Revision of the Forecast

RNS Number : 4538Z

Konami Corporation

06 February 2014

 



February 6, 2014

FOR IMMEDIATE RELEASE

KONAMI CORPORATION Takuya Kozuki, Representative Director, President Shares listed: Tokyo, New York and London Stock Exchange Contact: Yasuyuki Yamaji, Corporate Officer, General Manager, Corporate Planning  Tel: [phone]

News Release: KONAMI CORPORATION Announces Revision of the Consolidated Forecast for the Fiscal Year Ending March 31, 2014

KONAMI CORPORATION (the "Company") hereby announces the revision of its consolidated earnings forecast for the fiscal year ending March 31, 2014, which was released on May 9, 2013 in its Consolidated Financial Results for the Year Ended March 31, 2013, in light of its recent business performance.

Revision of Consolidated Results Forecast (U.S. GAAP)

(Millions of yen, except percentages)
For the fiscal year ending March 31, 2014 (from April 1, 2013 to March 31, 2014)
	Net revenues	Operating income	Income before income taxes and equity in net income of affiliated company	Net income attributable to KONAMI CORPORATION	Net income attributable to KONAMI CORPORATION per share (yen)
Previous forecast (A) Released on May 9, 2013	232,000	27,000	26,000	15,500	111.82
Revised forecast (B)	210,000	10,000	11,500	6,500	46.89
Change (B - A)	(22,000)	(17,000)	(14,500)	(9,000)
Percentage Change (%)	(9.5)%	(63.0)%	(55.8)%	(58.1)%
<For reference>
Results for the year ended March 31, 2013	225,995	21,875	21,915	13,174	95.04

(Reasons for the revision)

The Company revised its consolidated earnings forecast for the fiscal year ending March 31, 2014 as stated above since it predicted the earnings results would finish below its previous forecast, mainly due to a delay in the development of native applications for content for social networks in our Digital Entertainment segment, a repetition of the advance investment including the transition to new membership plans and the introduction of the new services in our Health & Fitness segment and a postponement until the next fiscal year of the release of certain titles for pachinko and pachinko slot machines which we had planned to release in the three-month-period ended March 31, 2014.

Meanwhile, we predict a year-on-year increase in revenues and income in our Gaming & System segment due to a continuation of steady sales in the slot machines and the casino management systemsin the U.S. market.

End

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 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, Gaming & Systems business and Pachinko & Pachinko Slot Machines 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.

 

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