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Konami gaming revenues down 51%

Revenue for the period totalled US$1.1bn.
Revenue for the period totalled US$1.1bn.

In the six months ending September 30, the Japanese group saw a 4.1 per cent drop in revenue.

Japan.- Japanese gaming giant Konami has reported a 4.1 per cent drop in revenue year-on-year for the six months ending September 30.

Revenues totalled JPY116bn (US$1.1bn). Profits before income taxes reached JPY20.2bn (US$195m), down 0.9 per cent on the same period in 2019.  

Konami blamed the closure of amusement facilities and casinos worldwide, as well as the suspension of sports tournaments due to the Covid-19 pandemic.

The company said: “For the six months ended September 30, 2020, due to global restrictions on business activities triggered by the coronavirus outbreak, it is expected that a world-wide economic recovery will take a significant amount of time in the face of difficulties to execute measures to avoid infection and restart social and economic activities at the same time.” 

Konami pointed out that its digital entertainment business saw profit, while operating profit increased by 31.8 per cent in the same period.  

Revenues dropped 26.9 per cent in the amusement centres business. The gaming and systems unit, which includes the supply of casino slots machines and gaming systems, was down 51.9 per cent. The sports segment fell 51.3 per cent.

The company said: “Although business gradually resumed from the end of May, it will take time for the market to fully recover under this severe business environment due to certain business restrictions and continued travel restrictions.” 

The company warned that the coronavirus outbreak is expected to continue to impact on future business activities but that is expects to improve earnings through cost reductions. 

In October, the AGEM Index saw prices for Konami stocks drop by 10.4 per cent. 

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