Koei Tecmo Holdings has revised its second-quarter earnings forecast, projecting higher profits despite a slight dip in sales. The Japanese game developer now expects operating profit to reach 10 billion yen ($66.7 million), up 25% from its previous estimate.
The company attributes the improved outlook to better-than-anticipated repeat sales of packaged games and increased revenue from smartphone titles. Cost reductions also contributed to the rosier projections.
While sales are forecasted to decrease by 7.9% to 35 billion yen ($233.3 million), Koei Tecmo expects significant jumps in other financial metrics. Ordinary profit is projected to surge 53.8% to 20 billion yen ($133.3 million), with net profit rising 50% to 15 billion yen ($100 million).
The revised forecast also includes a substantial increase in earnings per share, now estimated at 47.49 yen compared to the earlier projection of 31.68 yen.
Despite the optimistic short-term outlook, Koei Tecmo is maintaining its full-year forecast through March 2025. The company cites upcoming packaged title releases and uncertainty in global economic conditions as factors in this decision.
