Capcom (9697) Q2 2025 earnings summary

Executive summary

• H1 net sales ¥564B, down 25% YoY; operating income ¥207B, down 39% YoY; net income attributable to owners ¥152B, down 40% YoY.

• Achieved strong H1 progress toward full-year targets, with new title launches and YoY growth in catalog unit sales; Arcade Operations and Amusement Equipments contributed to profit.

• Digital Contents business saw a decrease in new title sales, with catalog sales dominating and unit sales reaching 20.02 million units, down from 22.6 million units YoY.

• Investments focused on digital sales, human capital, and acquisition of 3DCG production companies to strengthen development capabilities.

• Remuneration system for directors revised to link more closely with business performance, introducing a performance-linked stock remuneration system.

Financial highlights

• H1 net sales ¥564B, down 25% YoY; operating income ¥207B, down 39% YoY; net income attributable to owners ¥152B, down 40% YoY.

• H1 gross margin 59.1%, up from 55.5% prior year.

• Operating margin for H1 at 36.7%, compared to 45.2% in the prior year.

• Cash and cash equivalents at end of H1 ¥1,106B, up ¥27B from previous year.

• H1 cash flows from operating activities ¥140B, down ¥131B YoY.

Outlook and guidance

• Full-year net sales forecast at ¥1,650B (+8% YoY), operating income ¥640B (+12% YoY), net income attributable to owners ¥460B (+6% YoY), EPS ¥109.98.

• Earnings per share forecast ¥109.98; annual dividend forecast ¥36 (post 2-for-1 stock split effective April 1, 2024).

• Results expected to be H2-weighted due to timing of new title releases.