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Rachael Price August 4, 2019 3 min read
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Konami’s Revenue Grows, Profits Dip amid Expansion
- Konami’s revenue climbs up to $63.8 million in Q1, 2019
- The company’s expansion continues overseas
- Operating profit slows down
Konami’s revenue has been increasing at the expense of operating profit. The company’s expansions continues with new installations and gaming cabinets.
Konami Reports Strong Revenue for First Fiscal Quarter
Konami Holdings Corp. has posted solid results over the first fiscal quarter that finished on June 30, with the company raking up $63.8 million in revenue. The overall results were 7.3% higher year-over-year.
Yet, some of the results weren’t as optimistic as the revenue with operating income plummeting by some 82% over the same period. The news was released on Thursday, August 1 by Konami. Results were driven by Konami’s international arm, Konami Australia Pty Ltd as well as Konami Gaming, Inc., the U.S. Subsidiary of the company. Commenting on the results, Konami explained that the rapid expansion of the company had incurred more costs than expected, with the company delivering high-margin products which installation had cost a lot.
One noteworthy point was the “Concerto” gaming cabinet which has helped the company improve its results in North America. Concerto has proven popular and in demand both in the United States and Europe as well as Latin America where fresh installations began in Q1.
Leveraging Konami’s Cabinets and Player Management System
Equally, the Concerto Opus cabinet has created a growing need for installed-based products in the same market, helping Konami position its product along with its cabinets. More highlights from the company’s recent efforts have been captured in Konami’s “Fortune Cup,” a racing game that has proven an absolute hit and “Synkros,” a player management system.
Player management systems are particularly popular and they have been one of the flagship products of rival companies, such as Playtech. Macau has proven an important market for the company as well, with Konami expecting to conclude several more installations in the territory by the end of the year, as confirmed by Matthew Loon, Product Manager at Konami Australia.
Despite the small dip in operating profit, Konami’s present goal remains fixed – boosting the sales and installation of products at whatever cost. Both the Concerto and KX 43TM cabinets.
Konami Excels Beyond iGaming
Konami’s markets hardly have to do with just iGaming and the Japanese company is involved with multiple other verticals, including pachinko games back in Japan, video and mobile games as well as sports.
Equally, the company has introduced quite a few changes and additions to its management staff over the past month, ahead of the current announcement. Lori Olk has been promoted to VP of Regulatory Compliance whereas Sina Miri became the head of research and development at the company.
Konami is pushing ahead with both growing its business as well as maximizing its outreach, as a recent marketing research found out. As a result, the company’s immediate profits may suffer a bit.
Rachael is a veteran gaming journalist with over 9 years of writing experience but has only just started within the gambling industry. She has built a keen interest within the iGaming sector over the years from exposure at events and intends to translate her passion into publications here at GamblingNews.com to keep our readers updated with the latest developments.
Business August 4, 2019