Zona de Azar US – Konami Revenues Fall 3% in the 2nd Quarter of 2024
USA – August 7, 2024 www.zonadeazar.com Konami Group Corp. reported a 24% increase in revenue to 90 billion yen (575 million euros) in the second quarter of 2024, despite a 3% drop in gaming and systems revenue.
Revenue from the Games and Systems segment fell to 9.7 billion yen (62.2 million euros) in the second quarter, generating a segment profit of 1.3 billion yen, a 35% decrease compared to to the previous year.
“In the gaming industry, the North American and Australian markets remained strong,” Konami said in its second quarter business update. “Markets continue to experience the constant introduction of new products by competing slot machine manufacturers, providing new placement opportunities.”
This has helped Konami’s slot machine business increase unit sales of core products such as DIMENSION 49, DIMENSION 27 and the new DIMENSION 43×3 machines, which feature large combination screens.
In terms of gaming content, Konami said its Unwooly Riches series has begun operating in casinos across the North American market and has been well received by customers. Additionally, Konami recently introduced the Charms Full Link series to the market and has seen sales of its Fortune Bags and Fortune Pots series of titles increase.
The supplier has maintained strong sales of its Bull Rush series of games, which are popular in New South Wales, Australia’s largest casino market. Additionally, sales of the K-pow! Pig remained stable after the release of the latest release, Noble Warrior.
During the second quarter, Konami’s SYNKROS casino management system was installed at several large casinos, including Ocean Casino Resort in New Jersey, JACK Cleveland Casino and JACK Thistledown Racino in Ohio.
Overall, Konami Group’s revenue increased 24% to ¥90 billion in the second quarter, comprised of ¥25.8 billion from product sales and ¥64.2 billion from services and other revenue.
Total cost of revenue was 14% higher to ¥46.3 billion, while selling, general and administrative expenses increased 26% to ¥18.6 billion. As a result, operating profit grew 46% to ¥25.1 billion, and quarterly profit increased 43% to ¥19.2 billion.
The company ended the second quarter with cash and cash equivalents of ¥273.9 billion, up from ¥218.2 billion last year.
Shares of Konami Group Corporation (T:9766) closed down 11.69% on Monday in Tokyo at ¥10,085.00 per share, while the Nikkei 225 index recorded its biggest daily drop in history, closing with a drop of more than 12%.
Edited: @_fonta www.zonadeazar.com
