[Financial results]Konami’s business profit decreased by 33.7% and net profit decreased by 28.0% in the April-September period of 2010!Amortization of production costs for new titles and promotion costs become a burden

Konami Group Co., Ltd.
Summary of financial results for the second quarter of the fiscal year ending March 31, 2023[IFRS](consolidated)

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(1) Overview of the second quarter consolidated cumulative period
During the second quarter of the fiscal year ending March 31, 2019, the spread of the new coronavirus infection appears to have calmed down, and expectations are rising for the normalization of economic activities. On the other hand, the outlook remains uncertain due to factors such as the prolonged situation in Ukraine, exchange rate fluctuations due to the rapid depreciation of the yen, and soaring resource prices.
Under these circumstances, the Group’s operating results for the second quarter consolidated cumulative period under review were as follows:Net sales reached a record high for the second quarter due to the successive introduction of new titles of mainstay content and the impact of the weaker yen. On the other hand, profits were affected by the amortization of production costs immediately after the release of new titles, the burden of promotion costs, and rising energy costs.

As a result of the above, net sales for the second quarter consolidated cumulative period were 148,359 million yen (up 6.4% year-on-year), and business profit was 25,611 million yen (down 33.7% year-on-year). ), operating profit was 25,396 million yen (down 35.1% year-on-year), profit before tax was 27,479 million yen (down 28.9% year-on-year), attributable to owners of the parent company. Net income for the quarter was 19,847 million yen (down 28.0% year-on-year).

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(Digital Entertainment Business)
In the entertainment market, the future development of game content is expected due to the increasing performance of various devices such as mobile terminals and home game consoles and the spread of next-generation communication systems. In addition, the way games are enjoyed is diversifying, such as e-sports, where games are viewed as sports competitions, and gameplay videos, which are attracting attention and expanding the fan base. Furthermore, awareness of the Metaverse, a virtual space on the Internet, is increasing, and its high affinity with games is attracting attention.
Under these circumstances, as a new initiative of this business, we have started distribution of “eFootball™ 2023” on multiple devices. By adding new teams and players that can be used and pursuing improved operability, many customers are enjoying it.In home video games, “Teenage Mutant Ninja Turtles: The Cowabunga Collection” was released, and got off to a strong start mainly in Europe and the United States. As for mobile games, we started distribution of “Yu-Gi-Oh! Cross Duel”. It has received high acclaim as a card game with a new feel that allows four players to play simultaneously.
As an ongoing effort,“Professional Baseball Spirits A (Ace)” performed well. “Yu-Gi-Oh! Master Duel” continues to receive favorable reviews from customers for encouraging changes in the game environment through the aggressive addition of new cards and changes in regulations. In card games, “Yu-Gi-Oh! Trading Card Game” continued to perform well, and sales increased globally.With the addition of customers who have started playing “Yu-Gi-Oh!
In esports, at “eFootball™ 2022”, all players were able to participate, and the “eFootball™ Championship Open 2022” was held to determine the No. 1 player for each platform. “Yu-Gi-Oh Duel Links” held the main battle of “KC Grand Tournament 2022”, a large-scale online tournament. Both competitions were live-streamed to the whole world, showing great excitement.
In addition, the amortization of production costs and the burden of promotion costs due to the sequential introduction of new titles of main content in 2022 resulted in a decrease in profit for the first half of the current consolidated cumulative period.
As a result of the above, sales in this business for the second quarter consolidated cumulative period were 102,703 million yen (up 4.1% year-on-year), and business profit was 23,503 million yen (down 34.4% year-on-year). )have become.

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