Koei Tecmo Announces Declining Quarterly Financial Results but Increases Full-Year Profit Prediction

Koei Tecmo announced financial results that declined year-on-year, but increased its prediction for full-year profit ahead of the release of Wo Long: Fallen Destiny & Wild Hearts. 😎


Published: January 30, 2023 2:49 AM /

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Koei Tecmo announced its financial result for the third quarter of the fiscal year, related to the period between October 1 and December 31, 2022. 

Net sales for the whole company were 49,439 million yen (down 10.6% year-on-year) while operating profit was 22,994 million yen (down 15.2% year-on-year). That being said, the company says that sales for both packaged games (consoles and PC) and online/mobile games progressed as planned. 

The reason for the decline was the unfavorable comparison with the launch of multiple new packaged games in the same period last year. 

Koei Tecmo Financial Results

That being said Koei Tecmo is releasing both Wo Long: Fallen Destiny and Wild Hearts before the end of the fiscal year, and it revised its full-year forecast. 

While net sales have been left untouched, and if achieved would actually mark a 5.8% growth year-on-year, the forecast for operating profit has been increased by 1,500 million yen, nearly reaching the level of the previous year (-1.5%). 

Koei Tecmo Financial Results

Looking at the specific results for the quarter of the Entertainment segment, which includes video games. Net sales were 46,298 million yen while operating profit was 22,456 million yen, both down year-on-year, respectively by 6,059 million yen and 4,127 million yen. 

Koei Tecmo Financial Results

Below you can check out additional breakdowns that are fairly interesting. We learn that 51.5% of the quarterly revenue was achieved in Japan, 34.2% in Asia, 10.8% in North America, and 3.4% in Europe. 

Koei Tecmo Financial Results

Things change sensibly if we look at unit sales, which were 31.6% located in Japan, 31.1% in North America, 16.4% in Europe, and 20.9% in Asia. Koei Tecmo sold 5,980,000 units between October and December 2022, of which 4,020 were digital downloads, a ratio of 67.2%.

Koei Tecmo Financial Results

Looking at revenue, consoles achieved 20,768 million yen, while mobile and online were at 25,130 million yen. 78.8% of total revenue was digital. Interestingly, full-game download revenue and DLC revenue for consoles were the only areas showing growth year-on-year. respectively at 0.5% and 3.7%. 

Koei Tecmo Financial Results

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Started as News Editor at TechRaptor in January 2023, following over 20 years of professional experience in gaming journalism both on print media and on the… More about Giuseppe