GGRAsia – Konami slot division quarterly revenue down, profit up

Konami slot division quarterly revenue down, profit up

Aug 01, 2018 Newsdesk Japan, Latest News, Top of the deck

Konami Corp’s gaming and systems division reported net revenue of approximately JPY6.4 billion (US$57.4 million) for the three months ended June 30, 2018, down 1.9 percent in comparison with the previous year. Operating income for the segment rose by 7.9 percent year-on-year to JPY0.9 billion, the Japanese conglomerate said in a press release on Tuesday.

“Total revenue from this segment decreased because the number of installations of new slot machines decreased,” said Konami. The company said additionally that the segment’s results were negatively impacted by the appreciation of the Japanese yen against the U.S. dollar during the reporting period.

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

The Japanese conglomerate said that during its fiscal first quarter it expanded the number of installations of its Concerto video slot product line in the North America, Asia and Oceania markets, including its curved-screen cabinet Concerto Crescent and the single tall screen cabinet Concerto Stack.

“Sales of the long-selling Podium series were also stable in the Central and South American markets,” said the firm in its Tuesday release.

Konami said additionally that it continued to install in the North American and Asian markets its horserace betting station with a model track, dubbed Fortune Cup, “which leverages on our expertise and technology accumulated through Konami group’s amusement machines”.

It added: “We continue to make efforts to enhance our sales focusing on the Concerto series, a key product in our video slot machine series, as well as to enhance product range, including introduction of the latest cabinet, Concerto Opus, which features a large, 65-inch display.”

Besides casino slot gaming, the Japanese conglomerate is also involved in the Japan-focused pachinko game segment, digital entertainment – including video games and mobile games – and health and fitness.

Group wide, Konami reported revenue of approximately JPY58.5 billion for the three months to June 30, up 4.9 percent from the prior-year period. Net income for the period declined 2.8 percent year-on-year to nearly JPY8.3 billion, according to Tuesday’s release.

On Tuesday, the Japanese conglomerate reiterated its business performance forecast for the fiscal year ending March 31, 2019. The company said it expected group-wide revenue of JPY250 billion, up 4.4 percent year-on-year, and net profit of JPY32 billion, an increase of 4.9 percent.

Commenting on Konami’s results, Japanese brokerage Nomura said the company was still taking “a wait-and-see stance” about entering the casino business in Japan. “It said that were it to make a move as an operating company, it would probably be around 2022-23,” stated Nomura.

Japan’s parliament passed on July 20 the long-awaited Integrated Resort (IR) Implementation Bill, a second of two pieces of legislation that will lead to the establishment of a domestic casino industry. A number of industry executives expect the first casino licences to be issued in around the year 2020, with the first resorts to open for operation in circa 2025.