Koei Tecmo Holdings raised its earnings forecast for the first half of the fiscal year, citing cost reductions and stronger-than-expected investment returns alongside steady sales of older game titles.
The Tokyo-based developer now projects net income of ¥13.2 billion ($88 million) for the six months through September, more than double its initial estimate of ¥6 billion. Operating profit is expected to reach ¥7.8 billion, up 56% from the company’s earlier forecast, while ordinary profit nearly tripled to ¥17.5 billion.
The revisions stem from increased digital sales of existing franchises and lower-than-planned spending on outsourcing and advertising. Koei Tecmo’s investment division, which has become a significant earnings contributor, delivered returns that exceeded management’s projections as financial markets rallied.
Revenue for the period was adjusted upward by ¥1 billion to ¥31 billion, a modest 3.3% increase from the original target.
Despite the improved first-half performance, the company maintained its full-year guidance, pointing to a back-loaded release schedule with multiple new titles slated for the second half. Management cited uncertainty around global economic conditions and market volatility as reasons for keeping annual projections unchanged.
