News

Konami Sales And Profits Up As Company Turns Away From Console, PC Development

by Mike Futter on May 10, 2016 at 07:55 AM

Konami has closed out its fiscal year, and the company has some good news for investors. If you’re hoping to hear about new Contra, Metal Gear, or Castlevania though, we don’t have anything significant to report.

You can expect a new Pro Evolution Soccer this year. And if you play Yu-Gi-Oh (with physical cards), those aren’t going anywhere.

However, most of Konami’s focus in its financial earnings report is on gambling, health, and mobile. Fitness revenue dipped by 2.8 percent. Pachislot and pachinko revenue fell by 17.8 percent. The gambling division climbed by 1.4 percent.

In contrast, digital entertainment revenue (console, PC, mobile, and the Yu-Gi-Oh card game) revenue climbed by 36.8 percent in the fiscal year, in part due to strong sales of Metal Gear Solid V: The Phantom Pain.

Company-wide revenue was up 14.6 percent to ¥249.9 billion ($2.3 billion), with a major jump in operating income of 61.2 percent to ¥24.7 billion ($228.8 million). Net income grew, though modestly, by 5.6 percent to ¥10.5 billion ($97.6 million).

Despite the successes in fiscal year 2016, Konami expects revenues to decline in the new year. However, the company anticipates controlling expenses to raise net income for the period. this is in part due to a significant reduction in both revenue and expenses in the digital entertainment category. Revenues in other segments will drop slightly, though profits are anticipated to rise on cost control.

[Source: Konami]

 

Our Take
While Konami says it’s committed to Metal Gear, at this point it’s hard to see the publisher as a major player in the console and PC space. I wouldn’t expect Pro Evolution Soccer to disappear, and there might be the occasional handheld Yu-Gi-Oh game. But the days of Castlevania and Contra seem to be sadly behind us.