GGRAsia – Konami ups slot machine development spend: firm

Konami ups slot machine development spend: firm

May 11, 2015 Newsdesk Japan, Latest News, Top of the deck

Konami Corp’s gaming and systems division reported net revenue of JPY33.8 billion (US$281.9 million) for the 12 months ended March 31, 2015, up by 7.0 percent in comparison with the previous year. Consolidated operating income for the segment however fell 13.6 percent year-on-year to JPY6.3 billion, the Japanese conglomerate said on Friday.

The company said income in its gaming and systems division decreased mainly due to more investment spending in the North American market. It includes “increases in product approval fees and personnel expenses for product development and maintenance resulting from expansion of the product line-up and enhancement of the services,” the firm said.

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

“In the North American market, the Podium video slot machine … continued to enjoy favourable sales, including introduction into the Central and South American market,” Konami said, adding that it is facing more competition in that market from European manufacturers.

The company also said it has introduced a “richly diverse product line-up” in the Oceania market. “Full-scale marketing is also in progress in Asia, Central and South America and Europe, where we are working on building distribution networks,” Konami said.

Group wide, Konami reported revenue of JPY218.2 billion for the fiscal year ended March 31, up by 0.3 percent from the previous year. Net income jumped 147.3 percent year-on-year to JPY9.5 billion.

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.

A dividend of JPY12.50 per share was approved as a year-end dividend for the 12 months to March 31. Including the interim dividend of JPY8.50 per share paid on November 28, 2014, the company paid an annual dividend of JPY21 per share, down from JPY34 per share a year earlier.

Konami last month delisted from the New York Stock Exchange, saying the listing was “not economically justified”. The company maintains its listings on the Tokyo Stock Exchange and the London Stock Exchange.

On Friday, the firm said it would change its trading name from Konami Corp to Konami Holdings Corp, with effect from October 1, 2015, as it aims “to promote a clear understanding of its position among stakeholders”.