ENVALITH
コナミグループ株式会社 logo

KONAMI GROUP CORPORATION

9766・Prime Market・Information & Communication

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コナミグループ株式会社 logo
KONAMI GROUP CORPORATION9766

Business

Konami Group Corporation, founded in 1969, is a comprehensive entertainment company comprising 26 consolidated subsidiaries and 2 equity-method affiliates. Under the purpose statement "Sharing 'Moments of Thrill, Discovery and Emotion' with more people around the world," the company operates four segments: (1) the Digital Entertainment business, covering mobile, home video game, and card game offerings; (2) the Amusement business, engaged in the planning, production, and sale of arcade games; (3) the Gaming business, providing casino gaming machines and management systems primarily in North America and Australia; and (4) the Sports business, operating domestic sports facilities and schools. Its main customers span a wide range, including domestic and international game users, casino facility operators, and sports club members, and it conducts business on a global scale.

Business Model

In the Digital Entertainment business, the company deploys its proprietary IP such as "eFootball™," "Yu-Gi-Oh!," and "Pro Baseball Spirits" across multiple devices including mobile, home console, and PC, accumulating recurring paid-content revenue. In the Gaming & Systems business, in addition to product sales of casino equipment, the company builds up subscription-based revenue from its management system "SYNKROS®." In the Sports business, the company combines the operation of membership-based sports clubs with an asset-light model of contracted operations for local governments to secure stable revenue.

Company Strengths

eFootball™ has surpassed 1 billion cumulative downloads across the series as of April 2026, generating recurring revenue across multiple devices including consoles, PC, and mobile. Yu-Gi-Oh! Master Duel has reached 90 million downloads, and titles such as Pro Baseball Spirits A also maintain large user bases, making IP diversity and scale a source of competitive advantage.

Group-wide R&D expenses for the fiscal year under review totaled ¥62,610 million (of which ¥53,082 million was attributable to the Digital Entertainment business). METAL GEAR SOLID Δ: SNAKE EATER has shipped over 2 million units cumulatively worldwide, and the new Solstice™ cabinet won the "Best New Core Cabinet" award at the Global Gaming Expo, demonstrating development capabilities backed by substantial investment.

The company holds gaming equipment manufacturing and sales licenses across multiple jurisdictions, including the U.S. state of Nevada, as well as North America, Australia, and Asia, and has never had a license application rejected, suspended, or revoked since entering the market in 2000. The casino management system SYNKROS® has been deployed in the U.S. states of California and New Mexico, as well as on cruise ships, with its regulatory compliance capability and reliability forming a barrier to entry.

ENVALITH's Perspective

For FY2026 (ending March 2026), net sales were ¥493,677 million (up 17.1% year on year), operating profit was ¥135,891 million (up 33.3%), and profit attributable to owners of parent was ¥100,013 million (up 33.9%), achieving profit growth substantially exceeding the rate of sales growth. The operating margin improved to 27.5% (from 24.2% in the prior period). The structure in which the Digital Entertainment business accounts for 75% of sales and over 95% of business profit carries inherent revenue concentration risk, but the fact that multiple flagship IPs are simultaneously performing well, rather than relying on a single title, is a positive point. The forecast for FY2027 (ending March 2026) (net sales of ¥505,000 million, operating profit of ¥143,000 million) appears conservative, and there is room to consider potential upside.

Business profit in the Gaming & Systems business for FY2026 (ending March 2026) fell sharply to ¥3,650 million, down 50.4% from ¥7,359 million in the prior period. The main causes were US tariff measures and customer restraint ahead of the launch of the new cabinet "Solstice™." The new cabinet won Best New Core Cabinet at the "Global Gaming Expo," confirming its product competitiveness, and a demand recovery is expected from the next period onward. However, uncertainty remains regarding tariff trends as an external factor, and the timeline for new areas such as iGaming entry (Konami Online Interactive) to contribute to earnings remains unclear. The pace of recovery in segment margin should be closely monitored.

Business profit in the Sports business for FY2026 (ending March 2026) improved to ¥3,411 million (up 52.9% from ¥2,231 million in the prior period), but the business profit margin of 6.9% remains low compared with the group-wide figure of 27.5%. "Pilates Mirror" now operates 85 stores (32 newly opened during the period), and "Personal 30" is being rolled out within Tokyo, with the pace of new-format store openings continuing to accelerate. Rising health consciousness in the market environment is providing a tailwind, but rising prices across the board and higher energy costs are affecting the operating environment. Expansion of outsourced operations and school swimming program contracts, being asset-light, may contribute to improved profitability, and progress on medium-term margin improvement warrants continued attention.

Growth Strategy

Sustainable growth driven by four pillars: global expansion of core IP, adaptation to new platforms, expansion of the casino market, and new formats in the sports business

Continued strengthening of core IPs such as 'eFootball™' (over 1 billion cumulative downloads) and 'Yu-Gi-Oh! Master Duel' (90 million downloads). Accelerating expansion into new platforms and markets, including the start of pre-orders for 'eFootball™ Kick-Off!' on Nintendo Switch™ 2 and the global rollout of 'eBaseball™: PRO SPIRIT.' Expanding the global fan base through esports tournaments such as the FIFAe World Cup 2026™ (with participation from over 110 FIFA member countries/regions).

Full-scale rollout of the new 'Solstice™' cabinet series, the first in approximately six years, aiming to capture pent-up replacement demand. Entry into the iGaming market under the new brand 'Konami Online Interactive' to accelerate the digital expansion of popular content. Installation of SYNKROS® has been decided at multiple casino properties. Also promoting business expansion into specialty markets such as VLT, HHR, and Class II. Uncertainty remains regarding the impact of U.S. tariffs as an external factor.

Continued expansion of new business formats such as 'Pilates Mirror' (85 locations, with planned first openings in Hokkaido and Chiba Prefecture) and 'Personal 30' (opening of the 4th store planned). Building a stable, asset-light revenue base through contracted management of municipal sports facilities (operations to begin in April in Ibaraki, Tokyo, Shizuoka, Hyogo, Hiroshima, and Fukuoka) and expansion of schools contracted for swimming class operations. Aiming for medium-term improvement in business profit margin, supported by the tailwind of growing health awareness in the market.

Aiming to boost customer traffic through the launch of 'Demon Slayer: Nichirin Battle Slash,' the first arcade game based on the hugely popular anime. Enhancing brand recognition through esports initiatives such as 'BEMANI PRO LEAGUE -SEASON 5-.' Expanding overseas sales through the continued introduction of redemption games for the North American market. Rolling out diverse IP content through the online lottery service 'Konami Premium Kuji ONLINE.'

Last updated: July 19, 2026