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Capcom Half-Year Figures Show Mixed Results

Capcom’s half-year financials have shown a 6.6% revenue increase for the Japanese-headquartered firm, thanks to the success of Resident Evil 4: Wii Edition in the West and other home titles, but the company's arcade game division dragging down prof
Officials from Japanese publisher and developer Capcom have announced details of the company’s first half year financial results for the six months ended September 30th, during which time revenues have risen but profit dipped. Net sales rose by 6.6 percent on the same period in 2006, to a total of ¥31,108 million ($279.9m). Operating income/profit was almost unchanged on the previous year at ¥3,058 million ($27.5m), while net income/profit saw a drop of 16.4 percent to ¥1,603 million ($14.4m). Capcom’s home video game department saw net sales rise by 3.7 percent to ¥16,323 million ($146.8m), with operating income/profit up 26.4 percent to ¥2,859 million ($25.7m). With sales now over 1 million units worldwide, the success of Resident Evil 4: Wii Edition in the West was proclaimed as one of the supporting factors for overall sales greatly exceeding projections during the six months. Sales of Apollo Justice: Ace Attorney in Japan, with over 500,000 copies sold, was another highlight for the company and the best performance yet for the series. The continued success of Monster Hunter Freedom 2 was also praised, alongside casual gamer title Wantame Uranai Channel. Results for the company’s arcade divisions were less impressive, with net sales for the company’s various arcade parks down 1.4 percent to ¥6,466 million ($58.1m) and operating income down by as much as 40.0 percent to ¥1,137 million ($10.2m). With no major releases the company’s coin-op manufacturing business saw net sales drop by 68.9 percent and experienced an operating loss of ¥971 million ($8.7m). The company’s forecasts for the full fiscal year, ending March 31st 2008, suggest net sales of ¥78,000 million ($701.4m) on net income of ¥6,200 million ($55.7m).

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