| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥4936.8B | ¥4216.0B | +17.1% |
| Operating Income / Operating Profit | ¥1358.9B | ¥1019.4B | +33.3% |
| Profit Before Tax | ¥1406.7B | ¥1040.1B | +35.2% |
| Net Income / Net Profit | ¥1000.1B | ¥746.9B | +33.9% |
| ROE | 17.7% | 15.5% | - |
For the fiscal year ended March 2026, Revenue was ¥4936.8B (YoY +¥720.8B, +17.1%), Operating Income was ¥1358.9B (YoY +¥339.5B, +33.3%), Ordinary Income was ¥617.4B (YoY +¥132.7B, +27.4%), and Net Income was ¥1000.1B (YoY +¥253.2B, +33.9%), delivering a strong year of revenue and profit growth. Revenue was driven by the flagship Digital Entertainment Business (+21.5%), and Operating Margin improved materially to 27.5% (up +3.3pt from 24.2% prior year). Net margin was 20.3% (up +2.6pt from 17.7%), with both top-line expansion and margin improvement, and ROE improved to 19.1% (up +2.7pt from 16.4%), indicating enhanced shareholder capital efficiency.
【Revenue】Revenue was ¥4936.8B (YoY +17.1%), a substantial increase. By segment, the Digital Entertainment Business was ¥3702.3B (+21.5%), accounting for ~75% of total revenue, and grew into the core business with Segment Profit of ¥1360.1B (+37.5%), representing about 95% of consolidated operating profit. The Arcade Games Business was ¥252.9B (+11.0%), Gaming & Systems Business ¥430.6B (+1.0%), and Sports Business ¥491.5B (+1.9%)—all steady. By region, Japan was ¥3520.2B (+17.7%) (~71% of total), US ¥842.0B (+10.7%), Europe ¥351.0B (+26.0%), Asia & Oceania ¥223.6B (+19.3%), showing global growth. Gross profit was ¥2431.8B with a gross margin of 49.3% (up +2.1pt from 47.2%), reflecting a favorable high-margin title mix and higher digital (DL) ratio.
【Profitability】Cost of sales was contained at ¥2505.0B (+12.6%), and SG&A was ¥996.0B (+10.9%), growing below revenue growth and demonstrating positive operating leverage. As a result, Operating Income was ¥1358.9B (+33.3%) and Operating Margin rose significantly to 27.5% (up +3.3pt from 24.2%). Non-operating items included financial income of ¥37.9B and equity-method profits of ¥14.6B, offset by financial expenses of ¥4.7B, producing Ordinary Income of ¥617.4B (+27.4%). Note that Ordinary Income reflects mainly financial-related items outside operating profit; Profit Before Tax was ¥1406.7B (+35.2%). After corporate taxes of ¥406.5B (effective tax rate 28.9%), Net Income was ¥1000.1B (+33.9%), Net Margin 20.3% (up +2.6pt). Extraordinary items included Other income/(expense) △¥76.9B, which comprised losses on disposal of fixed assets ¥6.8B and impairment losses ¥81.0B; the one-off items were limited to about 6% of Operating Income. In conclusion, higher profitability in the core Digital business and company-wide cost efficiency drove the revenue and profit growth.
The Digital Entertainment Business recorded Revenue ¥3702.3B (YoY +21.5%), Segment Profit ¥1360.1B (YoY +37.5%), and Segment Margin 36.7% (up +4.3pt from 32.4%), achieving both revenue and margin expansion. The Arcade Games Business posted Revenue ¥252.9B (+11.0%), Segment Profit ¥67.8B (+4.8%), and Segment Margin 26.8% (down -0.1pt from 26.9%), showing revenue and profit increases with stable margins. The Gaming & Systems Business had Revenue ¥430.6B (+1.0%), Segment Profit ¥36.5B (△50.4%), and Segment Margin 8.5% (down -8.8pt from 17.3%), with margins substantially reduced due to project timing and product mix. The Sports Business recorded Revenue ¥491.5B (+1.9%), Segment Profit ¥34.1B (up from ¥22.3B, +52.9%), and Segment Margin 6.9% (up +2.3pt from 4.6%), with improved profitability. Others (such as gaming machines) had Revenue ¥59.5B and Segment Profit ¥5.4B, returning to profitability (prior year △¥5.3B). Adjustments were △¥68.0B (prior year △¥53.5B), reflecting increased corporate overhead.
【Profitability】ROE was 19.1% (up +2.7pt from 16.4%), driven primarily by improved Net Margin of 20.3% (up +2.6pt). Operating Margin was 27.5% (up +3.3pt) and Gross Margin 49.3% (up +2.1pt), aided by improved high-margin title mix and higher DL ratio. SG&A ratio was 20.2% (improved -1.1pt from 21.3%), demonstrating controlled expense growth versus revenue and clear positive operating leverage. 【Cash Quality】Operating Cash Flow / Net Income was 1.36x, a high level, and the accrual ratio was △4.8% (Operating CF ¥1356.6B - Net Income ¥1000.1B / Total Assets ¥7487.6B) negative, indicating strong cash conversion. However, working capital increased with Accounts Receivable +¥128.0B and Inventory +¥68.6B, resulting in a net outflow of ~¥10.1B (note: reported as 純流出約101億円—preserved as stated), somewhat constraining short-term cash conversion. 【Investment Efficiency】Total Asset Turnover was 0.659x (prior 0.634x), slightly improved. CapEx was ¥556.8B versus Depreciation ¥341.9B, yielding an Investment/Depreciation ratio of ~1.6x, indicating continued growth investment. 【Balance Sheet Health】Equity Ratio was 75.4% (up +2.9pt from 72.5%), D/E ratio 0.07x (interest-bearing debt ¥599.3B / Net Assets ¥5645.5B), and Net Cash approximately ¥2676B (Cash & Deposits ¥3275.6B - Interest-bearing debt ¥599.3B), signaling extremely strong financial position. Current ratio ~358% and Quick ratio ~343% indicate robust short-term liquidity.
Operating Cash Flow was ¥1356.6B (YoY +18.4%), 1.36x Net Income ¥1000.1B, indicating high quality. Non-cash charges such as Depreciation ¥341.9B and Impairment Losses ¥81.0B, and an increase in contract liabilities +¥56.5B contributed positively, but increases in Accounts Receivable △¥103.2B and Inventory △¥57.6B produced a net working capital outflow of ~¥10.1B. Corporate tax payments were ¥365.9B, about 26% of Profit Before Tax ¥1406.7B, a normal range. Investing CF was △¥553.2B, mainly capital expenditures of ¥556.8B, resulting in FCF of ¥803.4B (up from ¥467.4B, +71.9%). Financing CF was △¥519.0B, driven by dividend payments ¥247.2B, bond redemptions ¥200.0B, and lease liability repayments ¥71.7B. FX translation effects were +¥49.0B, increasing Cash & Cash Equivalents by ¥333.5B to an ending balance of ¥3275.6B (YoY +11.3%). OCF/EBITDA (Operating Income ¥1358.9B + Depreciation etc. ¥341.9B = ~¥1700.8B) was ~0.80x, affected by working capital increases, but FCF coverage (FCF / (Dividends + Buybacks)) was ~3.25x, indicating a high sustainability of shareholder returns.
Earnings quality is generally sound. Operating CF ¥1356.6B versus Operating Income ¥1358.9B yields Operating CF / Operating Income ~1.0x; on an EBITDA basis Operating CF / EBITDA is ~0.80x, somewhat restrained by working capital increases but still healthy. Non-operating income—financial income ¥37.9B (mainly interest and dividends) and equity-method income ¥14.6B—comes from recurring portfolio management and strategic investments rather than one-offs. Other income/(expense) △¥76.9B includes Impairment Losses ¥81.0B and Gains/Losses on Disposal of Fixed Assets ¥6.8B; the impairment is a one-time charge but limited to ~6% of Operating Income. Comprehensive income ¥1074.3B exceeded Net Income ¥1000.1B by ¥74.2B, mainly due to Foreign Currency Translation Adjustments ¥73.3B, reflecting yen depreciation benefits for overseas operations. The accrual ratio △4.8% (negative) indicates good cash realization of profits, and year-end increases in inventory and receivables are assessed as within a normal range for a growth phase.
FY2027 full-year guidance: Revenue ¥5050.0B (YoY +2.3%), Operating Income ¥1430.0B (YoY +5.2%), Net Income ¥1010.0B (YoY +1.0%), Forecast EPS ¥745.08, Forecast Dividend ¥112.0. Revenue growth of +2.3% is a substantial slowdown from prior year +17.1%, but Operating Income guidance +5.2% anticipates continued profit growth. Progress versus full-year guidance is Revenue 97.8%, Operating Income 95.0%, Net Income 99.0%, indicating the company has almost achieved its full-year targets and suggesting a conservative guidance. Forecast dividend ¥112.0 (payout ratio ~15.0%) is a large cut from prior year dividend ¥221.5, but the prior year included a high year-end dividend of ¥138.5 and a midterm dividend of ¥83.0, so the midterm-base still indicates maintained progressive returns. FY2027 is expected to see a slower growth pace as title life cycles stabilize and recurring revenue increases, but guidance assumes continuation of a high-profitability profile.
Annual dividend was ¥221.5 (interim ¥83.0 + year-end ¥138.5), with a Payout Ratio of 30.0% (dividends totaling ¥247.4B against Net Income ¥1000.1B). This was a large increase from prior-year dividend ¥66.0 (+235.6%), though prior year had a temporarily low dividend on a weighted-average shares basis; in absolute terms dividend payouts rose from ¥183.0B to ¥247.4B (+35.2%). With FCF ¥803.4B versus dividend payments ¥247.2B, FCF coverage is ~3.25x. Share buybacks were limited at ¥0.1B, and Total Return Ratio was ~30.8%, a conservative level. DOE (Dividend / Equity) is ~5.2%; given ROE 19.1%, a 30% payout ratio is sustainable. Cash & Deposits ¥3275.6B, Net Cash ~¥2676B, and D/E 0.07x provide substantial financial capacity to balance growth CapEx (¥556.8B) and dividends, leaving meaningful room for future dividend increases and buybacks. FY2027 dividend forecast ¥112.0 is +34.9% versus prior interim dividend of ¥83.0, maintaining a progressive return stance.
Title pipeline risk: High concentration in the Digital Entertainment Business (about 95% of consolidated operating profit) creates dependence; lifecycle variability of new and live-service titles and intensified competition could cause revenue volatility. The decline in Gaming & Systems Business margin from 17.3% to 8.5% highlights project timing and product-mix uncertainty.
Working capital pressure risk: Accounts Receivable +27.1% and Inventory +56.7% led to a working capital net outflow of ~¥10.1B and OCF/EBITDA of ~0.80x, constraining year-over-year. While this is within normal bounds for demand expansion, delays in inventory digestion or receivables collection could further reduce cash conversion and pressure growth investments and return capacity.
FX risk: Overseas sales ratio ~29% (US 17%, Europe 7%, Asia & Oceania 5%); as FX translation gains of ¥73.3B indicate, yen depreciation has been beneficial, but yen appreciation could reduce reported overseas earnings and valuations. Lease liabilities and other fixed-cost exposures may also be affected by currency movements.
収益性・リターン
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Return on Equity | 19.1% | 10.1% (2.2%–17.8%) | +9.0pt |
| Operating Margin | 27.5% | 8.1% (3.6%–16.0%) | +19.4pt |
| Net Margin | 20.3% | 5.8% (1.2%–11.6%) | +14.4pt |
Profitability metrics substantially exceed industry medians, indicating a top-tier high-margin profile within the IT & Communications sector.
成長性・資本効率
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 17.1% | 10.1% (1.7%–20.2%) | +7.0pt |
Revenue growth rate is 7.0pt above the median, placing the company on a top growth trajectory within the sector.
※Source: Company compilation
High-margin core IPs and margin improvement trend: The Digital Entertainment Business sustained a high Segment Margin of 36.7% (up +4.3pt from 32.4%), and consolidated Operating Margin rose to 27.5% (up +3.3pt). Rising DL ratio and expansion of live-service revenue are driving structural profitability improvements. FY2027 guidance also projects Operating Income +5.2%, supporting the sustainability of the high-margin profile.
Robust balance sheet and capacity to balance growth investment and returns: Equity Ratio 75.4%, Net Cash ~¥2676B, D/E 0.07x indicate substantial financial flexibility; FCF ¥803.4B comfortably covers dividends ¥247.2B and CapEx ¥556.8B. With a Payout Ratio 30% and DOE ~5.2%, there is ample room for progressive dividends and potential buyback expansion.
Monitor working capital increases and profit variability in the Gaming business: Accounts Receivable +27.1% and Inventory +56.7% have temporarily constrained cash conversion, and Gaming & Systems Business margin fell from 17.3% to 8.5%. These are within normal bounds for a growth-investment phase, but inventory turnover, receivables collection cycles, and recovery of project-based margins are key monitoring points.
This report is an AI-generated earnings analysis document produced by analyzing XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are compiled by our firm based on public financial statement data and are provided for reference only. Investment decisions are your responsibility; please consult a professional advisor as needed.