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Konami’s 2Q22 profit down, international business cushions dent

Konami’s revenues from the local Japanese market went down on a year-on-year basis, but the damage was largely cushioned due to recovery in other geographies, including US, Europe, Asia and Australasia.

Despite significant rise in the top-line revenue, Konami’s net profit for 2Q22 dipped 16.3 percent on year-on-year basis at JPY 11.4 billion ($85 mln), largely due to a 30 percent dent in business profits, down on year-on-year basis at JPY 14 billion ($104 million).

The top-line revenue of the company grew 5 percent on a year-on-year basis at JPY 72 billion ($533 million) from JPY 68.33 billion ($506 million), riding the growth path across digital entertainment, gaming & systems and sports segments, which contributed positively to the topline on year-on-year basis.

“For the three months ended June 30, 2022, consumptions and investments have been expanding and the situation is on track to recovery by factors, such as progress of normalized socioeconomic activities while taking measures to prevent the infection of COVID-19,” the statement in the Business Overview portion of the press release read.

Contributors

Segment-wise contributions to the net revenues of Konami for second quarter of 2022, Digital Entertainment segment contributed 71 percent at JPY 51 billion ($375 million), followed by sports segment contribution of JPY11 billion ($81 million) at 15 percent, Gaming & Systems contributed 11 percent at JPY7.7 billion ($57 million) and Amusement segment contributed 4 percent at JPY3 billion ($21 million).

On a year-on-year basis the Gaming & Systems segment revenues grew 22.2 percent at JPY 7.7 billion (US$57 million), whereas Sports segment revenues grew 17.6 percent at 11 billion ($81 million) and the Digital Entertainment segment grew 1.9 percent at JPY 51 billion ($375 million).

Amusement segment revenues of the company registered a decline on a year-on-year basis, mainly due to changes in people’s behaviors and awareness resulting from the COVID-19 pandemic, the company statement read.

In the gaming market, the operation in casino facilities in North America and Australia returned to its pre-COVID-19 level and the situation was brought back in the revitalized markets, the company press release read.

Markets

As far as the geographical contribution of the Konami Group goes, the home market of the company Japan reported dent of 7 percent in the revenues on a year-on-year basis at JPY49 billion ($361 million) from 53 billion ($389 million).

Whereas the United States, Europe, Asia and Australasia regions reported growth on a year-on-year basis.

United States reported 53 percent growth on a year-on-year basis at JPY14 billion ($107 million) from JPY9 billion ($70 million).

Whereas Europe grew 41 percent at JPY4.76 billion ($35 million) from JPY3.37 billion ($25 million) and Asia Oceania region reported growth of 32 percent at JPY4 billion ($29 million) from JPY3 billion ($22 million).

Although other markets in some countries and regions are still affected by the COVID-19 pandemic, the market as a whole is on the road to recovery, the company statement read.

AGBrief Editorial
AGBrief Editorialhttps://agbrief.com/about-asia-gaming-brief/
The AGBrief Editorial Team is a group of contributors living around the world that are connected to Asia Gaming Brief. They are active members in pursuing the sources of our news, making them reliable and accurate for our readers.

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