Revision of the Forecast for Mar.2016

RNS Number : 4115N

Konami Holdings Corporation

29 January 2016

 

January 29, 2016

FOR IMMEDIATE RELEASE

KONAMI HOLDINGS CORPORATION Takuya Kozuki, Representative Director, President Shares listed: Tokyo and London Stock Exchanges Contact: Junichi Motobayashi, General Manager, Finance and Accounting  Tel: [phone]

Notice on Revision of the Consolidated Forecast for the Fiscal Year Ending March 31, 2016, Recognition of Impairment and Other Losses on Non-current Assets and Extinguishment of Deferred Tax Assets

KONAMI HOLDINGS CORPORATION (the "Company") hereby announces the revision of its consolidated earnings forecast for the fiscal year ending March 31, 2016, which was released on May 8, 2015 in its Consolidated Financial Results for the Year Ended March 31, 2015, in light of its recent business performance.

The Company also announces the recognition of impairment and other losses on non-current assets and the partial extinguishment of deferred tax assets.

1.   Revision of the Consolidated Forecast for the Fiscal Year Ending March 31, 2016

For the fiscal year ending March 31, 2016 (from April 1, 2015 to March 31, 2016)
(Millions of yen, except percentages)
	Revenue	Operating profit	Profit before income taxes	Profit attributable to owners of the parent	Basic earnings per share (attributable to owners of the parent) (yen)
Previous forecast (A) Released on May 8, 2015	228,000	17,000	16,000	9,500	68.54
Revised forecast (B)	243,000	24,000	23,500	9,500	68.71
Change (B - A)	15,000	7,000	7,500	-
Percentage Change (%)	6.6%	41.2%	46.9%	-
<For reference>
Results for the year ended March 31, 2015	218,157	15,305	16,960	9,918	71.55

 

2.   Reasons for the Revision

The Company revised its consolidated earnings forecast for the fiscal year ending March 31, 2016 as set forth above since it predicted the earnings results would finish above its previous forecast, mainly due to strong performance in the Digital Entertainment segment of the mobile games, including JIKKYOU PAWAFURU PUROYAKYU and the World Soccer Collection series, and the computer and video games, including METAL GEAR SOLID V: THE PHANTOM PAIN which is the latest title in the METAL GEAR series. There is no change in profit attributable to owners of the parent from the previous forecast figures released in the "Consolidated Financial Results for the Year Ended March 31, 2015" dated May 8, 2015 mainly due to an extinguishment of deferred tax assets.

There is neither change in dividends forecast from an annual total dividend per share of 21.0 yen (the second-quarter-end dividend per share of 10.50 yen and the year-end dividend per share of 10.50 yen).

3.   Recognition of Impairment and Other Losses on Non-current Assets

In light of rapid changes in market structure surrounding the Pachislot & Pachinko Machine business, including the trend of pachinko market shrinking and strengthening the regulations for pachislot and pachinko machines, we determined to process selection and concentration of the titles for restructuring of the pachinko machine business. As a result, during the three-month-period ended December 31, 2015, impairment on property, plant and equipment of 532 million yen and impairment and other losses on intangible assets of 7,788 million yen were recognized, included in other income and other expenses, net in the consolidated statement of profit or loss.

4. Extinguishment l of Deferred Tax Assets

As a result of our careful consideration to the recoverability of the deferred tax assets based on projections for future business performance, we determined to extinguish a part of deferred tax assets and recognize deferred tax expenses of 4,117 million yen during the three-month-period ended December 31, 2015.

End

Cautionary statement with respect to forward-looking statements and other matters:

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 management's 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) the timing of the release of new game titles and products, especially game titles and products that are part of historically popular series; (v) our ability to successfully expand internationally with a focus on our Digital Entertainment business and Gaming & Systems business; (vi) our ability to successfully expand the scope of our business and broaden our customer base through our Health & Fitness business; (vii) regulatory developments and changes and our ability to respond and adapt to those changes; (viii) our expectations with regard to further acquisitions and the integration of any companies we may acquire; and (ix) the outcome of existing contingencies.

 

END

 

 

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