Capcom (9697) Q1 2025 earnings summary

Executive summary

• All business segments exceeded internal plans in Q1, despite net sales of ¥29.6 billion (down 32.5% YoY) and net income of ¥9.98 billion (down 45.1% YoY).

• Digital and catalog title sales drove performance, with 9.53 million units sold globally, though fewer new releases led to YoY declines.

• Investments continued in human capital, digital sales, and acquisition of a 3DCG production company.

Financial highlights

• Q1 FY25 net sales were ¥29.5 billion, down 33% YoY; operating income was ¥12.8 billion, down 46% YoY.

• Ordinary income for Q1 was ¥13.4 billion, down 48% YoY, including a ¥620 million FX gain.

• Net income attributable to owners was ¥9.9 billion, down 45% YoY.

• Gross profit for Q1 FY2025 was ¥18.5 billion, down from ¥30.3 billion YoY.

• Cash and cash equivalents at Q1-end were ¥112.7 billion (+2% YoY).

Outlook and guidance

• FY25 guidance: net sales ¥165 billion (+8% YoY), operating income ¥64 billion (+12%), net income ¥46 billion (+6%), EPS ¥109.98.

• Annual dividend forecast is ¥36 (interim ¥18, year-end ¥18) post 2-for-1 stock split.

• Full-year results expected to be weighted toward H2 due to new title releases.