GGRAsia – Konami slot division rev, profit down year-ended March

Konami slot division rev, profit down year-ended March

May 12, 2017 Newsdesk Industry Talk, Latest News, Top of the deck

Konami Holdings Corp’s gaming and systems division reported revenue of JPY31.25 billion (US$274.8 million) for the year ended March 31, 2017, down by 8.8 percent from the prior-year period. Profit for the segment fell 13.0 percent year-on-year to JPY4.85 billion, the Japanese conglomerate said on Thursday.

“Total revenue and segment profit [in the gaming and systems division] decreased due to an increase in development costs for new products and the effect of exchange rate changes by the sharply rising yen [versus the U.S. dollar],” the firm stated.

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

The firm said sales of video game cabinets during the period “increased mainly in the North American market” due to good performances of the Concerto video game cabinet. The Podium cabinet series “also enjoyed strong sales”, with “favourable reviews in the Central and South American, African and Asian markets” . The firm added its Synkros casino management system also “performed well” in the 12 months ended March 31.

“In addition, we expanded our line-up of premium products and game contents which are subject to a participation agreement (in which profits are shared with casino operators),” Konami stated.

The Japanese conglomerate said it planned to “continue to make efforts to enhance… sales centered on Concerto… and develop our rich product line-up of the Podium series.” It said it would also “actively pursue the distribution of new category products, including skill-based games”.

Group wide, Konami reported revenue of JPY229.92 billion for the year ended March 31, down by 8.0 percent from the prior-year period. Profit for the period however increased by approximately 146.8 percent to JPY25.95 billion, the firm said.

Konami also announced a year-end dividend of JPY41.0, to be paid on June 7, after confirmation from the board of directors. It compared with a JPY12.50 year-end dividend paid in the previous year.

Beside 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.