Capcom Announces Losses for First Quarter; Phoenix Wright Sales “Largely as Planned”
Capcom just released its financial results for the first quarter of fiscal year 2016, ended on June 30th. Unfortunately both operating income and ordinary income were in the red, with a decrease of net sales year on year of almost 25%.
The company also released a statement explaining the results:
Capcom Co., Ltd. today announced that net sales decreased to 10,927 million yen (down 24.9% from the same term last year) in the three months of fiscal year ending March 31, 2017. As for profits, the Company recorded an operating loss of 726 million yen (compared with that of 2,026 million yen for the same term last year), ordinary loss of 2,080 million yen (compared with that of 2,135 million yen for the same term last year) and a net loss attributable to owners of the parent of 1,411 million yen (compared with that of 1,569 million yen for the same term last year).
During the three months, in the Digital Contents business, because the Group’s business strategy prioritizes the second half of the fiscal year through measures such as releasing this fiscal year’s major titles in the second half of the year, the business mainly focused on minor titles. Phoenix Wright: Ace Attorney – Spirit of Justice sold largely as planned with sales supported by core users, in addition to fair digital download sales.
Regarding the Amusement Equipments business, Super Street Fighter IV sold in-line with plans; however, sales and income declined on a reactionary drop following a hit title in the first quarter of the previous fiscal year.
As a result, consolidated net sales were 10,927 million yen, operating loss was 726 million yen. The Company also recorded an ordinary loss of 2,080 million yen due to foreign exchange losses caused by the rapidly rising yen and a net loss attributable to owners of the parent of 1,411 million yen.
The forecast for the consolidated business results for the current fiscal year ending March 31, 2017 remains the same as what was projected at the financial results announcement on May 9, 2016.
We also get a detailed overview of the Digital Contents business, citing sales in line with expectations with Phoenix Wright: Ace Attorney – Spirit of Justice that has been already released in Japan. Umbrella Corps is also mentioned, but no details are provided on its actual performance.
- a. In the Digital Contents business, a series title Phoenix Wright: Ace Attorney – Spirit of Justice (for the Nintendo 3DS system) sold largely as planned with sales supported by core users. In addition, the Company released Umbrella Corps (for PlayStation 4 and PC), a title based on settings fromResident Evil, on June 23. However, as the first quarter corresponded to the off-launch season in the market launch cycle of major titles, sales were mostly generated by minor titles. Also, sales of catalog titles, whose profit margin is high, did not grow substantially.
- b. Moreover, the Company has been trying to improve the challenges surrounding online games and mobile phone contents.
- c. The resulting net sales were 6,740 million yen (up 7.1% from the same term last year). The Company recorded an operating loss of 8.0 million yen (down 99.2% from the same term last year).