Konami Posts Lower Profits Despite Increased Sales

Officials from major Japanese developer and publisher Konami have announced the company's financial results for the six months ended September 30, 2006, which included higher revenue, despite an overall decline in profit for the period. Konami saw revenue of ¥119.6 billion ($1.02 billion) during the six month stretch, up from the ¥111.9 billion ($950.7 million) reported during the same period a year ago. Profits, however, dropped off 26.6 percent for the six month period to ¥5.1 billion ($43.3 million) from the same time a year ago. According to Konami, much of this decline resulted from sales of shares of Takara Co. during the 2006 fiscal year, which at that time boosted the company's bottom line for the period. Nonetheless, continued demand for the company's soccer title Winning Eleven 10, as well as the title's European version, Pro Evolution Soccer 5 for the PlayStation 2 and Xbox, was behind the revenue increase. Strong sales of Konami's slot machines and its Casino Management Systems in North America further added to the company's performance for the period. For the entirety of fiscal 2007 ending in March, Konami is forecasting an operating profit of ¥29 billion ($246.5 million), which if accurate would represent a marked increase over the previous year's ¥2.5 billion ($21.2 million). Konami has several high profile video game titles poised to reach retail, including the quirky adventure game Elebits for the Wii, Pro Evolution Soccer 6 for the Xbox 360, and Metal Gear Solid 4 for the PlayStation 3. The company also has high hopes for the PlayStation 3 version of the Japanese arcade game Mah-Jong Fight Club Online, though this title is likely to remain a Japan only release.