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Konami raises forecasts as profits rise 53% to $427m

Konami has raised its forecasts for the financial year following a strong nine-month period in which revenues rose 11% and profits were up 53%.

For the nine months ending December 31, 2023, the Japanese publisher reported business profit up ¥62.8 billion ($427 million, up 53% year-on-year) and operating profit of ($405.2 million, up 59%).

Here’s what you need to know:

The numbers

Revenue: ¥253.1 billion ($1.72 billion, up 11.6% year-on-year)
Business profit: ¥62.8 billion ($427 million, up 53%)
Operating profit: ¥59.6 billion ($405.2 million, up 59%)

Digital Entertainment

Revenue: ¥173.4 billion ($1.2 billion, up 10.8%)
Business profit: ¥55.9 billion ($380.1 million, up 49%)

The highlights

Konami’s Digital Entertainment segment, which handles its video games business, stands as the biggest contributor to the publisher’s success, accounting for almost 70% of the company’s total revenue.

In the most recent quarter, this division was boosted by the launches of Metal Gear Solid: Master Collection Vol.1, which features the first three Solid titles plus the two original Metal Gear games, and the Japan-only launch of Momotaro Dentetsu World: Chikyuwa Kiboude Mawatteru.

The latter is a popular digital board game series, with this new Switch title selling more than one million copies between its November 16 launch and the end of the year. In fact, Famitsu data shared with shows it was the seventh biggest selling retail game in Japan for the whole year.

Konami also noted strong performances from eFootball 2024 – the esports-focused successor to the Pro Evolution Soccer series – and Professional Baseball Spirits.

Other divisions of Konami have also fared well so far this financial year, with strong growth from its Amusement segment. This business more than doubled its profits year-on-year to ¥2.2 billion ($15 million) and saw revenues rise 55% to ¥16.3 billion ($110.8 million).

As a result, Konami is raising its forecasts for the current financial year.

Where it was originally expecting full-year revenues to reach ¥328 billion ($2.23 billion), its revised guidance now expects ¥343 billion ($2.33 billion) – up 15% from the initial forecast, and an increase 28.7% year-on-year.

Similarly, the forecast for business profit has increased 15.5% from ¥63 billion ($428.4 million) to ¥78.5 billion ($533.8 million, up 21.9% YoY), while the guidance for operating profit has been raised 12% from ¥60 billion ($408 million) to ¥72 billion ($489.6 million, up 25.8% YoY).

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