Koei Tecmo Holdings (3635) Q1 2025 earnings summary

Executive summary

• FY24 Q1 sales declined 3.8% year-over-year to ¥17,607 million, with operating profit down 23.8% to ¥5,723 million and net profit up 29.2% to ¥13,638 million.

• Ordinary profit reached a record Q1 high at ¥18,703 million, up 27.3% year-over-year, driven by non-operating income.

• Decline in sales and operating profit attributed to lack of new mobile titles and increased in-house mobile operation costs.

• No major new title launches; sales mainly from existing and back-catalog titles.

Financial highlights

• Sales decreased 3.8% year-over-year and 24.9% sequentially from the previous quarter.

• Operating profit fell 23.8% year-over-year and 30.0% sequentially.

• Gross profit for Q1 FY2024 was ¥10,766 million, down from ¥11,999 million year-over-year.

• Basic EPS rose to ¥43.18 from ¥33.46 year-over-year; diluted EPS increased to ¥40.50 from ¥31.24.

• Comprehensive income for Q1 FY2024 was ¥19,202 million, up from ¥17,200 million year-over-year.

Outlook and guidance

• FY24 full-year sales forecast unchanged at ¥90,000 million, with operating profit of ¥30,000 million and net profit of ¥10,000 million.

• Full-year FY2025 net sales forecast at ¥90,000 million (up 6.4% year-over-year), operating profit at ¥30,000 million (up 5.3%), and net income at ¥30,000 million (down 11.2%).

• Conservative plan based on repeat sales and steady online/mobile performance; major releases concentrated in the second half.

• Basic EPS for the full year projected at ¥95.04.

• Planned exchange rate: 145 yen/USD.