Koei Tecmo Holdings (3635) Q2 2027 earnings summary

Executive summary

• H1 FY2027 sales rose 19.4% YoY to ¥37,327m; operating profit increased 47.4% to ¥11,743m, led by Entertainment growth.

• Full-year forecasts were raised versus initial guidance to sales of ¥91,000m and net profit of ¥37,000m; the annual dividend forecast increased to ¥56/share.

Financial highlights

• H1 sales increased ¥6,059m YoY to ¥37,327m; gross profit was ¥20,388m versus ¥17,238m, and operating profit increased ¥3,779m to ¥11,743m.

• Ordinary profit rose 43.4% YoY to ¥25,523m and parent-attributable profit rose 38.1% to ¥18,596m; basic EPS was ¥55.66 versus ¥42.61.

• H1 results exceeded initial forecasts by ¥3,327m for sales, ¥4,743m for operating profit, ¥13,523m for ordinary profit and ¥9,596m for net profit.

• Personnel costs and cost of sales increased; outsourcing and advertising costs were broadly unchanged YoY.

Outlook and guidance

• FY2027 forecast: sales ¥91,000m, operating profit ¥34,000m, ordinary profit ¥51,000m and parent-attributable profit ¥37,000m.

• Forecast YoY changes: sales +2.9%, operating profit -8.5%, ordinary profit -10.5% and parent-attributable profit -13.6%; EPS forecast is ¥110.73.

• Versus initial guidance, forecasts increased by ¥1,000m for sales, ¥2,000m for operating profit, ¥9,000m for ordinary profit and ¥6,000m for net profit.

• Annual dividend forecast increased to ¥56/share from initial guidance, comprising ¥0 second-quarter and ¥56 year-end; this is ¥10 below FY2026, with a forecast payout ratio of 50.6%.

• Forecasts include planned FY2027 releases and assume no major temporary expenses; USD/JPY assumption is ¥148, with operating profit fluctuations of ¥100m or more per ¥1 exchange-rate move.