Konami Slashes Profit Forecast For Year; Games Business Not To Blame

The company said that it now expects a 27 billion yen loss for the year, compared to an earlier forecast of an 11.5 billion yen profit. The new profit forecast was not due to a downturn in revenues -- the company did not change its revenue outlook. Rather, the large swing from postive to negative territory is due to a large loss in goodwill valuation related to its fitness club operations. While not seen as a fitness company in the USA, in Japan the company has a major stake in that market. As of March 31, 2002, Konami had a network of 187 directly operated health and fitness clubs across Japan, plus and 32 franchised clubs, that cater to all age groups -- from children through senior citizens. Konami also manufactures and sells sports and fitness equipment in Japan.