Koei Tecmo Holdings Co. reported a 12.7% increase in operating profit to ¥32.12 billion ($214 million) for the fiscal year ended March 31, despite a 1.7% decline in sales to ¥83.15 billion ($554 million).
The Japanese video game developer’s growth was propelled by increased sales of self-published titles and strong digital downloads from its back catalog. Cost-cutting measures in its game operations further boosted profitability as the company achieved record-high ordinary profit and net income, reaching ¥49.99 billion and ¥37.63 billion respectively.
Its mainstay Entertainment division, which accounts for 94% of total revenue, saw profits surge 11.2% despite a slight revenue decline. Recent releases including “Sangokushi 8 REMAKE” and “Yumia’s Atelier” performed well, with the latter surpassing 300,000 units globally in record time for the series.
Looking ahead, Koei Tecmo projects a 10.6% revenue increase to ¥92 billion for fiscal 2026 but warns of a 3.5% decline in operating profit to ¥31 billion. Management cited increased development investments and volatile financial markets as potential headwinds, signaling a strategic focus on longer-term growth over immediate profitability.
