Yesterday, Tecmo Koei released their earnings report for the 2011 fiscal year, dating from April 1st, 2011, to March 31st of this year. Their numbers were up as they experienced a 10.74% increase in net sales, from ¥32.081 billion ($402 million USD) to ¥35.525 billion ($445 million). Operating income rose from ¥3.305 billion ($41 million) to ¥5.758 billion ($72 million), a hefty 74.22% increase. This relatively large increase is due in part to a decrease in general and administrative expenses, as well as a non-linear relationship between the increase in sales vs. the increase in cost of goods sold. General and administrative expenses had a 6.337% decrease, from ¥8.253 billion ($103 million) to ¥7.730 billion ($96 million). Meanwhile, cost of goods sold only experienced a 7.38% increase, rising from ¥20.522 billion ($257 million) to ¥22.036 billion ($276 million) versus the previously cited 10.74% increase in net sales. Finally, ordinary income increased by 56.06% from ¥4.788 billion ($60 million) to ¥7.472 billion ($94 million), and net income increased by 69.28% from ¥2.741 billion ($34 million) to ¥4.640 billion ($58 million).
The company cited 630,000 combined local and international shipments between Ninja Gaiden 3, Warriors Orochi 2, Samurai Warriors 3: Empires, and Winning Post 7 2012 as the primary reasons for the increase in revenue, but they also went on to credit their development of Pokémon Conquest (known as Pokémon + Nobunaga’s Ambition in Japan) and One Piece: Pirate Warriors as having a large hand in their increased revenue.
For the following year, Tecmo Koei is projecting a 9.8% increase to ¥39 billion ($489 million) in sales, a 21.6% increase to ¥7 billion ($88 million) in operating income, an 11.1% increase to ¥8.3 billion ($104 million) in ordinary income, and a 7.7% increase to ¥5 billion ($63 million) in net income.
Analysis: This has been a good year for Tecmo Koei. During the 2010 fiscal year, although profits increased, their sales actually dropped. However, it’s important to note that was only a year after the Tecmo Koei merger. This year, their numbers are up across the board. In addition to that, they managed to exceed every single one of their projected values given last year. Although Ninja Gaiden 3 received mixed reviews in the U.S., it must have performed well enough in Japan for them to have turned a profit off of it. Additionally, Pokémon + Nobunaga’s Ambition is doing very well in Japan at the moment: the game is the top-selling DS game in Japan this week, selling enough units to place 22nd in the top 50 video game sales. One Piece: Pirate Warriors isn’t doing quite as well as the Pokémon title, but that is to be expected given how popular Pokémon is and that One Piece is an anime franchise. Both titles are set for release in the U.S. this year and will likely serve as a strong start to the 2012 fiscal year for Tecmo Koei.