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Konami reports 4.9% increase in revenue but a fall in profits

Growth is slowing for the Japanese giant, but its gaming and systems division still brought in the bucks
Konami reports 4.9% increase in revenue but a fall in profits
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Konami generated 314,321 million yen ($2.3 billion) in the 2022-2023 financial year, representing a 4.9% increase from 299,522 million yen ($2.2 billion) the previous year, according to its latest financial report.

Despite this growth, the company’s operating profit fell 38%, reaching 46,185 million yen ($342.6 million) compared to 74,435 million yen ($552.1 million) in 2021.

While revenue continues to increase, it’s notable that this growth has slowed down. The 2021-2022 fiscal year saw revenue growth of 9.9% while operating profit increased 103.6%. While the company has still performed well, this does indicate that they struggled in the face of the industry-wide contraction of 2022.

“For the fiscal year ended March 31, 2023, the situation still remains uncertain due to issues such as the prolonged Ukraine conflict, rapid fluctuations in exchange rates caused by tight monetary policies around the world and a surge in resource prices,” reads the report.

“Meanwhile, the situation, in which Covid-19 has once and again spread and calmed, improved due to factors such as progress made with vaccinations, and socioeconomic activities are being normalised thanks to the relaxation of behavioural restrictions. Economic activity is expected to recover further once Covid-19 has been downgraded as Class 5 under the Infectious Disease Control Law in Japan.”

Breaking down the financials

Konami’s digital entertainment division, which incorporates mobile gaming, generated 213,432 million yen ($1.6 billion) throughout the year, a 0.7% decline from 215,010 million yen ($1.6 billion) in the previous year. All other business segments saw year-on-year increases however, with gaming and systems seeing the largest rise at 50.5%. However, digital entertainment remains the company’s strongest sector, with mobile titles such as Professional Baseball Spirits A (Ace) and cross-platform games such as Yu-Gi-Oh: Master Duel identified as particularly strong performers among the company’s portfolio.

However, it appears that Konami may be pinning its hopes on other platforms for future growth, highlighting its hopes for the much-anticipated reboot of the Silent Hill franchise, which has three console games in development. It should be noted, however, that rumours of mobile integration into the franchise have been circulating for some time, so perhaps Konami will be taking the series in a new direction.

Despite the success of Yu-Gi-Oh: Master Duel, it was announced in March that its fellow mobile game Yu-Gi-Oh: Cross Duel will be shuttering later this year.