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IR Top Page > Financial Information > Financial Review

Financial Review (Japan GAAP)

(as of July 29, 2021)

Here we breakdown our consolidated business results for the three months ended June 30, 2021 with graphs and diagrams.

1. Operating results overview

Net sales Operating income Ordinary income Net income attributable to owners of the parent Earnings per share
48,423
million yen
( 104.1%
increase YoY)
23,604
million yen
( 120.4%
increase YoY )
23,899
million yen
( 125.0%
increase YoY )
17,340
million yen
( 121.9%
increase YoY )
81.22 yen

Net sales (cumulative)

Operating income (cumulative)

Ordinary income (cumulative)

Net income attributable
to owners of the parent (cumulative)

During the three months ended June 30, 2021, the Company continued to pursue the growth of digital sales in its core Digital Contents business through the launch of a major new title in its flagship series and the sale of catalog titles. At the same time, the Company worked to steadily increase earnings by coordinating its efforts to expand in visual media, product licensing and eSports, as well as with its Arcade Operations and Amusement Equipments businesses.

As a result, for the three months ended June 30, 2021, consolidated net sales were 48,423 million yen (up 104.1% from the same term in the previous fiscal year). In terms of profitability, operating income was 23,604 million yen (up 120.4% from the same term in the previous fiscal year), ordinary income was 23,899 million yen (up 125.0% from the same term in the previous fiscal year), and net income attributable to the owners of the parent was 17,340 million yen (up 121.9% from the same term in the previous fiscal year).

Status of business by operating segment

1. Digital Contents business

Net sales (cumulative)

Operating income (cumulative)

Operating margins (cumulative)

In this business segment, the latest title in the Company's flagship series Resident Evil Village (for PlayStation 5, PlayStation 4, Xbox Series X|S, Xbox One, PC) was released in May; supported by steady popularity, the title performed well with shipments exceeding 4.5 million units worldwide after garnering acclaim for its immersive gameplay driven by the synergies between its beautiful graphics and horror elements. In addition, Monster Hunter Rise (for Nintendo Switch), released at the end of the previous fiscal year, continued to see growth in sales volume thanks to its enduring popularity. In an effort to gain wider recognition for its intellectual property and acquire new fans, the Company also showcased its major titles for this fiscal year and eSports initiatives etc. at E3 2021, which was held as an online event in June. Furthermore, catalog titles performed well, especially series titles, driven by the released games mentioned above. High-margin digital sales grew significantly and drove profitability, with total sales of 13.3 million units far surpassing 9.2 million units during the same period the previous fiscal year.

In Mobile Contents, licensing revenue from utilizing the Company's major intellectual property contributed to profits.

The resulting net sales were 43,918 million yen (up 104.5% from the same term in the previous fiscal year) and operating income was 24,455 million yen (up 107.2% from the same term in the previous fiscal year).

2. Arcade Operations business

Net sales (cumulative)

Operating income (cumulative)

Operating margins (cumulative)

In this business, the Company was forced to suspend operations and shorten the operating hours of some of its stores in conjunction with the declaration of the third state of emergency in Japan; despite this, sales increased due to the recovery in customer traffic in stores compared to the same period in the previous fiscal year. The Company also rolled out new customer acquisition initiatives, including capsule toys featuring the latest character merchandise, etc.

During this quarter, the Company opened Plaza Capcom MitteN Fuchu in Tokyo in June and closed one store in May. As such, the total number of stores remained unchanged from the end of the previous quarter at 41 stores.

As a result, net sales were 2,389 million yen (up 101.7% from the same term in the previous fiscal year) with an operating loss of 63 million yen (operating loss in the same term of the previous fiscal year was 554 million yen).

3. Amusement Equipments business

Net sales (cumulative)

Operating income (cumulative)

Operating margins (cumulative)

In this business, within an environment where expectations for future demand from the replacement of machines with ones compliant with the latest regulations, the Company released a new model, Hyakka Ryoran Samurai Girls, while sales of catalog title Resident Evil 7 biohazard, released in the previous fiscal year, worked to support revenue.

The resulting net sales were 1,282 million yen (up 606.1% from the same term in the previous fiscal year) and operating income was 243 million yen (up 242.2% from the same term in the previous fiscal year).

4. Other Businesses

Net sales (cumulative)

Operating income (cumulative)

Operating margins (cumulative)

In Other Businesses, the Company focused on promoting the sales of character merchandise, etc., utilizing its flagship intellectual property on a global scale, to enhance the brand value of its titles.

In eSports, the Company promoted measures to expand the user base globally, including holding the all-online Capcom Pro Tour Online 2021 in 19 regions worldwide, starting with an April event in Japan. Further, qualifiers for the Street Fighter V tournament at Intel World Open commenced in June and finals were held in July.

As a result, net sales were 832 million yen (down 5.4% from the same term in the previous fiscal year) and operating income was 482 million yen (down 5.6% from the same term in the previous fiscal year).

2. Financial position overview for the fiscal year under review

Assets

Total assets as of the end of the first quarter increased by 10,133 million yen from the end of the previous fiscal year to 173,846 million yen. The primary increase was 27,379 million yen in cash on hand and in banks. The primary decreases were 10,686 million yen in notes and accounts receivable - trade and 5,022 million yen in work in progress for game software.

Liabilities

Total liabilities as of the end of the first quarter decreased by 2,375 million yen from the end of the previous fiscal year to 40,542 million yen. The primary decreases were as follows: 1,051 million yen in accrued bonuses and 981 million yen in notes and accounts payable - trade.

Net assets

Net assets as of the end of the first quarter increased by 12,509 million yen from the end of the previous fiscal year to 133,303 million yen. The primary increase was 17,340 million yen in quarterly net income attributable to owners of the parent. The primary decrease was 4,910 million yen in dividends from retained earnings.

3. Forecast and Outlook

The forecast for the consolidated business results for the current fiscal year ending March 31, 2022 remains the same as what was projected at the financial results announcement on May 10, 2021.

Earnings forecast for the fiscal year ending March 31, 2022
(From April 1, 2021 to March 31, 2022)

  Net sales Operating income Ordinary income Net income attributable to owners of the parent Earnings per share
Year ending March 31, 2022 100,000 million yen
( 4.9% increase YoY )
42,000 million yen
( 21.4% increase YoY )
42,000 million yen
( 20.5% increase YoY )
30,000 million yen
( 20.4% increase YoY )
140.52 yen

Note: 1. Capcom discloses only full year business forecasts, as it manages its business performance on an annual basis.

2. With an effective date of April 1, 2021, Capcom performed a 2-for-1 stock split of its common stock.
For earnings per share for the fiscal year ending March 31, 2022 forecast, Capcom took the stock split into consideration.

This fiscal year, the Company will again work toward stably growing its core Digital Contents business with major title releases and by strengthening digital sales of its games. It will also maximize use of its major brands to carry out integrated promotional activities.

The Company will build sales volume throughout the fiscal year, driven by both the May release of Resident Evil Village, the latest title in the Resident Evil series, as well as the July release of Monster Hunter Stories 2: Wings of Ruin, which is the latest title in the Monster Hunter series. Further, the Company will release free updates for Monster Hunter Rise, which was released at the end of the previous fiscal year, to keep the title fresh and retain user interest. At the same time, it will work to maximize sales by carrying out pricing promotions for its catalog titles.

Outlook

Regarding the outlook going forward, the business environment is undergoing great change: the transition to high-speed, high-capacity new mobile communication-standards, an increased number of distribution channels for game content, diversification of devices and the expansion of the global gaming user base. In such an environment, the Company is working to achieve its medium-term management goal of 10% operating income growth per annum by increasing the value of its brand globally, expanding its number of customers through the proactive use of its intellectual property and growing its core Digital Contents business.

Specifically, the Company is working to bolster its development personnel, strengthen its development capabilities and expand its pipeline of games by both utilizing its major intellectual properties and creating new intellectual properties. In addition, it will focus on growing the total number of units shipped by steadily launching new titles and strengthening the digital sales of its catalog titles.