Konami Group Reports 5.5% Group-Wide Revenue Increase through December 2022

The company that caters to the needs of digital and entertainment markets in Asia, Europe, and South America has recorded a group-wide revenue of JPY226.9 billion ($1.76 billion) through December 2022. Its Gaming and Systems segment has also generated the most significant year-on-year growth, reaching JPY27.86 billion ($216 million) during the same period. 

Factors that Influenced Konami’s Recovery

The group’s economic activity has shown signs of recovery as a result of the eased COVID-19 restrictions, the depreciation of the Japanese yen, and the successive launch of core content titles. The positive changes were recorded in spite of the revival of COVID cases, the ongoing war in Ukraine, the constantly spiking resource prices, and the fast-paced exchange rate fluctuations. 

Overall, the company’s casino operations in the Australian and North American markets went back to the pre-COVID-19 levels. At the same time, the product cost amortization, promotion, research, and development costs triggered by the launch of the new titles, and the growing energy costs have all affected Konami’s business profit performance. 

Konami’s report showed a 31.2% YoY business profit drop to JPY41,062 million ($319,138) in the nine months ending December 31, 2022. The operating profit dropped 37.8% to JPY37,523 million ($291,633) while the profit before income taxes went down 35.9% to JPY38,374 million ($298,247). The profit attributable to the owners of the parent company for the same period reached JPY27,571 million ($214,285), marking a drop of 34.9% on a year-on-year basis. 

Digital Entertainment Revenue Up, Amusement Dips

The Digital Entertainment segment recorded a 1.6% revenue increase to JPN¥156,424 million ($1.21 million). Some of the most important activities in this segment include the distribution of Yu-Gi-Oh! RUSH DUEL: Dawn of the Battle Royale!! 2 which was created for Nintendo Switch players and the announcement of a SILENT HILL 2 remake. Konami has also announced the addition of brand new titles to the popular series, including SILENT HILL: Townfall and SILENT HILL f. Together with the Japan Professional Football league, the company held the finals of the eSports tournament “eJ.LEAGUE eFootballTM 2022 season” with 40 participating teams in the J1 and J2 leagues.

Konami’s Amusement segment recorded a 23% drop to JPY10,558 million ($82,058) thanks to the company initiating its operations for CHASE CHASE JOKERS, the three-on-three team tag game, and GITADORA FUZZ-UP, the freshest game part of the GITADORA music game series that features “Premium Free Mode”. The “KONAMI AMUSEMENT GAME STATION” continues to remain popular among arcade game players on smartphones and computers. The company also presented the medal game FORTUNE TRINITY Seirei no Shihousai game to the public, together with QuizKnock STADIUM.

Sports Revenue Increases, Gaming Revenue Soars

The Gaming and Systems segment’s revenue went up 49.2% reaching the JPY27,864 million ($289.401 million) mark. The group’s successful DIMENSION series kept attracting customers in Australia and North America where it has also been rewarded with a number of prestigious prizes. The All Aboard slot has also recorded great operational success in the last two years. Fortune Mint and Triple Sparkle are other Konami titles that have been well-received by players.

In terms of casino management, Konami introduced a series of functionalities meant to improve and strengthen its product appeal. The list includes Money Klip for cashless casinos which helped the group maintain its strong performance.

The company’s sports segment revenue went up 9.9% to JPY33,716 million ($262,044) in the nine months ending December 31, 2022. In December 2022, the company launched “Pilates Mirror Sakura-shinmachi” in Tokyo. This is their third Pilates studio that features a ceiling mirror. 

The group also initiated its contracted operations of sports facilities in fresh regions such as Hadano City, Yokohama City, Kyoto, Fukuoka, Kanagawa, Kanagawa, Kyoto City, Aichi, and Toyohashi City. Konami also opened four new swimming schools at the following facilities: Isogo, Kawanishi, Jiyu-ga-Oka, and Izumi-Chuo.

At the beginning of February, Konami’s Las Vegas subsidiary Konami Gaming inked an agreement with Caesars Sportsbook and Casino to see its online slots extend their reach in the industry.