Koei Tecmo Holdings (3635) Q3 2025 earnings summary

Executive summary

• FY24 Q3 YTD sales were ¥52.6B, down 14% year-over-year; operating profit fell 25.8% to ¥15.1B.

• Net profit for FY24 Q3 YTD was ¥25.2B, nearly flat year-over-year; profit attributable to owners of parent increased 3.6% to ¥25.2B.

• Ordinary profit for FY24 Q3 YTD was ¥33.1B, down 2% year-over-year.

• Entertainment segment saw a significant sales and profit decline, while amusement and real estate segments showed modest gains.

• Comprehensive income rose to ¥37.1B from ¥30.1B year-over-year.

Financial highlights

• Operating profit margin for FY24 Q3 YTD was 28.7%, down from 33.2% a year earlier.

• Basic earnings per share for the nine months was ¥79.67, up from ¥76.95 year-over-year.

• Cash flow remains strong, with free cash flow at ¥29.0B for FY24 1st half.

• Net assets increased to ¥195.7B from ¥175.6B at the previous fiscal year-end.

• Gross profit for the period was ¥29.8B, down from ¥39.6B year-over-year.

Outlook and guidance

• FY24 full-year sales forecast unchanged at ¥90B, a 6.4% increase year-over-year.

• Operating profit forecast for FY24 is ¥30B, up 5.3% year-over-year.

• Net profit forecast for FY24 is ¥30B, down 11.2% from FY23.

• Q4 expected to see over five new console/PC titles launched, with no major mobile releases.

• Overseas sales expected to rise 20.9% year-over-year, with strong growth in North America and Europe.