Capcom Going Strong - Q2 Earnings Results FY3/2020

October 30, 2019
Capcom Going Strong - Q2 Earnings Results FY3/2020

Despite a dip in net sales, Monster Hunter World: Iceborne shipped 2.8 million units supported by consistent popularity, driving profitability improvements.

Capcom announced that in its consolidated business results for the six months ended September 30, 2019, net sales were 37,272 million yen (down 14.0% year-over-year), operating income was 13,992 million yen (up 33.2% year-over-year), and ordinary income was 14,002 million yen (up 36.0% year-over-year).

Despite the dip in net sales year-over-year, Monster Hunter World: Iceborne did well, while sales growth of high-margin digital downloads, including major titles such as Resident Evil 2 and Devil May Cry 5, also contributed, resulting in the highest profit at all levels at the end of a second quarter in Capcom’s history.

The forecast for the consolidated business results for the current fiscal year ending March 31, 2020, remains the same as what was projected at the financial results announcement on May 7, 2019.

Besides Monster Hunter World, Devil May Cry and Resident Evil, Capcom is also doing well in the arcade business. Two new arcades have been opened in Tokyo and Osaka, resulting in increased net sales and operating income, up 13.3% and 24.6% compared to last year respectively.

In the pachinko side of the business, Capcom moved away from creating new ones and focused on licensing. Due to this, net sales are down 89.1%, but an operating income was obtained compared to last year when Capcom had an operating loss in this field.

Finally, in the “Other Businesses” category, which consists mostly of royalties of licensing and selling merchandise, net sales are up 16.4%, and operating income is up 7.0%.

Capcom had an amazing quarter that will bring a smile to investors' faces, but more importantly for gamers, they plan on spending the money on franchises we haven’t seen in a while.