Koei Tecmo Q3 FY3/2024 Financial Results (October - December 2023)

Japanese - https://www.koeitecmo.co.jp/ir/docs/ir1_20240129.pdf

FY3/2024 YTD (from April to December 2023)

Summary (Million Yen)

Sales - 61.136 (+23,7% over the same period of FY3/2023)
Operating Profit - 20.316 (-11,7%)
Ordinary Profit - 33.825 (+100,4%)
Net Profit - 24.283 (+80,2%)

Sales amount by region (Million Yen)

Japan - 37.357 | 61,1% of total sales (+46,4% over the same period of FY3/2023)
Overseas - 23.779 | 38,9% of total sales (-0,6%); of which:

N. America - 5.172 | 8,5% of total sales (-2,7%)
Europe - 1.935 | 3,2% of total sales (+15%)
Asia - 16.672 | 27,3% of total sales (-1,5%)

Units sold by region and download numbers / ratios (units; divided by 1.000)

Breakdown on the Sales for Entertainment Segment (Million Yen)

Sales trend for online / mobile

Financial presentation

Japanese - https://www.koeitecmo.co.jp/ir/docs/ir3_20240129.pdf
English - https://www.koeitecmo.co.jp/e/ir/docs/ir3_20240129_e.pdf

Previous threads

FY3/2024

Q1 - https://www.installbaseforum.com/fo...-2024-financial-results-april-june-2023.1829/
Q2 - https://www.installbaseforum.com/fo...awakening-at-150k-atelier-marie-at-110k.2075/

FY3/2023

Q1 - https://www.installbaseforum.com/forums/threads/koei-tecmo-q1-fy3-2023-financial-results.944/
Q2 - https://www.installbaseforum.com/forums/threads/koei-tecmo-q2-fy3-2023-financial-results.1161/
Q3 - https://www.installbaseforum.com/forums/threads/koei-tecmo-q3-fy3-2023-financial-results.1341/
Q4 - https://www.installbaseforum.com/forums/threads/koei-tecmo-q4-fy3-2023-financial-results.1540/

 

[ggx2ac]

The following tables come from my webpage: https://r134x7.github.io/nintendo-earnings-data-and-other-video-game-companies/#/koei-tecmo

Consolidated Earnings:

+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| KOEI TECMO HOLDINGS CO., LTD. | FY3/2024  |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Consolidated Operating Results            |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Data as of December 31st, 2023 |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+

+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Net Sales                  |      YoY% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Quarter |     ¥18,297M |    -1.91% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 2nd Quarter |     ¥21,425M |      +33% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 3rd Quarter |     ¥21,414M |    +45.9% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Half    |     ¥39,722M |   +14.27% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st 3/4     |     ¥61,136M |   +23.66% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
|FY3/2024 Forecast|     ¥95,000M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
###
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Operating Income           |      YoY% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Quarter |      ¥7,506M |   -35.61% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 2nd Quarter |      ¥6,349M |    -4.73% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 3rd Quarter |      ¥6,461M |   +38.26% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Half    |     ¥13,855M |   -24.38% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st 3/4     |     ¥20,316M |   -11.65% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
|FY3/2024 Forecast|     ¥37,500M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
###
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Operating Margin           |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Quarter |       41.02% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 2nd Quarter |       29.63% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 3rd Quarter |       30.17% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Half    |       34.88% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st 3/4     |       33.23% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
|FY3/2024 Forecast|       39.47% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
###
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Net Income                 |      YoY% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Quarter |     ¥10,552M |   +56.33% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 2nd Quarter |      ¥6,243M |     -9.5% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 3rd Quarter |      ¥7,488M | +4478.95% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Half    |     ¥16,795M |   +23.06% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st 3/4     |     ¥24,283M |   +80.18% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
|FY3/2024 Forecast|     ¥31,000M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
###

Sales Per Software Unit:

+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| KOEI TECMO HOLDINGS CO., LTD. | FY3/2024 |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Segment Information - Software Sales     |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Data as of December 31st, 2023 |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Console Package & DL                             |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
|             |             |          | Sales Per |
|             |             | Software |  Software |
|             |       Sales |    Units |      Unit |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Quarter |     ¥5,497M |    1.48M |    ¥3,714 |
|        YoY% |     -36.92% |   -52.1% |    +31.7% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 2nd Quarter |     ¥8,003M |    1.97M |    ¥4,062 |
|        YoY% |     +35.23% |   +23.9% |    +9.13% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 3rd Quarter |     ¥5,023M |    1.62M |    ¥3,101 |
|        YoY% |      +6.08% |  +24.62% |   -14.85% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Half    |    ¥13,500M |    3.45M |    ¥3,913 |
|        YoY% |      -7.74% |  -26.28% |   +25.14% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st 3/4     |    ¥18,523M |    5.07M |    ¥3,653 |
|        YoY% |      -4.36% |  -15.22% |   +12.78% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Package: Including sales for packages, royalty,  |
| commission fees (incl. %-of-completion basis),   |
| and down payment. DL (download) sales: sales for |
| digital copies via PSN/XboxLive/Switch DL/Steam  |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
###

SPECIAL PAGE DATA

Consolidated Earnings 3rd Quarters:

+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| KOEI TECMO HOLDINGS CO., LTD. |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Consolidated Operating Results  |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Data as of December 31st, 2023 |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Net Sales                          |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| FY3/2010 3rd Quarter |     ¥6,637M |
| FY3/2011 3rd Quarter |     ¥8,405M |
| FY3/2012 3rd Quarter |     ¥7,225M |
| FY3/2013 3rd Quarter |     ¥8,482M |
| FY3/2014 3rd Quarter |    ¥10,119M |
| FY3/2015 3rd Quarter |     ¥7,965M |
| FY3/2016 3rd Quarter |     ¥7,383M |
| FY3/2017 3rd Quarter |     ¥7,623M |
| FY3/2018 3rd Quarter |     ¥9,114M |
| FY3/2019 3rd Quarter |     ¥9,399M |
| FY3/2020 3rd Quarter |    ¥10,112M |
| FY3/2021 3rd Quarter |    ¥20,808M |
| FY3/2022 3rd Quarter |    ¥18,107M |
| FY3/2023 3rd Quarter |    ¥14,677M |
| FY3/2024 3rd Quarter |    ¥21,414M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Count             |             15 |
| Sum               |      ¥167,470M |
| Average           |       ¥11,165M |
| Median            |        ¥9,114M |
| Minimum           |        ¥6,637M |
| Maximum           |       ¥21,414M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Operating Income                   |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| FY3/2010 3rd Quarter |    ¥-1,201M |
| FY3/2011 3rd Quarter |       ¥721M |
| FY3/2012 3rd Quarter |     ¥1,091M |
| FY3/2013 3rd Quarter |     ¥1,597M |
| FY3/2014 3rd Quarter |     ¥1,930M |
| FY3/2015 3rd Quarter |     ¥1,565M |
| FY3/2016 3rd Quarter |     ¥1,460M |
| FY3/2017 3rd Quarter |       ¥751M |
| FY3/2018 3rd Quarter |     ¥2,838M |
| FY3/2019 3rd Quarter |     ¥2,417M |
| FY3/2020 3rd Quarter |     ¥2,990M |
| FY3/2021 3rd Quarter |    ¥10,920M |
| FY3/2022 3rd Quarter |    ¥10,704M |
| FY3/2023 3rd Quarter |     ¥4,673M |
| FY3/2024 3rd Quarter |     ¥6,461M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Count             |             15 |
| Sum               |       ¥48,917M |
| Average           |        ¥3,261M |
| Median            |        ¥1,930M |
| Minimum           |       ¥-1,201M |
| Maximum           |       ¥10,920M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Net Income                         |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| FY3/2010 3rd Quarter |      ¥-544M |
| FY3/2011 3rd Quarter |       ¥480M |
| FY3/2012 3rd Quarter |       ¥254M |
| FY3/2013 3rd Quarter |     ¥2,058M |
| FY3/2014 3rd Quarter |     ¥2,601M |
| FY3/2015 3rd Quarter |     ¥2,327M |
| FY3/2016 3rd Quarter |     ¥2,769M |
| FY3/2017 3rd Quarter |     ¥2,201M |
| FY3/2018 3rd Quarter |     ¥3,227M |
| FY3/2019 3rd Quarter |     ¥2,176M |
| FY3/2020 3rd Quarter |     ¥3,787M |
| FY3/2021 3rd Quarter |    ¥10,357M |
| FY3/2022 3rd Quarter |    ¥10,151M |
| FY3/2023 3rd Quarter |      ¥-171M |
| FY3/2024 3rd Quarter |     ¥7,488M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Count             |             15 |
| Sum               |       ¥49,161M |
| Average           |        ¥3,277M |
| Median            |        ¥2,327M |
| Minimum           |         ¥-544M |
| Maximum           |       ¥10,357M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+

Sales Per Software Unit 3rd quarters:

+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| KOEI TECMO HOLDINGS CO., LTD.         |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Segment Information - Software Sales  |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Data as of December 31st, 2023 |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Console Package & DL                                      |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
|                      |             |          | Sales Per |
|                      |             | Software |  Software |
|                      |       Sales |    Units |      Unit |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| FY3/2020 3rd Quarter |     ¥4,552M |    1.56M |    ¥2,918 |
| FY3/2021 3rd Quarter |    ¥11,952M |    5.11M |    ¥2,339 |
| FY3/2022 3rd Quarter |     ¥7,412M |    2.05M |    ¥3,616 |
| FY3/2023 3rd Quarter |     ¥4,735M |     1.3M |    ¥3,642 |
| FY3/2024 3rd Quarter |     ¥5,023M |    1.62M |    ¥3,101 |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Count                |           5 |        5 |         5 |
| Sum                  |    ¥33,674M |   11.64M |   ¥15,616 |
| Average              |     ¥6,735M |    2.33M |    ¥3,123 |
| Median               |     ¥5,023M |    1.62M |    ¥3,101 |
| Minimum              |     ¥4,552M |     1.3M |    ¥2,339 |
| Maximum              |    ¥11,952M |    5.11M |    ¥3,642 |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Package: Including sales for packages, royalty,      |
| commission fees (incl. %-of-completion basis), and   |
| down payment. DL (download) sales: sales for digital |
| copies via PSN/XboxLive/Switch DL/Steam              |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+

 

[Lelouch0612]

Anything of note ?

 

[Undead Warrior]

Those are certainly some impressive numbers. I'm unfamiliar with the mobile market, what did KT release that boosted them this much?

 

[Astrogamer]

Those are certainly some impressive numbers. I'm unfamiliar with the mobile market, what did KT release that boosted them this much?

They list it on the slide. They released both Nobunaga's Ambition Shutsujin (Nobunaga GO basically) and Atelier Resleriana in end of August and September respectively. Atelier has maintained a strong presence in the market since launch. Nobunaga's Ambition Hadou also had anniversary events which made its revenue spike through December. According to Sensor Tower, Shutsujin has been grossing about $3 million a month, Atelier has a bit of a swing but grossed around $15 million over those 3 months and Hadou spiked from $4-5 million a month to $7 million.

 

[Ptsousa]

Atelier has a bit of a swing but grossed around $15 million over those 3 months

That's a nice performance for Resleriana! Let's see how the Steam version fares,

 

[KR_EP]

Company is in a healthy spot financially that it can shrug off a quiet first 9 months in the console/PC space. Jury out on the 5 million sales ambition if late March debut for Rise of the Ronin is meant to lead the charge. Mixture of open world influences with prior Team Ninja titles felt jarring at times but shall wait & see. Very important the (eventual) PC version is well optimised.

Meanwhile its smartphone business continues to drive the surge these last few years with new releases in Japan being responsible for Year on Year (YoY) growth while Asia remains steady. Can do much better internationally on console/PC line with new & back catalogue titles (belated Groundhog Day?). First things first, need to improve propriety tech & PC ports from launch.

Anything of note ?

TLDR: No. OP has the key details, sales up YoY, exclusively due to Japan (page 6), from smartphone/social titles to be specific (page 8), with the events on page 9 covered by @Astrogamer below:

They list it on the slide. They released both Nobunaga's Ambition Shutsujin (Nobunaga GO basically) and Atelier Resleriana in end of August and September respectively. Atelier has maintained a strong presence in the market since launch. Nobunaga's Ambition Hadou also had anniversary events which made its revenue spike through December. According to Sensor Tower, Shutsujin has been grossing about $3 million a month, Atelier has a bit of a swing but grossed around $15 million over those 3 months and Hadou spiked from $4-5 million a month to $7 million.

Operating Profit down while Ordinary & Net Profit are up year on year. The gap narrowing in the project end of year results (unchanged despite the delay for ROTK8 Remake out of Q4) suggests these gains have already been booked. However based on the Quarterly Consolidated Statements of Income on page 5 of the Financial Highlights it is in large part due to Non-Operating Profits being up YoY from 17,727 to 29,341 million yen over 3 quarters, primarily Gains on the Sale of Investment Securities. As for what that means, TLDR: Monopoly Money!

FY2023 1st Quarter Financial Highlights up from 457 - 4,871 million yen
FY2023 2nd Quarter Financial Highlights up from 1,701 to 6,750 million yen
FY2023 3rd Quarter Financial Highlights up from 1,701 to 9,407 million yen

Far more interest is looking over the highlights* from the 4Gamer & Famitsu 2024 ambitions combined with the January 26 publication of the Integrated Report 2023 to join the dots & read the tea leaves. Might even read between the business jargon lines in some of the staff profiles. *I will auto-translate the remainder for the KOEI TECMO Output Strategy thread later.

Spoiler: Gematsu Translated Highlights

4Gamer​

Tomohiko Sho (Known for Dynasty Warriors 3 to 6, Dragon Quest Heroes: The World Tree’s Woe and the Blight Below, Dragon Quest Heroes II, Dragon Quest Champions, Fate/Samurai Remnant)
—Ambitions for 2024
“I see 2024 as an important year for delivering the best games to everyone over the next few years. And I hope to make it a year where I can announce such games, so I ask that you please look forward to it with anticipation.”

Akihiro Suzuki (Known for Dynasty Warriors series)
—Ambitions for 2024
“I am very sorry that we were unable to release any new information regarding the Dynasty Warriors series in 2023. We will do everything we can to be able to do so in 2024, so please continue to give us your support.”

Famitsu​

Mei Erikawa (Known for Ruby Party brand)
—Ambitions for 2024
“In 2024, the Ruby Party brand will celebrate its 30th anniversary. We hope to be able to announce various initiatives and new projects, so please look forward to it!”

Tomohiko Sho (Known for Dynasty Warriors 3 to 6, Dragon Quest Heroes: The World Tree’s Woe and the Blight Below, Dragon Quest Heroes II, Dragon Quest Champions, Fate/Samurai Remnant)
—Latest Update
“I’m working hard with my colleagues to be able to announce a title that can be said to be a culmination of my 28 years as a game designer (according to me, at least). I would be grateful if you continue to look out for Omega Force‘s games in 2024!”

Translations via Gematsu

The main takeaway is that some kind of Omega Force announcement (Dynasty Warriors?) can be expected in 2024. There might even be a Succession plan is under ways for Keiko & Yoichi Erikawa. There is mention of wanting to go from a 5 million selling IP to a 10 million one in the long term. Not entirely convinced by these lofty goals as of yet, especially when it has a green lighting process that requires a projected 30% profit margin (page 17). Does this result in games that can break out if staff are being risk too averse to propose ideas that would reach new audiences? Setting that aside, pages 17-18 are definitely worth a read as they provide a useful overview of how major Japanese developer/publishers work from start to finish.

Page 20 highlights the importance of collaborative titles (both internal & external) for its recent growth. Safe to say these will continue (Switch 2?). Pages 26-27 give some insight towards the challenges of working with EA & going back further with its (now closed) Canadian studio. 'Learning from the chaos of the TECMO era' bottom left on page 36 warrants closer investigation.