Capcom Records Best-Ever First Quarter Sales and Profit

Capcom released its financial results for the three months ended June 30, 2020, which saw first-quarter record numbers in net sales and profit.

In the first quarter of the current fiscal year, net sales were 23.72 billion yen, which is about 32.2% year-over-year. The operating income was 10.71 billion yen to put it up 37.9% year-over-year. Net income attributable to owners of the parent was around 7.8 billion yen to be up 44.2% year-over-year. As you can see, the first quarter saw marginal increases across the board.

The earnings forecast for the fiscal year ending March 31, 2021 hasn’t changed since we saw the previous financial results for the fiscal year ended March 31, 2020.

The Digital Contents business saw an increase through digital sales growth of major new titles and catalog titles. This helped Capcom achieve its highest net sales and highest levels of all profit items for a first quarter. Resident Evil 3 delivered solid sales which helped boost cumulative sales of the Resident Evil series to 100 million units. Continued growth in sales for titles such as Monster Hunter World: Iceborne and Resident Evil 2 also helped drive profit. Net sales were 21.476 billion yen, about 53.7% more than the previous fiscal year. Operating income was 11.8 billion yen, an increase of 52.6% from the previous year’s.

Like all arcade business in Japan, Capcom’s arcade operations took a heavy blow from stores being forced to close due to the impact of COVID-19. While business subsequently resumed, it wasn’t enough to recover to normal levels. Overall, there was a significant decrease in sales and profit. Net sales, in particular, dropped by about 56.3% from the previous fiscal year with an operating loss of 554 million yen.

The Amusement business segment also saw a big drop because of the closures and suspended operations due to COVID-19. Net sales dropped by 19.4% from the same term in the previous fiscal year. Operating income here was 71 million yen, down 46.7% from the previous fiscal year.

The “Other Businesses” include profit from merchandise, film adaptations using intellectual property, eSports, and more. Net sales were 879 million yen, so that’s down 14.2% from the previous fiscal year. Operating income was 511 million yen which was about 20.2% less than the same term in the previous fiscal year.