Konami Announces Quarterly Financial Results; Increases Forecast for Full Fiscal Year 2017

Konami announced its quarterly financial results, showing numbers in the black and an increase to the full fiscal year forecast.

on January 31, 2017 1:13 AM

Konami announced today its financial results for the first nine month of fiscal year 2017, ended on December 31st.

All the relevant figures are in the black, as you can see below, even if revenue dropped by 8.5% year-on-year, while operating profit cimbed 69.8% year-on-year.

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The company also posted its earnings forecast for the full fiscal year, that was revised upwards by 7.1% for revenue and 44% for profit.

That said, the outlook is lower by 10% year-on-year, while profit is predicted to be higher by 45.9% compared to fiscal year 2016.

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The reason for the revision was explained as follows in the press release:

“For the nine months ended December 31, 2016, consolidated financial results of operating profit, profit before income tax and profit attributable to owners of the parent exceeded those previous consolidated forecasts for the fiscal year ending March 31, 2017. In the Digital Entertainment segment, Yu-Gi-Oh! DUEL LINKS and JIKKYOU POWERFUL SOCCER, mobile games released during this third quarter ended December 31, 2016, performed strongly.

Other mobile games, including JIKKYOU PAWAFURU PUROYAKYU and PROFESSIONAL BASEBALL SPIRITS A (Ace), also continued to remain steady. In the Health & Fitness segment, the earnings results were steady due to improved quality and operational efficiency of the facilities. In light of these business performances, the Company revised its consolidated earnings forecast for the fiscal year ending March 31, 2017 as set forth above since it predicted the earnings results would finish above its previous forecast.”

And here are revenue revenue, profit and full fiscal year forecast figures split by segment, with the digital entertainment business (games) still firmly at the top among the company’s businesses.

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The press release accompanying the announcement had a detailed overview of the performance of the company’s digital entertainment business.

“As for mobile games, during the three months ended December 31, 2016, two new titles, Yu-Gi-Oh! DUEL LINKS and JIKKYOU POWERFUL SOCCERwere released to the domestic market. Each total number of downloads is increasing faster than ever, with a positive turnout. Moreover, in the domestic market, various titles continued to receive favorable reviews, including JIKKYOU PAWAFURU PUROYAKYU and PROFESSIONAL BASEBALL SPIRITS A (Ace). Above all, JIKKYOU PAWAFURU PUROYAKYU, marking its second anniversary at the start of December 2016, was promoted to boost popularity among its many followers. This included our holding of the “PAWAPURO Festival 2016” e-Sports tournament. In overseas markets, Winning Eleven CLUB MANAGER (known in overseas as PES CLUB MANAGER) and Star Wars™: Force Collection continued stable performance as well as PES 2017 – PRO EVOLUTION SOCCER – (known in domestic market as Winning Eleven 2017) was released in some parts of the world.

As for card games, the Yu-Gi-Oh! TRADING CARD GAME series continued to develop in the global market. Aiming for the global tournament to be held in August 2017, the qualifying round began with many heated DUEL match-ups unfolding. There is a great deal of excitement among Yu-Gi-Oh! fans.

As for computer and video games, we released JIKKYOU PAWAFURU PUROYAKYU Heroes for Nintendo 3DSTM in December 2016, which continued to be available to provide the enjoyment to many customers. In addition, Winning Eleven 2017 (known in overseas as PES 2017 – Pro Evolution Soccer -), which is the latest title in the series released in September 2016, continued to receive favorable reviews.

For the nine months ended December 31, 2016, sales from this business decreased and segment profit from this business increased compared with those for the nine months ended December 31, 2015. This is because the mobile games enjoyed strong performance and it contributed to higher composition ratio of the mobile games.

In terms of financial performance, total revenue for the nine months ended December 31, 2016 in this segment amounted to ¥73,666 million (a year-on-year decrease of 9.0%) and segment profit for the nine months ended December 31, 2016 amounted to ¥24,409 million (a year-on-year increase of 14.6%)”

The announcement also gave a detailed explanation of the prediction for the full fiscal year 2017 in regards to the digital entertainment business. Once more, the company mentions that it’s working on virtual reality and e-sports to “create and provide “Valuable Time” to customers.”

“With the spread of smartphones and tablet PCs worldwide, the available means of providing games continue to diversify, and opportunities to reach an even greater audience for games are increasing. Against this background, we intend to develop ways of playing games that match the characteristics of each device.

As for mobile games, the total number of registered users of all contents we developed continues to increase steadily. Those game titles include JIKKYOU PAWAFURU PUROYAKYU, surpassed 29 million downloads, and Yu-Gi-Oh! DUEL LINKS, surpassed 25 million downloads worldwide, which are expected to provide sustained enjoyment to many customers and continue to contribute toward our earnings. We are further focusing our managerial resources on the development of contents that we believe will become major hits in order to produce more hit contents, especially in the native application market. Looking ahead, we will continue to expand our lineup, utilizing previously established production and operational expertise and rich content resources.

As for card games, we will continue aggressive promotion of various measures for the Yu-Gi-Oh! TRADING CARD GAME series, to provide the enjoyment to players, not only in Japan, but in various regions of the world, with this year marking the twentieth anniversary of the start of the Yu-Gi-Oh! manga series. We will also promote various measures to cooperate with the release of the cinematic version to the global market.

As for computer and video games, we released JIKKYOU PAWAFURU PUROYAKYU Heroes in December 2016, which is the latest title in the JIKKYOU PAWAFURU PUROYAKYU series and continues receive favorable reviews. As we continue to move with the times and take on new challenges, we aim to create and provide “Valuable Time” to customers, including through the production of new games that utilize virtual reality (VR) and the serious development of e-Sports.”

 /  Executive News Editor
Hailing from sunny (not as much as people think) Italy and long standing gamer since the age of Mattel Intellivision and Sinclair ZX Spectrum. Definitely a multi-platform gamer, he still holds the old dear PC nearest to his heart, while not disregarding any console on the market. RPGs (of any nationality) and MMORPGs are his daily bread, but he enjoys almost every other genre, prominently racing simulators, action and sandbox games. He is also one of the few surviving fans of the flight simulator genre on Earth.