Konami announced a 6% increase in revenue for the first six months of fiscal 2023, compared with 2022. However, operating profit declined 35%. Digital entertainment (ie video games) has become the dominant revenue source for Konami accounting for 69% of revenue in the six months ending 9/30/22.
Analysis
Konami is in several businesses outside of video games including casino slot machines (Gaming & Systems division), arcade games and amusement facilities (Amusement) and sports clubs (Sports). All these other areas where in-person activities were severely hurt by COVID stay-at-home. However, video games showed decent 4% growth despite a tough comparable.
In recent years, Konami has been a quiet player in Western markets. The eFootball soccer series is remake of the Pro Evolution franchise that suffered as Electronic Arts’ FIFA franchise soared.
The overall results for the first-half were not very exciting. However, going forward Konami is an interesting company to watch as they look to once again expand internationally. Starting in 2023, Electronic Arts will no longer have access to the FIFA license so there may be opportunity in soccer/football. Konami is also looking to bring back classic franchises like Silent Hill.Â
