Konami Releases 2005 Fiscal Half Results, Restructures Company

Konami has released its financial results for the first half of fiscal year 2005, a six-month period ending September 30, 2005. Compared to the same period in FY 2004, the first half of the year was a slight improvement: the company posted revenues of 118 billion yen ($1.01 billion USD), up from 2004's net revenue 114.01 billion yen ($971 million USD) in the first half of 2004. The half-year statement is the consolidated result of all of Konami's multiple divisions: in addition to the company's computer and video game business, it also maintains a non-video gaming division, and a health and fitness division. In video games, sales were propelled chiefly by the company's soccer titles such as Winning Eleven Soccer 8 and Pro Evolution Soccer, as well as Mah-Jong Fight Club in arcades and Yu-Gi-Oh! Online. For the remaining half of the year, Konami is expecting year-end net revenue of 270 billion yen ($2.3 billion USD). Upcoming software expected to grant high returns includes Metal Gear Solid 3: Subsistence for PlayStation 2, Metal Gear Ac!d 2 for PSP, Suikoden V for PS2, and others. In addition to the financial news, Konami announced it will be reorganizing its business to merge several divisions together. Konami Corporation will merge with Konami Digital Entertainment and Konami's business segment to become a single unit, a holding company named Konami Corporation. The former Konami Digital Entertainment partner will become a subsidiary of Konami Corporation, and will consist of Konami's Japanese game development and publishing operations. The American, Asian, and European game operations will continue as normal. Beyond that, The Konami Sports Life and Konami Sports divisions will merge to become a single Konami Sports division, which will become a wholly owned subsidiary of Konami Corporation. The entire reorganization scheme is due to be reviewed by the shareholders in a January 26, 2006 meeting.