The Q1 report for Konami has been released, and the company is reporting good growth overall.
Konami was able to rake in a revenue of ¥51.2 billion, or roughly $411 million during the first quarter. This was a 105.3% increase from the previous year. The operating profit for the first quarter ended with Konami up as well; ¥6,484 billion, or roughly $52 million, which was up by 186.7% year to year.
The big winner for Konami was their digital entertainment depart, which was able to generate ¥23.8 billion, or $190 million, in revenue. This lead to a profit increase of 78.5%, to ¥6.5 billion.
The other major business by Konami was their health and fitness line, which saw 225% growth year to year, earning ¥453 million. The other businesses for Konami was relatively steady, even some taking minor losses that failed to put a dent in the overall report.
Konami attributes the success of their quarter to a specific product in the digital entertainment section, the game JIKKYOU PAWAFURU PUROYAKYU. The game, a mobile baseball title based on the JIKKYOU series, reached 13 million downloads since it was launched in December 2014 in Japan. Konami was also able to make money off of other mobile titles, such as Star Wars: Force Collection and PES Collection, each of which reported solid sales throughout the quarter.
Konami has been recently under fire regarding their treatment of employees, in particular Hideo Kojima, the director of Metal Gear Solid V: The Phantom Pain. Konami has recently stated that their future goals include a focus on mobile and digital sales, instead of larger, more expensive titles.
"We will pursue mobile games aggressively. Our main platform will be mobiles. Following the pay-as-you-play model of games like Power Pro and Winning Eleven with additional content, our games must move from selling things like “items” to selling things like “features.” stated Konami President Hideki Hayakawa.
Konami has recently begun to licence out their IP to other companies, starting with Nintendo and the Hudsonsoft game Momotaru Denetsu.
So what do you think about this financial report? Leave your comments below.