Koei Tecmo Holdings (3635) Q1 2026 earnings summary

Executive summary

• Q1 FY25 net sales were ¥14.8B, down 15.9% year-over-year, with significant declines in sales and profits mainly from weaker entertainment business and no major new releases.

• Operating profit declined 37.5% to ¥3.57B, and profit attributable to owners of parent fell 55.5% to ¥6.07B.

• Comprehensive income decreased 14.1% year-over-year to ¥16.5B.

• The company maintains its long-term vision to become a top 10 global digital entertainment company, focusing on pipeline growth, sales capability, and cost efficiency.

• The 4th Medium-Term Management Plan (MTMP4) emphasizes human capital investment, global expansion, and a balanced portfolio.

Financial highlights

• Q1 FY25 consolidated sales were ¥14.8B, down 15.9% year-over-year; operating profit fell 37.6% to ¥3.57B.

• Ordinary profit dropped 53.1% to ¥8.77B, and net profit declined 55.5% to ¥6.07B compared to Q1 FY24.

• Gross profit for the quarter was ¥8.01B, down from ¥10.77B year-over-year.

• Basic earnings per share for the quarter were ¥19.23, compared to ¥43.18 in the prior year.

• Total assets increased to ¥243.4B as of June 30, 2025, from ¥209.8B at March 31, 2025.

Outlook and guidance

• FY25 full-year forecast remains unchanged: sales of ¥92B, operating profit of ¥31B, and net profit of ¥27B, despite Q1 underperformance.

• Full-year net sales forecast is up 10.6% year-over-year, but operating profit is projected down 3.5% and net profit down 28.2%.

• New title launches are concentrated in the second half; forecasts include unannounced titles and assume no major extraordinary expenses.

• Dividend per share forecast is ¥43, with a payout ratio of about 50%.

• Basic earnings per share for the full year are expected to be ¥85.49.