Financial Results

Business Performance (Japan GAAP)

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

1. Operating results overview

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Net sales Operating income Ordinary income Net income attributable to owners of the parent Earnings per share
69,995
million yen
( 66.4%
increase YoY)
28,924
million yen
( 61.9%
increase YoY )
29,723
million yen
( 69.2%
increase YoY )
22,219
million yen
( 71.0%
increase YoY )
104.07 yen
  • Net sales (cumulative)

    Plan

  • Operating income (cumulative)

    Plan

  • Ordinary income (cumulative)

    Plan

  • Net income attributable
    to owners of the parent (cumulative)

    Plan

During the six months ended September 30, 2021, the Company continued to pursue growth of digital sales in its core Digital Contents business through the launch of major new titles in its flagship series and the sale of catalog titles. The Company also made efforts to steadily increase earnings through leveraging these major brands in films, licensed products and in esports, as well as in its Arcade Operations and Amusement Equipments businesses.

As a result, for the six months ended September 30, 2021, consolidated net sales were 69,995 million yen (up 66.4% from the same term in the previous fiscal year). In terms of profitability, operating income was 28,924 million yen (up 61.9% from the same term in the previous fiscal year), ordinary income was 29,723 million yen (up 69.2% from the same term in the previous fiscal year), and net income attributable to the owners of the parent was 22,219 million yen (up 71.0% from the same term in the previous fiscal year).

Status of business by operating segment

1. Digital Contents business

  • Net sales (cumulative)

    Plan

  • Operating income (cumulative)

    Plan

  • Operating margins (cumulative)

    Plan

In this business segment, Resident Evil Village (for PlayStation 5, PlayStation 4, Xbox Series X|S, Xbox One, PC), released in May, contributed significantly to earnings. In July, role-playing game Monster Hunter Stories 2: Wings of Ruin (for Nintendo Switch, PC) was released, winning over a broad range of fans with its adventures featuring popular monsters and an engaging combat system all based on the world of the Monster Hunter series. This resulted in shipments of over 1 million units worldwide for the title. Additionally, sales volume for Monster Hunter Rise (for Nintendo Switch), which was released at the end of the previous fiscal year, continued to grow, supported by the title’s steady popularity, while catalog titles consisting mainly of past series releases generally maintained strong sales. As a result, high-margin digital sales continued to increase and total sales volume reached 19.8 million units, exceeding the 13.8 million units in sales of the same period of the previous fiscal year, thus driving up profits.

Furthermore, in September, the Company announced the summer 2022 release of Monster Hunter Rise: Sunbreak (for Nintendo Switch, PC), a massive premium expansion for Monster Hunter Rise. In addition, the latest information on the Company’s popular titles was presented as part of the official program of Tokyo Game Show 2021 Online, gaining wider recognition for its intellectual property as well as new fans.

In the Mobile Contents sub-segment, licensing revenue utilizing the Company’s flagship intellectual property contributed to profits.

The resulting net sales were 59,803 million yen (up 69.0% from the same term in the previous fiscal year) and operating income was 30,216 million yen (up 52.2% from the same term in the previous fiscal year).

2. Arcade Operations business

  • Net sales (cumulative)

    Plan

  • Operating income (cumulative)

    Plan

  • Operating margins (cumulative)

    Plan

In this business, despite measures such as suspending operations and shortening operating hours of some of its stores in conjunction with the continuation of the state of emergency in Japan, sales and profit increased compared to the same period in the previous fiscal year due to the recovery in customer traffic in stores. Additionally, the Company introduced new attractions such as capsule toys featuring the latest character merchandise.

During the period under review, the Company opened Plaza Capcom MitteN Fuchu (Tokyo) in June and Miraino Aeon Mall Hakusan (Ishikawa Prefecture) in July and closed one store in May, bringing the total number to 42 stores.

As a result, net sales were 5,647 million yen (up 40.1% from the same term in the previous fiscal year) and operating income was 71 million yen (operating loss in the same term of the previous fiscal year was 262 million yen).

3. Amusement Equipments business

  • Net sales (cumulative)

    Plan

  • Operating income (cumulative)

    Plan

  • Operating margins (cumulative)

    Plan

In this business, amidst anticipation 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, which along with sales of the catalog title Resident Evil 7 biohazard, released in the previous fiscal year, drove unit sales over those of the same period of the previous fiscal year.

The resulting net sales were 1,611 million yen (up 21.5% from the same term in the previous fiscal year) and operating income was 388 million yen (up 1,962.0% from the same term in the previous fiscal year).

4. Other Businesses

  • Net sales (cumulative)

    Plan

  • Operating income (cumulative)

    Plan

  • Operating margins (cumulative)

    Plan

In Other Businesses, both the CG animated series Resident Evil: Infinite Darkness and CG film Monster Hunter: Legends of the Guild were streamed exclusively on Netflix worldwide, leveraging the Company’s flagship intellectual properties to enhance their brand value. The Company also worked to expand revenue through collaborations with overseas games and increase sales by promoting character merchandise.

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 from April. Further, the finals for the Street Fighter V tournament at Intel World Open were held in July, with heated battles taking place around the world.

The resulting net sales were 2,933 million yen (up 121.7% from the same term in the previous fiscal year) and operating income was 1,370 million yen (up 147.8% 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 second quarter increased by 17,251 million yen from the end of the previous fiscal year to 180,964 million yen. The primary increase was 40,284 million yen in cash on hand and in banks. The primary decreases were 18,999 million yen in notes and accounts receivable – trade and 2,591 million yen in work in progress for game software.

Liabilities

Total liabilities as of the end of the second quarter increased by 293 million yen from the end of the previous fiscal year to 43,212 million yen. The primary increase was 1,427 million yen in deferred revenue. The primary decrease was 1,175 million yen in notes and accounts payable – trade.

Net assets

Net assets as of the end of the second quarter increased by 16,958 million yen from the end of the previous fiscal year to 137,752 million yen. The primary increase was 22,219 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)

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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.