Today, Koei Tecmo announced its financial results for the first nine months of the fiscal year 2025, related to the period between April and December.
According to the provided documents, sales were 51,729 million yen, down down 1.6% year-on-year. Operating income was 14,571 million yen (down 3.3% year-on-year).
The Entertainment Business segment, which focuses on video games, recorded 47,543 million yen in sales and 14,148 million yen in operating profits, down from 48,794 million yen and 14,867 million yen, respectively, recorded in the previous year.
That being said, a further breakdown is interesting, as console and PC games actually grew year-on-year, with the decline basically entirely focused in the field of mobile games.
That being said, Koei Tecmo is releasing major games in Q4, including Nioh 3, so its full-year forecast remains unchanged with a 10.6% increase in sales and a 3.5% decline in operating profits.
Interestingly, we get an update about the future strategy for the Entertainment Business, with console and PC games identified as the growth drivers, while mobile games should generate stable revenue.
To drive growth in PC and console games, the plan is as follows.
- Increase the number of titles.
- improve the quality and increase the probability of hits per title.
- Balance challenges and stable earnings.
- Adequately allocate both major titles and low-risk titles.
The following two slides are interesting as they illustrate the overall strategy until 2033 and beyond, with the current Medium-term management plan dedicated to “creating a foundation for growth.”
Koei Tecmo is the first major publisher that we track to publish its financial results this quarter, so you can expect plenty more across the upcoming days and weeks.
If you’d like to compare the results with historical data, you can check out the announcement for the previous quarter, shared in October.
