Koei Tecmo Holdings Co., Ltd.

In the Tokyo stock market on September 1, game and entertainment-related stocks were mostly sold, but individual stocks with catalysts were active. Square Enix Holdings surged sharply on reports of a possible going-private deal, with speculation of a tender offer. Koei Tecmo Holdings rebounded after SBI Securities raised its rating from "Neutral" to "Buy" and lifted its target price from 1,600 yen to 2,000 yen. Tomy hit a year-to-date high after Iwai Cosmo Securities upgraded its investment rating from "B+" to "A" and raised its target price from 3,000 yen to 4,300 yen. The Nikkei average continued to fall, closing the morning session at 66,215.34 yen, down 96.59 yen from the previous day.

On the morning of July 29, gaming and entertainment stocks led the buying on the Tokyo stock market, with Capcom reaching a new year-to-date high. The company reported the previous day that first-quarter operating profit rose 66.9 percent year on year to 41 billion yen, driven by the hit new title Pragmata and repeat sales of the Resident Evil series. Koei Tecmo Holdings rebounded on speculation of a rating upgrade by Iwai Cosmo Securities. Tsuburaya Fields Holdings extended its streak of limit-up gains to hit a new year-to-date high, after the market welcomed its first-quarter results, upward revisions to full-year earnings forecasts, and its medium-term management plan. AlphaPolis rose for a third straight day after announcing it had begun selling English-language print editions of its manga in North America and other markets.

Konami Group rose for a fourth consecutive day, reclaiming the 22,000 yen level for the first time since January. With major home video game stocks such as Koei Tecmo Holdings and Capcom reporting sharp revenue and profit growth in their first-quarter results, attention is growing on Konami Group's own first-quarter earnings, which are scheduled for release tomorrow, July 30.

Koei Tecmo Holdings announced its first-quarter results for the fiscal year ending March 2027, covering April to June. Revenue rose 17.4% year-on-year to 17.368 billion yen, while operating profit climbed 51.3% to 5.407 billion yen, achieving higher sales and profits. The performance was supported by the launch of two packaged games, the start of service for two smartphone games for which the group licensed its IP, and strong sales of major titles released in the previous fiscal year as well as back catalogue titles. Additionally, the company recorded non-operating income through investment management that closely monitored financial market trends, resulting in a 79.2% increase in ordinary profit to 15.719 billion yen and an 86.9% rise in net profit to 11.348 billion yen. Full-year forecasts remain unchanged, with revenue expected at 90 billion yen and operating profit at 32 billion yen.