- January 21, 2021
- Press Release
-
Company Name: Capcom Co., Ltd.
Representative: Haruhiro Tsujimoto, President and COO
(Code No. 9697 First Section of Tokyo Stock Exchange)
Contact: Shin Kurosawa, Senior Manager of
Public Relations and Investor Relations Section
Phone Number: +81-6-6920-3623
Capcom Announces Revision of Consolidated Full-Year Earnings Forecast, Variances Between its Non-Consolidated Estimated Earnings and the Previous Fiscal Year’s Actual Results, and a Dividend Forecast Revision (Upward)
Based on recent operational results, Capcom Co., Ltd. (Capcom) has revised the full-year consolidated earnings forecast for the year ending March 31, 2021 (April 1, 2020 – March 31, 2021) that was announced on May 8, 2020. Further, while the company’s non-consolidated earnings forecast is not disclosed, it expects a variance between its non-consolidated estimated earnings and the actual results of the previous fiscal year.
Additionally, the company has revised the dividend forecast for the fiscal year ending March 31, 2021 (April 1, 2020 – March 31, 2021) that was announced on October 29, 2020. Details are as follows:
1. Regarding revisions to the earnings forecast
i. Revisions to the consolidated forecast for the fiscal year ending March 31, 2021
(April 1, 2020 to March 31, 2021)
(million yen)
| Net sales | Operating income | Ordinary income | Net income attributable to owners of the parent | Earnings per share (yen) | |
|---|---|---|---|---|---|
| Previous forecast (A) | 85,000 | 25,500 | 25,500 | 18,000 | 168.62 |
| Revised forecast (B) | 92,000 | 30,500 | 30,000 | 21,000 | 196.72 |
| Variance (B) – (A) | 7,000 | 5,000 | 4,500 | 3,000 | – |
| Variance (%) | 8.2 | 19.6 | 17.6 | 16.7 | – |
| (Reference) Previous year’s results (FY ended Mar. 31, 2020) |
81,591 | 22,827 | 22,957 | 15,949 | 149.41 |
ii. Reason for the revision
Following our recent success in proactively growing digital sales in our core Digital Contents business we have seen a solid performance by new title Resident Evil 3, along with continued growth in high-margin catalog titles with long sales cycles, such as Monster Hunter World: Iceborne, which was released in the previous fiscal year. Additionally, orders for Monster Hunter Rise, a major new title scheduled for release in March of this year, are off to a promising start. Altogether, this has led us to expect this business to outperform our plan.
Further, in our Amusement Equipments business, in addition to a strong performance from Monster Hunter: World, a new model released in November, we now plan to release three models total rather than the initially planned one model, which has led us to expect to beat our initial plan.
As a result, we expect net sales, operating income, ordinary income and net income attributable to owners of the parent to all exceed our previous forecast.
iii. Variances between non-consolidated estimated earnings for the fiscal year ending March 31, 2021 and the previous fiscal year’s actual results
(April 1, 2020 to March 31, 2021)
(million yen)
| Net sales | Operating income | Ordinary income | Net income | Earnings per share (yen) |
|
|---|---|---|---|---|---|
| Previous year’s results (A) | 68,206 | 19,105 | 18,820 | 16,947 | 158.76 |
| Current year’s estimate (B) | 80,000 | 27,000 | 27,500 | 19,000 | 177.99 |
| Variance (B) – (A) | 11,793 | 7,894 | 8,679 | 2,052 | – |
| Variance (%) | 17.3 | 41.3 | 46.1 | 12.1 | – |
iv. Reason for the variances
The reasons for the variances are the same as those for the revision to the consolidated forecast.
2. Regarding revision to the dividend forecast
i.Dividend forecast revision
| Dividend per share | |||
|---|---|---|---|
| Record date | Interim dividend End of 2nd quarter |
Year-end dividend End of fiscal year |
Full-year dividend (Total) |
| Previous forecast (October 29, 2020) |
– | ¥25 | ¥50 |
| Revised forecast | – | ¥35 | ¥60 |
| Current year actual | ¥25 | – | – |
| Previous year actual (FY ended Mar. 31, 2020) |
¥20 | ¥25 | ¥45 |
ii. Reason for the revision
Capcom management sees returning profits to shareholders as an issue of the utmost importance; thus, with consideration given to future business developments and changes in the management environment, we strive to pay stable dividends with a consolidated dividend payout ratio of 30% as our basic policy.
In considering the revision to our full-year consolidated earnings forecast for the fiscal year ending March 31, 2021, and based on the above-stated policy, we have decided to increase the year-end dividend for the year ending March 31, 2021 from the previous forecast of ¥25 per share by ¥10 per share, for a dividend of ¥35 per share.
With this change, and together with the interim dividend (¥25 per share), the full-year dividend will be ¥60 per share, with a consolidated dividend payout ratio of 30.5%.
We plan to raise this matter at the upcoming 42nd Annual General Meeting of Shareholders that is scheduled to be held in June 2021.
* The forecasts presented in this document are based on information that was available on the announcement date of this release. Actual results may differ from this forecast for a number of reasons.
