and global markets.

market-analysis investment japan

Koei TecmoJan 2013