Konami FY26 Operating Profit Soars 33% to Record ¥135.9 Billion as Revenue Tops ¥493.7 Billion

Konami Group Corporation (TSE: 9766) reported consolidated full-year results for the fiscal year ended March 31, 2026 (FY3/2026) under IFRS, posting records across nearly every headline line. Revenue rose 17.1% year-on-year to a record ¥493,677 million, while operating profit jumped 33.3% to a record ¥135,891 million. Pre-tax profit climbed 35.2% to ¥140,667 million, and profit attributable to owners of the parent surged 33.9% to ¥100,013 million from ¥74,692 million — the first time the figure has crossed the ¥100 billion mark. Basic EPS rose to ¥737.80 from ¥551.00. The operating margin expanded to 27.5% from 24.2%, and ROE rose to 19.1% from 16.4%. Comprehensive income grew 47.6% to ¥107,431 million.

A record year built on Digital Entertainment

The defining driver of the year was the continued strength of Digital Entertainment, Konami's largest business. The segment benefited from sustained demand for the global Yu-Gi-Oh! trading-card game alongside contributions from key console and mobile titles — including eFootball and the franchise revivals Metal Gear Solid Δ: Snake Eater and the Silent Hill 2 remake. Together, the card-game and gaming-software lines lifted both the top line and margins, with the group's intellectual-property portfolio — spanning Metal Gear Solid, Silent Hill and Momotaro Dentetsu — supporting durable, repeatable revenue.

Broad-based gains across every segment

Beyond Digital Entertainment, growth was broad-based. The Amusement business — arcade and gaming machines — and Gaming & Systems — casino management systems for the global gaming industry — both contributed to the advance, as did the Sports division, which operates fitness clubs across Japan. The breadth of the improvement underscores that the record result was not a single-title spike: every reporting line moved in the same direction, lifting business profit 31.6% to ¥143,583 million and translating efficiency gains into a sharply higher operating margin.

Margins and returns step up

Profitability improved markedly. The operating margin widened to 27.5% from 24.2% a year earlier, reflecting both revenue leverage and a favorable mix shift toward high-margin digital and card-game revenue. Return on equity climbed to 19.1% from 16.4%, as the ¥100 billion net result was layered on a steadily growing equity base. The combination of double-digit revenue growth, an expanding margin and a 19% ROE places Konami among the higher-returning names in Japan's entertainment sector.

Balance sheet strong; cash generation robust

Konami ended the year with total assets of ¥748,765 million and owners' equity of ¥564,537 million, for an owners'-equity ratio of 75.4% — a notably conservative capital structure. Book value per share stood at ¥4,164.58. Operating cash flow reached ¥135,664 million, broadly matching operating profit, and period-end cash and equivalents climbed to ¥327,564 million, leaving the group with ample flexibility to fund game development, share returns and further investment.

Dividend lifted to ¥224; FY27 guides to further records

The FY3/2026 annual dividend was raised to ¥224.00 per share (¥112.00 interim + ¥112.00 year-end) from ¥221.50, for a payout ratio of 30.0%. For FY3/2027, management targets a payout ratio of about 30%. Full-year FY3/2027 guidance points to revenue of ¥505,000 million (+2.3%), business profit of ¥150,000 million (+4.5%), operating profit of ¥143,000 million (+5.2%), pre-tax profit of ¥143,000 million (+1.7%), and profit attributable to owners of ¥101,000 million (+1.0%), with EPS of ¥745.08 — implying continued, if more measured, record-setting after a year of exceptional growth.

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.