GGRAsia – Konami gaming segment rev up 40pct in half to Sept 30

Konami gaming segment rev up 40pct in half to Sept 30

Nov 03, 2022 Newsdesk Japan, Latest News, Top of the deck

Konami Holdings Corp said on Wednesday that revenue in its gaming and systems division – including casino equipment – rose by 39.5 percent year-on-year in the six months to September 30. Such revenue was just above JPY17.12 billion (US$116.1 million), compared to JPY12.27 billion in the prior-year period.

The gaming segment recorded a profit of JPY2.0 billion in the reporting period, up 9.5 percent from a year earlier.

The gaming and systems division of the Japanese entertainment conglomerate’s business includes the supply of casino slot machines and casino floor management systems.

In the casino gaming segment, Konami operates outside Japan via Konami Australia Pty Ltd, and U.S.-based Konami Gaming Inc.

Konami Holdings said on Wednesday that what it termed “the operation” in casino facilities in North America and Australia “returned to… pre-Covid-19 levels” during the six-month period, though it didn’t specify if that was generic for the industry or for its own portion of such business. “Although other markets in some countries and regions are still affected by the Covid-19 pandemic, the market as a whole is on the road to recovery,” it added.

But the firm noted that disruptions to global supply chains “are resulting” in issues, “such as rising costs” for machine parts and “delivery delays of parts and materials”.

Konami Holdings is also involved in the Japan-focused pachinko games segment, digital entertainment – including video games and mobile games – and sports. Aggregate revenue for the period rose 6.4 percent year-on-year, to nearly JPY148.36 billion.

Group-wide profit for the six months to September 30 stood at JPY19.85 billion, down 28.0 percent from the prior-year period. The company said its profit performance was negatively impacted by “rising energy costs” and “amortisation of product costs” due to new title releases and promotional efforts.

The company’s board declared an interim dividend of JPY62.0 per share, to be paid on November 25.