Koei Tecmo saw a 26% drop in operating profit during the past nine months, but its full-year forecast remains unchanged as new releases perform strongly

Ninja Gaiden developer Koei Tecmo has published its consolidated earnings report for the first three quarters of the fiscal year ending March 31, 2025 (as reported by GameBiz). According to the report, during the period between April and December 2024, Koei Tecmo saw net sales decrease by 14% and operating profit decrease by 25.8% compared to last year. 

The main cause for the losses was a lack of new releases – in the same period last year, Koei Tecmo released three full-price titles and three new mobile titles. Conversely, the company only launched two full-price games and relied heavily on its existing catalogue from April to December 2024, resulting in less revenue. 

On the other hand, Koei Tecmo saw its non-operating profit (profit not coming from video games) reach a record high thanks to its smart investment decisions, which the company is famous for. 

Metrics for the nine-month-period between April and December 2024 are as follows: 

Net sales: 52.57 billion yen (down 14% year on year) 
Operating profit: 15.075 billion yen (down 25.8% year on year) 
Ordinary profit: 33.144 billion yen (down 2% year on year) 
Net profit: 25.161 billion yen (up 3.6% year on year) 

However, despite the dip in operating profit throughout the better part of the fiscal year, Koei Tecmo has left its full-year earnings forecast unchanged in light of the strong sales performance of new releases in the fourth quarter. The company released Dynasty Warriors: Origins on January 17, and while we don’t have official sales figures for the title yet, it launched to glowing reviews and has consistently been at the top of Steam’s top-seller list, causing Koei Tecmo’s stock price to rebound. 

Koei Tecmo’s full-year forecast for the fiscal year ending March 31, 2025 is as follows: 

Net sales: 90 billion yen (up 6.4% year on year) 
Operating profit: 30 billion yen (up 5.3% year on year) 
Ordinary profit: 40 billion yen (down 12.6% year on year) 
Net profit: 30 billion yen (down 11.2% year on year)