Last checked at 13 May 2021 08:50
May 13, 2021 | ||
FOR IMMEDIATE RELEASE | ||
KONAMI HOLDINGS CORPORATION | ||
Kimihiko Higashio, Representative Director, President | ||
Shares listed: | Tokyo and London Stock Exchanges | |
Contact: | Junichi Motobayashi, Corporate Officer, General Manager, Finance Division | |
Tel: | +81-3-6636-0573 | |
News Release: Notice Regarding Difference between Consolidated Results for the Fiscal Year Ended March 31, 2021 and 2020, Recording of Impairment Loss and Loss on Valuation of Shares of Subsidiaries (Non-Consolidated) |
KONAMI HOLDINGS CORPORATION (the "Company") had not disclosed consolidated earnings forecast for the fiscal year ended March 31, 2021, however, difference between the consolidated results for the fiscal year ended March 31, 2021 and 2020 meet the Timely Disclosure Rules. The Company hereby announces the difference resulted from increases in revenues and profits, despite of the impact of coronavirus outbreak, as follows.
In addition, the Company hereby announces recording of impairment loss on a consolidated basis and loss on valuation of shares of subsidiaries on a non-consolidated basis for the fiscal year ended March 31, 2021.
1. Difference between the Consolidated Results for the Fiscal Year Ended March 31, 2021 and 2020
(Millions of yen, except percentages) | |||||||||
Revenue | Business profit | Operating Profit | Profit before income taxes | Profit for the year | Profit attributable to owners of the parent | Basic earnings per share (attributable to owners of the parent) (yen) | |||
Year ended March 31, 2020 (A) | 262,810 | 44,297 | 30,972 | 30,395 | 19,897 | 19,892 | 147.26 | ||
Year ended March 31, 2021 (B) | 272,656 | 64,164 | 36,550 | 35,581 | 32,274 | 32,261 | 242.17 | ||
Change (B - A) | 9,846 | 19,867 | 5,578 | 5,186 | 12,377 | 12,369 | ****** | ||
Percentage Change (%) | 3.7 | 44.8 | 18.0 | 17.1 | 62.2 | 62.2 | ****** | ||
Reason for the difference
Revenues of some business segments were impacted from temporal closures to prevent the coronavirus outbreak as well as world-wide economic slowdown, however, strong performance of products and services in the Digital Entertainment business including mobile games, computer and video games and card games led to consolidated results for the fiscal year ended March 31, 2021 that exceeded consolidated results for the fiscal year ended March 31, 2020.
2. Recording of impairment loss
The company assessed the recoverability of assets which was impacted from decrease in revenues due to the temporal closure of both directly managed sports clubs and outsourced facilities and shortened business hours in line with state-of-emergency declaration from government and business suspension request from local governments, moreover, from prolonged coronavirus outbreak. As a result, impairment loss of Y18,717 million for property, plant and equipment and trademarks was recorded since the recoverable amount fell below the carrying amount.
3. Loss on valuation of shares of subsidiaries (Non-consolidated)
As for the shares of Konami Sports Co., Ltd., a consolidated subsidiary of the Company, loss on valuation of shares of subsidiaries of Y48,424 million was recorded as extraordinary losses for the year ended March 31, 2021 on a non-consolidated basis, considering decrease in net assets of Konami Sports Co., Ltd. that was impacted from coronavirus outbreak.
The loss on valuation of shares of subsidiaries was recorded in non-consolidated financial statements only, and was eliminated in consolidation.
End
Cautionary statement with respect to forward-looking statements and other matters:
Statements made in this document with respect to our current plans, estimates, strategies and beliefs, including the above forecasts, are forward-looking statements about our future performance. These statements are based on management's assumptions and beliefs in light of information currently available to it and, therefore, you should not place undue reliance on them. A number of important factors could cause actual results to be materially different from and worse than those discussed in forward-looking statements. Such factors include, but are not limited to: (i) changes in economic conditions affecting our operations; (ii) fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen, the U.S. dollar and the Euro; (iii) our ability to continue to win acceptance of our products, which are offered in highly competitive markets characterized by the continuous introduction of new products, rapid developments in technology and subjective and changing consumer preferences; (iv) the timing of the release of new game titles and products, especially game titles and products that are part of historically popular series; (v) our ability to successfully expand internationally with a focus on our Digital Entertainment, Amusement, and Gaming & Systems businesses; (vi) our ability to successfully expand the scope of our business and broaden our customer base through our Sports business; (vii) regulatory developments and changes and our ability to respond and adapt to those changes; (viii) our expectations with regard to further acquisitions and the integration of any companies we may acquire; and (ix) the outcome of existing contingencies.