GGRAsia – Konami annual profit up 62pct on slight revenue increase

Konami annual profit up 62pct on slight revenue increase

May 13, 2021 Newsdesk Industry Talk, Latest News

Japanese conglomerate Konami Corp posted a net profit of just above JPY32.26 billion (US$294.2 million) for the 12 months ended March 31, 2021, up 62.2 percent from the previous year. That was on revenue of JPY272.66 billion for the period, an increase of 3.7 percent compared with the previous year, according to a Thursday press release.

Group-wide operating profit for the period was JPY36.55 billion, an 18.0-percent increase year-on-year.

The company said revenues of some of its business segments were “impacted” from temporary closures due to restrictions linked to efforts to contain the further spread of the Covid-19 pandemic.

“However, strong performance of products and services in the digital entertainment business, including mobile games, computer and video games, and card games led to an increase in revenues and business profit,” it stated.

The group’s gaming and systems division – which includes supply of casino equipment – reported net revenue of approximately JPY16.6 billion for the fiscal year ended March 31, down 41.4 percent in comparison with the previous year. The segment recorded a loss of JPY2.1billion, compared to a JPY1.8-billion profit the year before.

In Thursday’s presentation, Konami said it “will take time” for the global gaming market to fully recover under what it termed a “severe business environment.”

The firm launched in late 2020 a new slot machine, the “Dimension 49J”, featuring a ‘J’ curve display. The new product received “strong orders for shipment,” it added.

Konami said additionally that it had made “multiple installments” of tis casino management system Synkros during the period, “with further installments planned” for this year.

In the gaming segment, Konami operates outside Japan via Konami Australia Pty Ltd and U.S.-based Konami Gaming Inc. The Japanese conglomerate is also involved in the Japan-focused pachinko games segment, digital entertainment – including video games and mobile games – and sports.

In its Thursday release, Konami said its digital entertainment segment recorded revenue of JPY204.2 billion, up 33.1 percent year-on-year. Profit for the segment rose by 70 percent, to JPY73.4 billion.

A dividend of JPY50.50 per share was declared as a year-end dividend for the 12 months to March 31. Including the previously-announced interim dividend, the company paid a total annual dividend of JPY73.00 per share, up 62.2 percent from the previous fiscal year.