GGRAsia – Konami slot division revenue down on fewer installations

Konami slot division revenue down on fewer installations

May 11, 2018 Newsdesk Japan, Latest News, Top of the deck

Konami Corp’s gaming and systems division reported net revenue of approximately JPY29.6 billion (US$271.0 million) for the 12 months ended March 31, 2018, down 5.2 percent in comparison with the previous year. Operating income for the segment fell 10 percent year-on-year to nearly JPY4.4 billion, the Japanese conglomerate said in a press release on Thursday.

“Total revenue from this segment decreased because the number of installations of new slot machines decreased [because the] opening of new casino facilities were limited and a part of installations of casino management systems were postponed to the fiscal year ending March 31, 2019,” said the company.

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

The firm said that during the reporting period it expanded installations of its Concerto video slot product line in the North American market, with positive performances of its new Concerto Crescent and Concerto Stack cabinets.

“We also focused on sales of the long-selling Podium series, which has a richly diverse product line-up and continues to receive favourable reviews in the Central and South American, African and Asian markets,” said Konami.

The Japanese conglomerate said additionally that it would continue to make efforts to promote its Concerto Opus product, the firm’s latest cabinet. “In addition, we intend to focus on [other] products, including introduction of multi-station machines, such as Fortune Cup, a horserace betting station with a model track, and Crystal Cyclone, a ball-drawing game, and installation of features that reflect player skill levels,” stated the company.

It added: “We continue to make efforts to enhance product appeal, including actively expansion of the sales and the development of new functions.”

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 JPY239.5 billion for the fiscal year ended March 31, up 4.2 percent from the previous year. Net income jumped 17.6 percent year-on-year to JPY30.5 billion, according to Thursday’s filing.

A dividend of JPY38 per share was declared as a year-end dividend for the 12 months to March 31. Including the previously announced interim dividend of JPY30 per share, the company paid a total annual dividend of JPY68 per share, up 17.2 percent from the previous fiscal year.

On Thursday, the gaming manufacturer also released a business performance forecast for its 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.

Konami also said it intends to award commemorative dividends in the amount of JPY50 per share for the year ending March 31, 2019, “to celebrate the 50th anniversary of its founding”.