REG - Konami Holdings Corp - Revision of Earnings and Dividend Forecast 201703 <Origin Href="QuoteRef">9766.T</Origin>

KonamiAnnouncement

31/01/2017 07:16

RNS Number : 5553V
Konami Holdings Corporation
31 January 2017
January 31, 2017
FOR IMMEDIATE RELEASE
KONAMI HOLDINGS CORPORATION
Takuya Kozuki, Representative Director, President 
Shares listed: Tokyo and London Stock Exchanges
Contact: Junichi Motobayashi, General Manager, Finance and Accounting
Tel: +81-3-5771-0222
Notice on Revision of the Consolidated Earnings Forecast 
and the Dividend Forecast for the Fiscal Year Ending March 31, 2017
KONAMI HOLDINGS CORPORATION (the "Company") hereby announces the revision of its consolidated earnings forecast and dividend forecast for the fiscal year ending March 31, 2017, which were released on May 10, 2016 in its Consolidated Financial Results for the Year Ended March 31, 2016, in light of its recent business performance.
1. Revision of the Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2017 
For the fiscal year ending March 31, 2017 (from April 1, 2016 to March 31, 2017) 
 (Millions of yen, except percentages)
Revenue
Operating profit
Profit before income taxes
Profit attributable to owners of the parent
Basic earnings per share (attributable to owners of the parent) (yen)
Previous forecast (A) released on May 10, 2016
210,000
25,000
24,000
15,000
110.91
Revised forecast (B)
225,000
36,000
35,000
24,000
177.46
Change (B - A)
15,000
11,000
11,000
9,000
----------
Percentage Change (%)
7.1%
44.0%
45.8%
60.0%
----------
<For reference>
Results for the year ended March 31, 2016
249,902
24,679
23,768
10,516
76.44
Reasons for the Revision 
For the nine months ended December 31, 2016, consolidated financial results of operating profit, profit before income tax and profit attributable to owners of the parent exceeded those previous consolidated forecasts for the fiscal year ending March 31, 2017.
In the Digital Entertainment segment, Yu-Gi-Oh! DUEL LINKS and JIKKYOU POWERFUL SOCCER, mobile games released during this third quarter ended December 31, 2016, performed strongly. Other mobile games, including JIKKYOU PAWAFURU PUROYAKYU and PROFESSIONAL BASEBALL SPIRITS A (Ace), also continued to remain steady.
In the Health & Fitness segment, the earnings results were steady due to improved quality and operational efficiency of the facilities.
In light of these business performances, the Company revised its consolidated earnings forecast for the fiscal year ending March 31, 2017 as set forth above since it predicted the earnings results would finish above its previous forecast.
2. Revision of the Dividend Forecast for the Fiscal Year Ending March 31, 2017
Annual dividends per share (yen)
Second quarter end
Year end
Annual total
Previous forecast released on May 10, 2016
----------
17.00 yen
34.00 yen
Revised forecast
----------
37.00 yen
54.00 yen
Year ended March 31, 2017 (actual)
17.00 yen
----------
----------
Year ended March 31, 2016 (actual)
10.50 yen
12.50 yen
23.00 yen
Reasons for the Revision 
Since the Company believes that the provision of dividends and the enhancement of corporate value are important ways to return profits to its shareholders,the basic policy is to emphasize payment of dividends as a target for more than 30% in the consolidated payout ratio. 
Based on this basic policy, once the Company had forecasted a year-end dividend would be 17.00 yen per share, it predicted profit attributable to owners of the parent would finish above its previous forecast as set forth above in the revision of its consolidated earnings forecast for the fiscal year ending March 31, 2017 and revised the year-end dividend forecast would be 37.00 yen per share. As a result, including the interim dividend of 17.00 yen per share, dividends on an annual basis will be 54.00 yen per share.
End
Cautionary statement with respect to forward-looking statements and other matters:
Statements made in this document with respect to our current plans, estimates, strategies and beliefs, including the above forecasts, are forward-looking statements about our future performance. These statements are based on management's assumptions and beliefs in light of information currently available to it and, therefore, you should not place undue reliance on them. A number of important factors could cause actual results to be materially different from and worse than those discussed in forward-looking statements. Such factors include, but are not limited to: (i) changes in economic conditions affecting our operations; (ii) fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen, the U.S. dollar and the Euro; (iii) our ability to continue to win acceptance of our products, which are offered in highly competitive markets characterized by the continuous introduction of new products, rapid developments in technology and subjective and changing consumer preferences; (iv) the timing of the release of new game titles and products, especially game titles and products that are part of historically popular series; (v) our ability to successfully expand internationally with a focus on our Digital Entertainment business and Gaming & Systems business; (vi) our ability to successfully expand the scope of our business and broaden our customer base through our Health & Fitness business; (vii) regulatory developments and changes and our ability to respond and adapt to those changes; (viii) our expectations with regard to further acquisitions and the integration of any companies we may acquire; and (ix) the outcome of existing contingencies.

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