Capcom released its first-quarter earnings report for the current fiscal year (April-June 2024), and although net income was down 32.5% from the same period last year and profit was down 46.4% from the same period last year, the Japan issuer said it was on track to meet its earnings forecast for the year and that all of its business units beat expectations in the latest quarter. Capcom's Arcade Division, Amusement Parks and other businesses all saw year-over-year growth in the quarter.
Capcom blamed the year-over-year decline in revenue on Street Fighter 6 in June last year (as the year-over-year quarter was very good due to Street Fighter 6), noting that most of its new titles were released in the second half of the current fiscal year (October 2024-March 2025), resulting in almost no new titles being released in the first half of the current fiscal year (April-September 2024) that did not perform so well compared to the same period last year. Capcom's current fiscal year does not end until March 2025.
According to the financial report, sales in the quarter were 29.597 billion yen, down 32.5% from the same period last year; Operating profit was 12.889 billion yen, down 46.4% from the same period last year; Net profit for the quarter was 9,975 million yen, down 45.1% from the same period last year.
Capcom explained that during the three-month period from April to June 2024, the revenue of the company's core business, digital content (i.e., games), relied on the revenue generated by the login of existing games (old games) on new platforms and the continued sales of blockbuster titles released in the previous fiscal year, because many of the company's new game release windows were concentrated in the second half of the fiscal year.
As a result, Capcom sold 9.53 million games in the quarter, and Capcom said that "while down from the same period of the previous fiscal year when Street Fighter 6 was released, solid progress was made towards achieving full-year targets and was in line with the plan." ”
Capcom's last blockbuster release was Dragon Dogma 2, which sold more than 3 million units since its release in March and was the company's first $70 game.
Capcom's Zombies Siege: Deluxe Remastered will launch in September, while Monster Hunter: Wildlands is set for 2025.