ENVALITH
株式会社コーエーテクモホールディングス logo

KOEI TECMO HOLDINGS CO., LTD.

3635・Prime Market・Information & Communication

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株式会社コーエーテクモホールディングス logo
KOEI TECMO HOLDINGS CO., LTD.3635

Business

Koei Tecmo Holdings is a holding company established in 2009 through the business integration of Koei Co., Ltd. and Tecmo Ltd. In its core Entertainment Business, multiple brands including "Shibusawa Kou," "ω-Force," "Team NINJA," and "Gust" develop and sell game content across diverse genres such as historical simulation, action, and RPG, expanding into global markets through console, PC, and mobile platforms. Domestically, the company also engages in Amusement Facility Operation, contract development of LCD software for slots and pachinko, and Real Estate Business including live house-type halls, securing stable revenue sources. Consolidated net sales for FY2026 (ending March 2026) were ¥88,393 million.

Business Model

In the core Entertainment Business, revenue is diversified through package and digital sales of in-house IP, combined with royalty income from IP licensing (e.g., "Sangokushi Shinsen" (Romance of the Three Kingdoms: The Legend Continues)) and collaborative contract development with Nintendo, The Pokémon Company, Xbox Game Studios, and others. The Amusement Business contributes stably through royalties from Slot & Pachinko LCD Software Contract Development and facility operation income, while the Real Estate Business contributes stably through rental and facility income from KT Zepp Yokohama and other properties. Surplus funds are managed through investment securities and other instruments, with non-operating income also contributing to results.

Company Strengths

For FY2026 (ending March 2026), the operating margin on net sales was 42.0% (up 3.4 points year on year), with operating profit of ¥37,168 million. Over the past five fiscal periods, the operating margin has generally remained in the high-30% to 40% range, with the high-value-added business model centered on in-house IP development and sales underpinning strong profitability.

ENVALITH's Perspective

Revenue of ¥88,393 million (+6.3% YoY), operating income of ¥37,168 million (+15.7% YoY), ordinary income of ¥57,000 million (+14.0% YoY), and net income attributable to owners of the parent of ¥42,830 million (+13.8% YoY) — all key indicators updated their record highs. Major titles such as "Shin Sangoku Musou ORIGINS" and "Nioh 3" drove performance, and the decrease in selling, general and administrative expenses (from ¥20,270 million to ¥19,894 million) also contributed to margin improvement. This can be evaluated as a favorable start to the first year of the 4th Medium-Term Management Plan.

The forecast for FY2027 (ending March 2027) projects revenue of ¥90,000 million (+1.8%), while operating income is expected to decline sharply to ¥32,000 million (▲13.9%), ordinary income to ¥42,000 million (▲26.3%), and net income to ¥31,000 million (▲27.6%). The main factors are conservative planning for increased human capital investment, development expenses, and selling expenses, combined with an anticipated reduction in non-operating income reflecting recent conditions in financial and capital markets (an external factor). The degree of conservatism in the plan and the actual potential for upside surprise will be key to investment decisions.

During the fiscal year, the company recorded ¥31,995 million in proceeds from the disposal of treasury shares, causing the treasury share balance to decrease sharply from ¥37,740 million to ¥3,747 million. Net assets surged from ¥189,421 million to ¥272,536 million. Meanwhile, the dividend forecast for the next fiscal year was reduced to ¥48 per share (down ¥18 from ¥66 in the current period). While the 50% dividend payout ratio policy is maintained, the dividend-to-net-assets ratio, relative to net assets per share of ¥813.60, is expected to decline from 9.4% to approximately 5.0%, representing a substantive shift in the level of shareholder returns that warrants close attention.

Growth Strategy

Building a growth foundation under the 4th medium-term management plan (3-year plan), advancing pipeline expansion, strengthening global sales capabilities, and investing in human capital

In FY2026 (ended March 2026), 14 package game titles were released, including 'Shin Sangoku Musou: Origins' and 'Nioh 3' (which achieved 1 million units sold, the fastest in the series). In FY2027 (ending March 2027), multiple new titles are also planned, and organizational changes in the IP Business Division and Marketing Division aim to enhance presence in the global market.

In addition to further expanding the development structure, full-scale use of the new office, Yokohama Symphostage, is scheduled to begin in fiscal year 2026 (FY ending March 2026). The company is promoting workplace environment improvements aimed at maximizing employee creativity. This is one of the main factors behind the projected profit decline in FY2027 (ending March 2027) and is positioned as an upfront investment to strengthen medium- to long-term development capabilities.

In FY2026 (ended March 2026), five newly licensed IP smartphone games began service. Existing licensed titles such as 'Sango Shinsen' also continued to contribute to revenue. The company will continue global sales of collaborative contract development titles with Nintendo, The Pokémon Company, Xbox Game Studios, and others, and will maximize back catalog revenue through multifaceted expansion of existing IP (power-up kits, remasters, sequels).

The basic policy is a consolidated annual total payout ratio of 50% or an annual dividend of ¥50 per share, and in FY2026 (ended March 2026), a dividend of ¥66 and a payout ratio of 50.1% were achieved. Cash flow from financing activities turned positive due to the disposal of treasury stock (income of ¥31,995 million). In FY2027 (ending March 2027), while maintaining the policy with a projected dividend of ¥48 (payout ratio of 50.3%), the company will continue growth investments (acquisition of tangible fixed assets of ¥24,023 million).

Last updated: July 19, 2026