Konami, a leading Japanese company in the gaming industry, published on Thursday, August 6, its financial results for the period between April 1, 2020 and June 30, 2020. The document highlights the 36% increase in the digital entertainment sector; while, the rest of the business segments, had a lower performance than the previous year as a consequence of the COVID-19 crisis.
Here is a summary of the report presented by Konami:
For the three months ended June 30, 2020, due to global restrictions of business activities triggered by coronavirus outbreak, corporate earnings and personal consumption remains slowdown and there are concerns about drastic, prolonged economic downturn.
Under such circumstances, in terms of the business results of Konami Group for the three months ended June 30, 2020, total segment profit increased due to strong performance in the Digital Entertainment business. Meanwhile, measures to avoid coronavirus outbreak, such as temporal closure of amusement facilities worldwide and casino facilities overseas, were taken. Furthermore, due to the temporal closure of sports clubs all over Japan for a certain period in line with state-of-emergency declaration from government and business suspension request from local governments, COVID-19 related loss, mainly fixed costs incurred during the closure period, was recognized and included in the line item “other income and other expenses, net.” As a result, operating profit decreased.
In terms of the consolidated results for the three months ended June 30, 2020, total revenue amounted to ¥52,887 million (a year-on-year decrease of 6.3%), operating profit was ¥6,772 million (a year-on-year decrease of 32.4%), profit before income taxes was ¥6,284 million (a year-on-year decrease of 35.3%), and profit attributable to owners of the parent was ¥4,193 million (a year-on-year decrease of 42.4%).
Digital Entertainment
In the game industry, new experiences through game content are being offered in various ways, including eSports, which is regarded as a form of sports competition and is becoming well-known to a wide range of users and attracting more and more fans.
Under such circumstances, in the global market, as for mobile games in the Digital Entertainment segment, Yu-Gi-Oh! DUEL LINKS has led our revenue and eFootball Winning Eleven 2020 (Known overseas as eFootball PES 2020), which has surpassed 300 million downloads around the world, has received favorable reviews. In the domestic market, PROFESSIONAL BASEBALL SPIRITS A (Ace) has continued to perform strongly and various other titles, such as JIKKYOU PAWAFURU PUROYAKYU, also continued to receive favorable reviews.
In terms of financial performance, total revenue for the three months ended June 30, 2020 in this segment amounted to ¥42,840 million (a year-on-year increase of 36.0%) and segment profit for the three months ended June 30, 2020 amounted to ¥15,309 million (a year-on-year increase of 57.9%).
Amusement
In the amusement industry market, the coronavirus outbreak around the world had an effect on sales of amusement machines and e-amusement participation (revenue share business) due to temporal closure of amusement facilities. Although the facilities have resumed operations since state-of-emergency declaration from government and business suspension request from local governments were lifted, recovery in the number of visitors remains slow. As for the global market, recovery will take more time.
In terms of financial performance, total revenue for the three months ended June 30, 2020 in this segment amounted to ¥2,874 million (a year-on-year decrease of 11.8%) and segment loss for the three months ended June 30, 2020 amounted to ¥240 million (segment profit for the three months ended June 30, 2019 amounted to ¥539 million).
Gaming & Systems
In the gaming market, the measures were taken by governments of various nations to avoid coronavirus outbreak from the beginning of this year. As a result, casino facilities had to be closed temporarily from the middle of March except in some areas and gaming business was forced to almost suspend its operations. Although casino facilities have gradually resumed operations from the end of May in the trend of reopening the economy in phase, market recovery will take more time.
In terms of financial performance, total revenue for the three months ended June 30, 2020 in this segment amounted to ¥2,977 million (a year-on-year decrease of 56.4%) and segment loss for the three months ended June 30, 2020 amounted to ¥925 million (segment profit for the three months ended June 30, 2019 amounted to ¥159 million).
Sports
We continue to enhance our products and services, including delivering original Konami Sports Club exercise videos, which introduce easy exercises that can be done at home and lessons for improving skills, such as for soccer, dancing and golf. We are also focusing on the need to deal with the lack of exercise arising from the voluntary stay-at-home requests and on increasing opportunities to exercise at home. Furthermore, we provided a variety of home fitness equipment via official online shop.
In terms of financial performance, total revenue for the three months ended June 30, 2020 in this segment amounted to ¥4,739 million (a year-on-year decrease of 68.9%) and segment loss for the three months ended June 30, 2020 amounted to ¥1,101 million (segment profit for the three months ended June 30, 2019 amounted to ¥552 million).
Read Konami Financial Results (PDF)
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