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Konami earnings up 90% on MGS4

Significant increase reported

Tokyo, Japan-based Konami on Thursday reported a significant increase in net income for the six months ended September 30 due to strong uptake of Metal Gear Solid 4 for PS3.

Net income for the period was 12 billion yen ($124 million) compared to 6.3 billion yen for the same period a year prior.

Revenues were up just 10 percent to 146 billion yen, while operating income was up 75 percent to 22.8 billion yen.

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Metal Gear Solid 4 released in June 2008, with Konami recording "steady" sales of the game. Other revenue-driving software included Winning Eleven, Dance Dance Revolution and Jikkyou Pawafuru Puroyakyu (known as MLB Power Pros in the U.S.).

The MGS franchise sold over 4 million units during the six months, driving Konami's PS3 software unit sales from 1 percent of total sales for the April-September period 2007 to 38 percent for the comparable period 2008.

In addition, for April-September 2008, the rest of the unit sales share was as follows: PS2--18 percent; Wii--17 percent; PSP--11 percent; DS--11 percent; Xbox 360--3 percent; PC--1 percent.

Konami's digital entertainment business generated 93 billion yen in sales, a 25 percent increase. The company's health and fitness segment generated revenues of 45.5 billion yen; gaming and system (arcade) 7.9 billion yen; and "other and eliminations" 564,000 yen.

The company said it will be focusing primarily on the North American and European videogame software markets "where growth is more stable than in the mature domestic Japan market."

For the full fiscal year ending March 2009, Konami expects net revenues of 330 billion yen, operating income of 45 billion yen and net income of 26 billion yen.

Article supplied by Edge-Online

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