- October 29, 2020
- Press Release
-
Company Name : Capcom Co., Ltd.
Representative: Haruhiro Tsujimoto, President and COO
(Code No. 9697 First Section of Tokyo Stock Exchange)
Contact: Public Relations and Investor Relations Section
Phone Number: +81-6-6920-3623
Net Sales Up 12.8%, Operating Income Up 27.7% Year-over-year in Capcom’s Consolidated Results for the Six Months Ended September 30, 2020
Capcom Co., Ltd. today announced that in its consolidated business results for the six months ended September 30, 2020 net sales were 42,059 million yen (up 12.8% year-over-year), operating income was 17,863 million yen (up 27.7% year-over-year), and ordinary income was 17,571 million yen (up 25.5% year-over-year). Net income attributable to owners of the parent was 12,993 million yen (up 32.0% year-over-year).
This quarter, after the state of emergency was lifted in Japan, Capcom maintained working arrangements that combined telecommuting and staggered work schedules while also implementing infection prevention measures at the office to minimize the impact of the pandemic. In such an environment, Capcom’s core Digital Contents business drove up business results with growth in sales of major new titles and catalog titles due to expanded digital sales, which Capcom has been actively pursuing in recent years, resulting in the highest profit at all levels at the end of a second quarter in company history.
The forecast for the consolidated business results for the current fiscal year ending March 31, 2021 remains the same as what was projected at the financial results announcement on May 8, 2020.
1. Results for the 6 months ended September 30, 2020
Net sales | Operating income | Ordinary income | Net income attributable to owners of the parent | Net income per share | |
million yen | million yen | million yen | million yen | yen | |
6 months ended September 30, 2020 |
42,059 | 17,863 | 17,571 | 12,993 | 121.72 |
6 months ended September 30, 2019 |
37,272 | 13,992 | 14,002 | 9,846 | 92.23 |
2. Earnings forecast for the fiscal year ending March 31, 2021
Net sales | Operating income | Ordinary income | Net income attributable to owners of the parent | Net income per share | |
million yen | million yen | million yen | million yen | yen | |
Year ending March 31, 2021 |
85,000 | 25,500 | 25,500 | 18,000 | 168.62 |
Note: Recent changes in earnings forecast for the fiscal year ending March 31, 2021: None
3. Status of Each Operational Department
(1) Digital Contents
6 months ended September 30, 2019 |
6 months ended September 30, 2020 |
Difference (%) | |
Net sales | 29,163 | 35,378 | 21.3% |
Operating income | 14,503 | 19,849 | 36.9% |
Operating margin | 49.7% | 56.1% | – |
- a. In this business segment, new title Resident Evil 3 (for PlayStation 4, Xbox One and PC) was released in April 2020 and delivered solid sales. Meanwhile, high-margin catalog titles demonstrated their long product lives, including with the continued growth of Monster Hunter World: Iceborne (for PlayStation 4, Xbox One and PC), which was released in the previous fiscal year, all of which drove up profits.
- b. In the Mobile Contents sub-segment, licensing revenue from the use of the Company’s major IP also contributed to profit.
- c. The resulting net sales were 35,378 million yen (up 21.3% from the same term in the previous fiscal year) and operating income was 19,849 million yen (up 36.9% from the same term in the previous fiscal year).
(2) Arcade Operations
6 months ended September 30, 2019 |
6 months ended September 30, 2020 |
Difference (%) | |
Net sales | 6,233 | 4,031 | (35.3%) |
Operating income | 915 | (262) | – |
Operating margin | 14.7% | – | – |
- a. In this business, the Company was forced to temporarily close stores due to the impact of COVID-19. However, after the state of emergency was lifted in Japan, it has gradually reopened them in due order and has worked toward recovery.
- b. Plaza Capcom Kochi was remodeled during the period under review. However, the total number of stores remains unchanged from the end of the previous fiscal year at 40 stores, as there were no new openings or closures of stores during this period.
- c. The resulting net sales were 4,031 million yen (down 35.3% from the same term in the previous fiscal year) with an operating loss of 262 million yen (operating profit was 915 million yen in the same term in the previous fiscal year).
(3) Amusement Equipments
6 months ended September 30, 2019 |
6 months ended September 30, 2020 |
Difference (%) | |
Net sales | 241 | 1,325 | 448.7% |
Operating income | 67 | 18 | (72.2%) |
Operating margin | 27.8% | 1.4% | – |
- a. In this business, demand was weak amid the spread of COVID-19 due to the suspension of operations of amusement halls and the extension of deadlines for the removal of game machines manufactured before recent rule revisions. In such an environment, the Company launched the new machine Ring-ni-Kakero1 -World champion carnival version– while expanding its licensing business.
- b. The resulting net sales were 1,325 million yen (up 448.7% from the same term in the previous fiscal year) and operating income was 18 million yen (down 72.2% from the same term in the previous fiscal year).
(4) Other Businesses
6 months ended September 30, 2019 |
6 months ended September 30, 2020 |
Difference (%) | |
Net sales | 1,633 | 1,323 | (19.0%) |
Operating income | 733 | 552 | (24.6%) |
Operating margin | 44.9% | 41.7% | – |
- a. In Other Businesses, the Company focused on promoting film adaptations and the sales of character merchandise using our flagship intellectual property to enhance the brand value of our titles worldwide. In addition, in eSports, the Company steadily continued to expand the user base and create business opportunities toward the medium term. As part of this strategy, the opening match of the team-based league Street Fighter League: Pro-JP 2020 was aired on the official Tokyo Game Show 2020 Online channel.
- b. As a result, net sales were 1,323 million yen (down 19.0% from the same term in the previous fiscal year) and operating income was 552 million yen (down 24.6% from the same term in the previous fiscal year).