Forecast for Interim Results

Konami Corporation 30 October 2006 FOR IMMEDIATE RELEASE October 30, 2006 KONAMI CORPORATION 2-4-1 Marunouchi, Chiyoda-ku, Tokyo, Japan Kagemasa Kozuki Representative Director and CEO Stock code number: 9766 at TSE1 Contact: Noriaki Yamaguchi Representative Director and CFO Tel: +81-3-5220-0573 News Release: Forecast of Results For the six months ended September 30, 2006 Konami Corporation hereby announces the forecast of our results for the six months ended September 30, 2006. 1. Forecast of Consolidated Results for the six months ended September 30, 2006 (Millions of yen) Net revenues Operating income Income before Net income income taxes (2006/4 - 9) 119,600 10,100 9,900 4,900 Forecast of Results for the six months ended September 30, 2006 (2005/4 - 9) 111,870 7,462 14,335 6,964 Results for the six months ended September 30, 2005 Increase (Decrease) 6.9% 35.4% (30.9)% (29.6)% We forecast our income before income taxes and net income for the six months ended September 30, 2006 will decrease from the previous year due to approximately Y6.9 billion of gain on sales of entire shares of TAKARA Co., LTD reported in the previous same period. However, we forecast our consolidated operating income for the six months ended September 30, 2006 will increase by 35.4%, to Y10,100 million due primary to the increase in membership and the improvement of revenue structure in the Health & Fitness Segment as well as solid sales of slot machines and Konami Casino management systems for North America in the Gaming & System Segment. Meanwhile we are not revising our forecast of consolidated financial results for the year ended March 31, 2007 from that announced in the consolidated financial statements for the year ended March 31, 2006 filed on May 17, 2006. (Millions of yen) Net revenues Operating Income before Net income income income taxes (2006/4 - 2007/3) 275,000 29,000 28,500 16,000 Forecast of FY2007 2. Forecast of non-consolidated financial results for the six months ended September 30, 2006 (Millions of yen) Net revenues Operating Ordinary Net income income income (2006/4 - 9) 4,700 2,600 2,500 2,300 Forecast of Results for the six months ended September 30, 2006 (2005/4 - 9) 51,016 5,179 9,408 11,197 Results for the six months ended September 30, 2005 Increase (Decrease) (90.8)% (49.8)% (73.4)% (79.5)% On March 31, 2006, Konami Group shifted to a pure holding company structure. Konami Corporation is taking a role in decision-making and supervisory functions, as a result, non-consolidated financial results will be as shown above. There are no changes to the cash dividend forecast, which previously was announced in the non-consolidated financial results for the year ended March 31, 2006 filed on May 17, 2006. (Interim dividend is JPY 27.00 per share and dividend for the year is JPY 54.00 per share.) Cautionary Statement with Respect to Forward-Looking Statements: Statements made in this document with respect to our current plans, estimates, strategies and beliefs, including the above forecasts, are forward-looking statements about our future performance. These statements are based on managementfs assumptions and beliefs in light of information currently available to it and, therefore, you should not place undue reliance on them. A number of important factors could cause actual results to be materially different from and worse than those discussed in forward-looking statements. Such factors include, but are not limited to: (i) changes in economic conditions affecting our operations; (ii) fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen, the U.S. dollar and the Euro; (iii) our ability to continue to win acceptance of our products, which are offered in highly competitive markets characterized by the continuous introduction of new products, rapid developments in technology and subjective and changing consumer preferences; (iv) our ability to successfully expand internationally with a focus on our video game software business, card game business and gaming machine business; (v) our ability to successfully expand the scope of our business and broaden our customer base through our exercise entertainment business; (vi) regulatory developments and changes and our ability to respond and adapt to those changes; (vii) our expectations with regard to further acquisitions and the integration of any companies we may acquire; and (viii) the outcome of contingencies. This information is provided by RNS The company news service from the London Stock Exchange
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