Koei Tecmo Holdings (3635) Q4 2025 earnings summary

Executive summary

• FY24 profit exceeded the previous year and forecasts, driven by new title releases.

• Sales declined 1.7% year-over-year to 83,150 million yen, but operating profit rose 12.7% to 32,119 million yen.

• Net profit increased 11.4% year-over-year to 37,628 million yen.

• Announced a new management structure and succession plan effective June 2025.

• Comprehensive income declined 36% to 30,740 million yen.

Financial highlights

• Operating profit margin improved to 38.6% in FY24 from 34% in FY23.

• Ordinary profit rose 9.3% year-over-year to 49,988 million yen.

• Dividend per share for FY24 set at 60 yen, with a payout ratio of 50.4%.

• Cash and cash equivalents at year-end more than doubled to 22,552 million yen.

• Basic earnings per share rose to 119.14 yen from 107.06 yen year-over-year.

Outlook and guidance

• FY25 sales forecasted to rise 10.6% to 92,000 million yen, with operating profit expected to be 31,000 million yen (-3.5%).

• Net profit projected to decrease 28.2% to 27,000 million yen.

• Dividend per share forecasted at 43 yen, maintaining a 50% payout ratio.

• Overseas sales expected to increase, especially in North America (+47%) and Europe (+86%).

• Cumulative operating profit target of over 100 billion yen over three years, with an annual margin of 30%+.