Konami fiscal 2018 revenue rises, but gaming division weak

Konami Corp. posted a 4.2 percent gain in fiscal 2018, a shade below its earlier forecasts, with gains in its digital entertainment division failing to outweigh a decline in its gaming and systems and other divisions.

Overall revenue was Y239.5 billion yen ($2.2 billion), below the Y240 billion estimate made in January. Profit for the year came in at Y30.5 billion, a gain of 17.5 percent and above its forecast for Y29 billion.

Revenue at the gaming & systems division fell 5.2 percent to Y29.6 billion. Profit at the division fell 10 percent to Y4.4 billion. The company said the decline was due to a drop in the installation of new slot machines due to a limited number of casino openings and some installations being deferred to the 2019 fiscal year.

However, Konami said it expects the picture to improve in fiscal 2019, with revenue projected to rise 6.3 percent and profit seen up 26 percent.

“The gaming market is continuing to see growth with the worldwide development and opening of new casino facilities and integrated resorts (IR) which include casinos,” it said. “Furthermore, measures for more development have been implemented in the gaming business, including the legalization of slot machines with skill-based elements in some states in the U.S. This will enable the machines to reflect players’ skill levels, as a countermeasure against young people’s lack of interest in gaming slot machines.”