Positive Financial Report Indicates Konami’s Profits Are on the Rise
In light of declining profits in the 2022-2023 fiscal year, Konami’s recent financial report is crucial for predicting the company’s future. The report, which covers the three months leading up to June 30, 2023, brings positive news: profits are once again on the rise.
Increased Profits Across the Board
Konami’s first quarter of the financial year 2024 shows a significant increase in business profits, up by 21.7% compared to the same period last year. Operating profits have also risen by 22.2%. Before income taxes, profits have increased by 16%, and profits attributable to Konami’s owners have risen by 17%.
Identifying the Source
With overall profit growth, it’s important to identify where the money is coming from, considering Konami’s wide range of ventures, including sports, amusement, entertainment, and more. Notably, the report distinguishes between the “Gaming & Systems” category, which refers to slot machines, casino management, and manufacturing, and “Digital Entertainment,” which refers to video games.
Video games have been the primary driver of growth in the past three months, generating ¥48.1 billion ($336 million) in revenue. Profits in the video game sector have increased by 13% year over year to ¥15.1 billion ($105 million). Although casino-related endeavors generated a lower profit of ¥2 billion ($14 million), they saw a remarkable increase of 139.5%.
Interestingly, Gaming & Systems generated more profit for Konami than its sports ventures, despite the latter generating more revenue.
In terms of Digital Entertainment, which includes mobile, card, computer, and video games, Konami attributed its success in part to the strong and sustained performance of eFootball 2023, a cross-platform title. Furthermore, Yu-Gi-Oh Duel Links, the mobile version of a popular card game, celebrated its sixth anniversary this year and has previously contributed to record revenues. Another mobile game in the franchise, Yu-Gi-Oh! Master Duel, amassed 50 million downloads in just nine months. Both of these titles likely played a significant role in the company’s positive financial turnaround.
An Optimistic Turnaround
Konami’s first-quarter profits have increased from ¥14 billion ($98 million) last year to ¥17.2 billion ($120 million) this year. This optimistic turnaround follows a 38% decline in operating profit in the previous financial year.