GGRAsia – Konami slot division quarterly revenue, income plummets

Konami slot division quarterly revenue, income plummets

Aug 02, 2019 Newsdesk Japan, Latest News, Top of the deck

Konami Holdings Corp’s gaming and systems division reported revenue of approximately JPY6.83 billion (US$63.8 million) for its fiscal first quarter ended June 30, up 7.3 percent compared to the prior-year period.

Operating income for the segment however fell by nearly 82 percent year-on-year to about JPY159 million, said on Thursday the Japanese entertainment industry conglomerate.

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

For the three months ended June 30, there had been a “year-over-year absence” of any large deliveries of “high-margin product, as well as increased cost” from a larger installed base of slot machines “under participation agreements,” said Konami in a statement accompanying its quarterly results.

The company said that its “Concerto” cabinet products continued to drive sales in the North American markets in the three months to June 30. The product also launched in Europe and Latin American markets during the reporting period, it added.

Konami stated that the growing participation in installed-based products was driven by an “expanding game portfolio” for the Concerto Opus cabinet. The Concerto Opus has a 65-inch 4K Ultra HD display, dual cup holders, dual spin buttons, an illuminated multi-colour button dash and an optional USB charger.

The company said additionally that its racing game “Fortune Cup” and casino management system “Synkros” had been well received at this year’s edition of the Global Gaming Expo (G2E) Asia, a casino trade show that took place in Macau in May.

Matthew Loon, product and marketing manager for Konami Australia, told GGRAsia during an interview at G2E Asia that the company expected to have “several [more units] installed by the end of the year in Macau”. As of May, the company had installed two units at properties of Macau casino operator Wynn Macau Ltd.

In the commentary in its earnings release on Thursday, Konami said it would continue to make efforts to enhance product range and sales of slot machines, particularly the Concerto cabinet series and the upright cabinet KX 43TM.

Group wide, Konami reported revenue of approximately JPY56.46 billion for the three months ended June 30, down 3.4 percent from the prior-year period. Net income for the period felly by 12 percent year-on-year, to JPY7.28 billion.

Besides casino slot gaming, the Japanese conglomerate is also involved in several other segments: the Japan-focused pachinko game market, digital entertainment – including video games and mobile games, and sports, formerly known within the company as ‘health and fitness’.