The Japanese giant’s digital entertainment segment, including eSports, helped offset revenue fall in other areas.
Japan.- Japanese giant Konami has reported strong performance in its digital division, helping to partially offset a drop in revenue due to the pandemic.
The group posted a 6.3 per cent year-on-year decrease in total revenue for the second quarter (Q2) of 2020 at 52,887 million yen (US$501.1 million).
Operating profits were 6,772 million yen (US$64.1 million), down 32.4 per cent on the same quarter in 2019, and profit before income taxes was 6,284 million yen (US$59.5 million), down 35.3 per cent.
But Konami saw strong growth in its Digital Entertainment business in the quarter, including from esports. Revenue for the segment reached 42,840 million yen (US$405.9 million), an increase of 36 per cent year-on-year. Profits in the segment were 15,309 million yen (US$145 million), up 57.9 per cent on Q2 2019.
The company said “measures to avoid coronavirus outbreak, such as temporal closure of amusement facilities worldwide and casino facilities overseas, were taken.”
Due to the temporary closure of amusement facilities and the slow recovery of visitor numbers, the amusement segment saw a 11.8 per cent drop in revenue year-on-year to 2,874 million yen (US$27.2 million) and a 240 million yen (US$2.27 million) loss.
Konami’s gaming business also suffered due to operations being suspended due to the pandemic.
Total gaming revenue during for the quarter amounted to 2,977 million yen (US$28.2 million), a 56.4 fall against the same period in 2019. Losses amounted to 925 million yen (US$8.76 million).
The company said: “Although casino facilities have gradually resumed operations from the end of May in the trend of reopening the economy in phase, market recovery will take more time.
Temporary closure of sports clubs across Japan also injured the firm’s sports business. It saw sales drop 68.9 per cent year-on-year to 4,739 million yen (US$44.9 million) and losses of 1,101 million yen (US$10.4 million).
Konami said: “Under such circumstances, state-of-emergency declaration from government and business suspension request from local governments forced us to take measures to avoid coronavirus outbreak, such as temporal closure of both directly-managed and outsourced facilities and shortening business hours, from April to May. As a result, total revenue from this business decreased.”