Konami FY2017 Revenue Rises, But Gaming Division Weak

Konami Corporation posted a 4.2 percent gain in FY2017, 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 239.5 billion yen (US$2.2 billion), below the 240 billion yen (US$2.2 billion) estimate made in January. Profit for the year came in at 30.5 billion yen (US$280 million), a gain of 17.5 percent and above its forecast for 29 billion yen (US$266 million).

Revenue at the gaming & systems division fell 5.2 percent to 29.6 billion yen (US$272 million. Profit at the division fell 10 percent to 4.4 billion yen (US$40 million). 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 FY2018.

However, Konami said it expects the picture to improve in FY2018, 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.” (AGB)