Koei Tecmo Announces Solid Financial Results with Growing Japanese Market Led by PS4 and Switch

Koei Tecmo Announces Solid Financial Results with Growing Japanese Market Led by PS4 and Switch

Giuseppe Nelva July 23, 2018 5:36 AM EST

Koei Tecmo revealed its financial results for the first quarter of the current fiscal year, providing an update on the situation of its gaming business.

Today Koei Tecmo posted its financial results for the first quarter of the fiscal year, related to the period between April 1st and June 30th.

Revenue was 8,109 million yen, up 24% year-on-year, and operating income was 2,294, up 133% year-on-year. That being said, both ordinary income and net income were slightly down. In any case, all the relevant figures were firmly in the black.

We also got an overview of the situation of the publisher’s business.

Koei Tecmo mentions that the home console market in Japan was driven by PS4 and Nintendo Switch from January to June 2018, showing growth year-on-year for the second year in a row. Globally, mobile games have expanded to half of the market, and are expected to grow further in the future.

They also acknowledge that battle royale games have become a worldwide trend, and even within the genre itself new trends are born, and further expansion is expected.

In this business environment, the publisher has focused on its three-year medium-term plan focused on “global IP creation and development.” As a result of the effort to improve value and profit from original IPs NiOh has sold over 2,000,000 units as of May, and NiOh 2 has been announced at E3 2018 to keep expanding the IP on a worldwide scale.

Financial results for the first quarter have exceeded predictions and show steady progress, even thanks to increased operating revenues from smartphone games and royalty revenues from IP licenses.

The entertainment business segment (which includes games) recorded 7,375 million yen in revenue and 2,134 million yen in profit, which accounts for the vast majority of the company’s totals.

We also learn that continued game and DLC sales of Dynasty Warriors 9 and Attack on Titan 2 which were released in the previous quarter have been performing well.

In the smartphone business, Dissidia Final Fantasy Opera Omnia also contributed to global revenue.