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Konami’s profits back on track with 22% rise in quarter one

Video games account for the most profit, but not the biggest proportional rise
Konami’s profits back on track with 22% rise in quarter one

Following news of falling profits in the 2022-2023 fiscal year, Konami’s latest financial report has become increasingly important in predicting the future of the company. And with the release, covering the three months up to 30 June 2023, comes the positive news that profits are on the up once more.

The three-month period reported was Konami’s first quarter of its financial year 2024, and compared to last year’s equivalent, business profits have increased by 21.7% while operating profits are up 22.2%.

Before income taxes, profits are up 16%, and profits attributable to Konami’s owners have risen by 17%.

Seeking the source

With all-around rises in the company’s profit, the natural next question is where the money has come from - given Konami’s enterprises spanning sports, amusement, entertainment and more.

(Notably, the report’s "Gaming & Systems" category is in reference to its slot machines, casino management and manufacturing, meanwhile "Digital Entertainment" is in reference to video games.)

Naturally, video games have led the charge in the past three months, generating ¥48.1 billion ($336 million) in revenue and raising profits by 13% YoY to ¥15.1 billion ($105 million). While leagues behind at ¥2 billion ($14 million) profit, Konami’s casino-related endeavours were its second-most profitable in the quarter, and with a significantly larger lead in percentage increase than any other area, rising 139.5%.

It is also interesting to note that Gaming & Systems generated more profit for Konami than its sports ventures, despite the latter generating more revenue.

On the Digital Entertainment front, spanning mobile, card, computer and video games, Konami attributed its success in part to cross-platform title eFootball 2023’s strong and sustaining performance.

Yu-Gi-Oh Duel Links, the mobile version of a popular card game, celebrated its sixth anniversary this year and has previously helped Konami reach record revenues. Yu-Gi-Oh! Master Duel, another mobile game in the franchise, racked up 50 million downloads in only nine months. Both titles were likely to have been important factors in this return to course also.

Overall, Konami’s Q1 profits have increased from ¥14 billion (98 million) last year to ¥17.2 billion ($120 million) this year – an optimistic turnaround after the company’s operating profit fell by 38% in the previous financial year.