Konami financials show a rise in profits but decline in revenue
Game publisher Konami has reported a 70 percent increase in year-on-year profits despite a drop in revenue.
On January 31, 2017, the Konami Holdings Corporation released its consolidated results for the nine months ending December 31, 2016.
Its “consolidated total revenue and operating profit” for the nine-month span was ¥163.94 billion (approx. $1.45 billion USD) and ¥29.59 billion (approx. $262 million USD), respectively.
The profit increase comes despite a drop in revenue. Compared to the year before, the company's revenue is down 8.5 percent, while profits are up 69.8 percent.
Konami says it managed to increase profits by combining its Arcade Games Business and its Pachinko Machines Business into one - now called its Amusement Business.
“Although sales from this business decreased amid the continuous harsh market environment surrounding the Amusement business, operating profit from this business increased compared to the same period in the previous year due to promoted business operation efficiency and improved profit structure,” Konami stated in its financial report.
Konami also highlighted the strong performance of mobile titles like PES Club Manager and Yu-Gi-Oh! Duel Links, “both of which enjoy a strong start with an unprecedented number of downloads at a faster-than-ever pace” the publisher said.
Konami also has a substantial health and fitness division, its second-biggest section in terms of revenue.
In its last financial report, Konami said PES 2017 had experienced a “strong performance”.
Konami has undergone several major changes over the past couple of years.
The publisher announced in 2015 it was shifting its focus to mobile games, and Hideo Kojima left the company after developing the critically acclaimed Metal Gear Solid V: The Phantom Pain.
Despite Kojima's departure, the Metal Gear franchise will live on, as a four-player stealth game called Metal Gear Survive is slated to release for Xbox One, PS4 and PC later this year.
The spinoff is set in the same universe as Metal Gear Solid V and takes place after the events of Ground Zeroes.