Koei Tecmo Holdings (3635) investor relations material

Executive summary

• Q3 FY25 saw a slight year-over-year decline in sales and profits, mainly due to lower performance in the online/mobile entertainment segment, while costs remained stable overall.

• Net sales for the nine months ended December 31, 2025, were ¥51,729 million, down 1.6% year-over-year.

• Major new console and PC titles were released, boosting revenue in that segment, but mobile revenue declined due to weaker performance of existing titles.

• The amusement and real estate segments showed growth, with amusement benefiting from strong existing store performance and real estate aided by concert hall contributions.

• Comprehensive income surged 52.0% year-over-year to ¥56,359 million, driven by significant gains in other comprehensive income.

Financial highlights

• Q3 FY25 consolidated sales were ¥51,729 million, down ¥841 million year-over-year.

• Operating profit was ¥14,571 million (28.2% margin), down ¥504 million year-over-year.

• Ordinary profit was ¥31,099 million (60.1% margin), down ¥2,045 million year-over-year.

• Net profit was ¥23,780 million (46.0% margin), down ¥1,381 million year-over-year.

• Gross profit for the nine months was ¥29,058 million, slightly down from ¥29,843 million year-over-year.

Outlook and guidance

• Full-year net sales forecast for fiscal year ending March 31, 2026, is ¥92,000 million, up 10.6% year-over-year.

• Operating profit is projected at ¥31,000 million, a 3.5% decrease year-over-year.

• Profit attributable to owners of parent is expected to decline 28.2% to ¥27,000 million.

• Multiple new titles, including major releases, are scheduled for Q4, expected to drive revenue.

• No large temporary expenses are anticipated; exchange rate assumption is 140 yen per dollar.