Konami reports record Q1 profit driven by gaming segment

Investing.com -- Konami reported strong first-quarter results with operating profit reaching ¥27.7 billion, up 10.3% year-over-year and exceeding analyst expectations of ¥27 billion.

The Japanese gaming giant posted revenue of ¥97.0 billion for the quarter ended June 30, representing a 7.7% increase from the same period last year and in line with consensus estimates of ¥97 billion.

Net profit rose to ¥19.8 billion, up 3.5% year-over-year, with earnings per share of ¥146.32. The company’s operating profit margin expanded to 28.6%, primarily driven by its Digital Entertainment division.

The Digital Entertainment segment was the standout performer, generating ¥73.3 billion in revenue (up 14.2% year-over-year) and ¥27.9 billion in operating profit (up 17.0%), with an impressive operating profit margin of 38%. This segment’s success was fueled by strong performance of eFootball, which surpassed 850 million downloads and added new cross-play options. The announcement of Silent Hill f and the original Silent Hill remake also contributed to the segment’s growth.

Notably, the Digital Entertainment division contributed more than 100% of Konami’s total operating profit, as other segments posted losses during the quarter.

The Gaming & Systems division, which focuses on casino machines, recorded a loss of ¥0.2 billion, down from a ¥1.3 billion profit in the same quarter last year. This decline was attributed to U.S. tariffs and increased raw material costs, despite new content releases and Synkros installations.

The Amusement segment saw profits fall to ¥0.5 billion from ¥0.8 billion year-over-year, affected by the timing of product launches. Meanwhile, the Sports segment showed modest profit growth to ¥0.4 billion, driven by the expansion of pilates studios and asset-light gyms.

Konami’s pipeline remains robust with several major titles scheduled for release in coming quarters, including Silent Hill f, Metal Gear Solid Δ, and Gradius Origins, highlighting the company’s strategy to revitalize legacy franchises.

The company has already achieved approximately 26% of its full-year operating profit guidance of ¥106 billion. All major profit metrics reached record highs for the first quarter for the second consecutive year.

In its Sports business, Konami opened 11 new pilates studios in Q1 and plans to add seven more in Q2, with some locations reporting waiting lists. The company is also expanding partnerships with local governments for outsourced facility operations.

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