Half-year revs rise, profits fall at Konami

Publisher's other businesses make up for sagging game sales; Winning Eleven and Jikkyou baseball titles performing well.

Japanese publisher Konami today released its financial results for the first six months of its fiscal year, heralding increased revenues over those of the same period last year, but a decrease in net profit.

For the six months ended September 30, 2006, Konami reported net revenues of 119.6 billion yen ($1 billion), up from last year's first-half take of 111.9 billion yen (about $951 million). However, the publisher didn't get to keep as much of that money, as its net income for the period was down from to 5.1 billion yen ($43 million) from almost 7 billion yen ($59 million) previously.

In defense, Konami pointed out that the previous year's profit was driven by a 6.9 billion yen ($58 million) sale of its stake in Takara (representing more than 22 percent of the company) in April 2005. Taking that out of the equation, the company's profit would have increased alongside its revenues for the six-month span.

But no matter how one looks at the numbers, the publisher's sales and profits were down for the digital entertainment division that includes its gaming operations. That division reaped 63.5 billion yen ($540 million), down from 66.7 billion yen ($567 million) for the April-September period of 2005, while its profits sagged year-over-year from 13 billion yen ($110 million) to 11.4 billion yen ($97 million).

As for specific games, Konami pegged the latest entries in the Winning Eleven and Jikkyou Pawafuru Puro Yakyu baseball series as steady performers, while North American sales of Dance Dance Revolution SuperNOVA were described as "firm."

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28 comments
junk56
junk56

this is what happens when MGS isn't released.

DeathgiverX
DeathgiverX

Yeah, Silent Hill needs a serious gameplay overhaul similar to what Capcom did with RE4. And just using the Wiimote is not going to get it done. But neither is putting it on the PS3 for the graphics. Regardless of the system (though it will unfortunately, probably be only PS3) they need to start addressing the problems of the series. It is broke, now fix it.

Doolum
Doolum

i hope the best for Konami..one of the best game company around.Next year for sure will be a better year for them

WolfSkill5544
WolfSkill5544

still good for konami, they just getting ready for next year big titles for the next-gen.

RahKayne
RahKayne

Konmai's the best the only reason why the profits fell is because they are investing. And probably nextgen projects.

Supreme_Fantasy
Supreme_Fantasy

Konami is doin great! With the WE9 and the future release WE2007 is gonna be a profits for Konami!

Schillinger
Schillinger

Sorry kavadias but SH really needs to be brought to hardware that can bring the environments to life. Whilst I'm all for gameplay innovation, SH's gameplay has always been tertiary to the standard setting graphics, story, atmosphere and sound. Playing it slightly differently on essentially current gen hardware wouldn't be the right step for the series.

Lazy_Boy88
Lazy_Boy88

Why is this even reported here... nothing really changed. It's even more pointless than "Sony's stock plummets 2.3%!!!".... a change of like a dollar.

Myugenjin
Myugenjin

Believe it or not (last i recall) KNM actually makes casino games. Ya know those roulette/poker tables and slot machines at Casinos. Thats whats eating at their profits.A billion in six months, thats more then Nintendo's revenue for a year and how many games a year do they put out??? They need to stick to games and become a powerhouse like Capcom, ATVI, ERTS, & THQI! We need a GOOD nextgen CONTRA that'll smoke GoW or Halo 3 regardless of system!

kavadias1981
kavadias1981

Ooh a Silent Hill on the Wii would be ace. Just imagine moving a flashlight around with the Wii-mote and some innovative use for the controller's internal speaker. If you are reading this Konami...DO IT

jakeboudville
jakeboudville

[This message was deleted at the request of the original poster]

neo_412
neo_412

Konami is awesome. I think the last Konami game I bought though was MGS3.

zeroking420_666
zeroking420_666

Konami needs to make Silent Hill 5: Torumented, with revamp all the controller and graphics with new camera, new monster, go back to silent hill, make your own choice in which to advance through the game also new weapons, Big Bosses, with new twist to the storyline, more gore,disturbing,creppy, gameplay. In this game I want to be able to "feel" like I'm acculy there and this is happing and not just playing another Survival-Horror game. Than Konami will make big sales. Also mgs4 will bring in the big bucks also.

Alienspade
Alienspade

once MGS4 and MGS Ops is out there profit will riase once again and hopefuly when they make another DDR that has good songs then theyll be back on track nothing to worry about hopefuly

wenbin09
wenbin09

maybe konami should start making region free winning eleven!!

Gmacrusher
Gmacrusher

Man Konami is a good company but reasently i havent seen games from them i am waiting for a good games in the future like they did in the past

Mar044
Mar044

I love konami but I wish that copies of sukiden series wasn't harder to find the the fountain of youth. Maybe the should reprint all their sukiden games to earn more money.

KingofTrolls
KingofTrolls

Come on Konami get your Sh*t together you make great games whats going on anyway?

RaiKageRyu
RaiKageRyu

At least Konami seems to be steady compared to all most of the other ones.

wizardps2
wizardps2

Lets see if SILENT HILL FOR THE PS3 ITS COOKING NOW?? IMAGINE THE GREAT!! SACARE TO HAVE!!!!! PS3 RULES!!!

juanfraino
juanfraino

Winnig eleven is great. Go konami!! Gimme my Castlevania PoR now!!!

wizardps2
wizardps2

Lets see if SILENT HILL FOR THE PS3 ITS COOKING NOW?? IMAGINE THE GREAT!! SACARE TO HAVE!!!!! PS3 RULES!!!

wizardps2
wizardps2

[This message was deleted at the request of the original poster]

mumotuma_man
mumotuma_man

[This message was deleted at the request of a moderator or administrator]

mumotuma_man
mumotuma_man

[This message was deleted at the request of a moderator or administrator]