Konami Group Corp has had its rating affirmed at ‘A’, with a ‘stable’ outlook, by Japan Credit Rating Agency Ltd, a Japanese financial services company that publishes credit ratings to local companies and governments.
In the casino gaming segment, Konami Group operates outside Japan via Konami Australia Pty Ltd and U.S.-based Konami Gaming Inc.
Konami Group is also involved in the Japan-focused pachinko games segment, as well as digital entertainment – including video games and mobile games – and sports.
According to a report published on Thursday by Japan Credit Rating, Konami Group “is positioned as a leading company in each business field and has diverse sources of revenue”.
“Given the strong unity in the group, the company’s ratings reflect the group’s overall creditworthiness,” stated the rating agency.
“The company’s performance is strong, centred on its mainstay digital entertainment business,” it added.
The institution observed that Konami Group’s three other business segments had already “regained their pre-Covid-19 earnings power”.
“Japan Credit Rating believes that the group as a whole will continue to be able to generate a high level of cash flow,” said the institution, adding that there were “no changes” to Konami Group’s strong financial base.
The rating agency also noted that Konami Group “plans to achieve a record-high operating profit” for the fiscal year ending March 31 this year, a demonstration of healthy business volumes.
Group-wide revenue at Konami Group in the nine months to December 31 rose 22.8 percent year-on-year, to nearly JPY310.83 billion (US$2.19 billion), according to results published in February.
Konami Group reported revenue of JPY30.44 billion in its gaming and systems division – including casino equipment – in the period, up 2.8 percent from a year earlier.
The group revised upwards its earnings and dividend forecasts for the fiscal year ending March 31, 2025. The firm now expects to record revenue of about JPY412.00 billion, up from a previous forecast of JPY380.00 billion.
The company forecast an operating profit of JPY100.00 billion and a net profit of JPY70.00 billion, the latter up 17.6 percent from its previous estimate.
AloJapan.com