Konami Grp Corp Regulatory News (KNM)

30 Oct 2006 11:03

Konami Corporation30 October 2006 FOR IMMEDIATE RELEASE October 30, 2006 KONAMI CORPORATION2-4-1 Marunouchi, Chiyoda-ku, Tokyo, JapanKagemasa KozukiRepresentative Director and CEOStock code number: 9766 at TSE1 Contact: Noriaki YamaguchiRepresentative Director and CFOTel: +81-3-5220-0573 News Release: Forecast of Results For the six months ended September 30, 2006 Konami Corporation hereby announces the forecast of our results for the sixmonths ended September 30, 2006. 1. Forecast of Consolidated Results for the six months ended September 30, 2006 (Millions of yen) Net revenues Operating income Income before Net income income taxes(2006/4 - 9) 119,600 10,100 9,900 4,900 Forecast of Results for the sixmonths ended September 30, 2006(2005/4 - 9) 111,870 7,462 14,335 6,964 Results for the six months endedSeptember 30, 2005Increase (Decrease) 6.9% 35.4% (30.9)% (29.6)% We forecast our income before income taxes and net income for the six monthsended September 30, 2006 will decrease from the previous year due toapproximately Y6.9 billion of gain on sales of entire shares of TAKARA Co., LTDreported in the previous same period. However, we forecast our consolidatedoperating income for the six months ended September 30, 2006 will increase by35.4%, to Y10,100 million due primary to the increase in membership and theimprovement of revenue structure in the Health & Fitness Segment as well assolid sales of slot machines and Konami Casino management systems for NorthAmerica in the Gaming & System Segment. Meanwhile we are not revising our forecast of consolidated financial results forthe year ended March 31, 2007 from that announced in the consolidated financialstatements for the year ended March 31, 2006 filed on May 17, 2006. (Millions of yen) Net revenues Operating Income before Net income income income taxes(2006/4 - 2007/3) 275,000 29,000 28,500 16,000Forecast of FY2007 2. Forecast of non-consolidated financial results for the six months ended September 30, 2006 (Millions of yen) Net revenues Operating Ordinary Net income income income(2006/4 - 9) 4,700 2,600 2,500 2,300 Forecast of Results for the sixmonths ended September 30, 2006(2005/4 - 9) 51,016 5,179 9,408 11,197 Results for the six months endedSeptember 30, 2005 Increase (Decrease) (90.8)% (49.8)% (73.4)% (79.5)% On March 31, 2006, Konami Group shifted to a pure holding company structure. Konami Corporation is taking a role in decision-making and supervisoryfunctions, as a result, non-consolidated financial results will be as shownabove. There are no changes to the cash dividend forecast, which previously wasannounced in the non-consolidated financial results for the year ended March 31,2006 filed on May 17, 2006. (Interim dividend is JPY 27.00 per share anddividend for the year is JPY 54.00 per share.) Cautionary Statement with Respect to Forward-Looking Statements: Statements madein this document with respect to our current plans, estimates, strategies andbeliefs, including the above forecasts, are forward-looking statements about ourfuture performance. These statements are based on managementfs assumptions andbeliefs in light of information currently available to it and, therefore, youshould not place undue reliance on them. A number of important factors couldcause actual results to be materially different from and worse than thosediscussed in forward-looking statements. Such factors include, but are notlimited to: (i) changes in economic conditions affecting our operations; (ii)fluctuations in currency exchange rates, particularly with respect to the valueof the Japanese yen, the U.S. dollar and the Euro; (iii) our ability to continueto win acceptance of our products, which are offered in highly competitivemarkets characterized by the continuous introduction of new products, rapiddevelopments in technology and subjective and changing consumer preferences;(iv) our ability to successfully expand internationally with a focus on ourvideo game software business, card game business and gaming machine business;(v) our ability to successfully expand the scope of our business and broaden ourcustomer base through our exercise entertainment business; (vi) regulatorydevelopments and changes and our ability to respond and adapt to those changes;(vii) our expectations with regard to further acquisitions and the integrationof any companies we may acquire; and (viii) the outcome of contingencies. This information is provided by RNS The company news service from the London Stock Exchange