Business Performance (Japan GAAP)

Here we breakdown our consolidated business results for the fiscal year ended March 31, 2025 with graphs and diagrams.

In the fiscal year ended March 31, 2025, Capcom Co., Ltd. (the "Company") actively pursued investments for growth focused on the ongoing enhancement of digital sales in order to further evolve and expand within the global market. Moreover, the Company made further efforts in its human resources investment strategy, which is one of its top priorities, with the aim of stable and sustainable growth. In line with these kinds of management strategies, the Company worked to enhance corporate value over the medium to long term by continuing to strengthen its development and technological capabilities; this included acquiring a 3D computer graphics production company with prowess in the creation of animation in consumer game development as a subsidiary.

Regarding business performance, the Company made efforts to increase global sales in its core Digital Contents business by launching Monster Hunter Wilds, a major new title in its flagship series, while pursuing catalog sales of major titles released in the previous fiscal years. These efforts brought sales volumes in the Digital Contents business in the fiscal year under review to 51.87 million units, exceeding the previous fiscal year’s figure of 45.89 million units. In addition, with the Company’s efforts to promote its digital sales strategies, sales volumes of catalog titles were 39.49 million units, up from 36.29 million units in the previous fiscal year. As a result, the Company sold 248 titles in 227 countries and regions, contributing to enhancing the value of its brands.

The Company also aimed to enhance the brand value of its intellectual properties (IPs) by coordinating the activities of its major content with film and television productions, licensed merchandise, and esports. It also worked to increase earnings: in Arcade Operations this was through the steady operation of amusement arcades and the promotion of store openings in new store formats; in Amusement Equipments, the Company continued to release smart pachislo machines and utilize its popular IPs.

As a result, net sales for the fiscal year under review were 169,604 million yen (up 11.3% year on year), operating income was 65,777 million yen (up 15.2% year on year), ordinary income was 65,635 million yen (up 10.5% year on year), and net income attributable to owners of parent was 48,453 million yen (up 11.7% year on year). This was the Company’s twelfth consecutive year of increased operating income.

In the Digital Contents business, the Company released Monster Hunter Wilds (for PlayStation 5, Xbox Series X|S, and PC), the latest title in the series, in February 2025. As a result of both satisfying the strong expectations of fans and successful measures to build awareness through various events and other activities, worldwide sales surpassed 10 million units, which contributed to earnings.

Regarding catalog titles, anticipation for Monster Hunter Wilds provided momentum for ongoing growth in the sales of Monster Hunter World: Iceborne and Monster Hunter Rise; as a result, cumulative sales of the series overall surpassed 100 million units worldwide, helping to enhance the brand value of Monster Hunter. In addition, the Company conducted proactive promotional campaigns to build wider awareness of its IPs and acquire new fans, focusing primarily on the sales of series titles, such as Resident Evil 4. Furthermore, the Company continued to strengthen coordination between its games and esports activities to pursue wider brand recognition and an expanded user base for Street Fighter 6, the major new title in its flagship series released in the previous fiscal year.

In Mobile Contents, Monster Hunter Now, which was released in the previous fiscal year, continued to gain in popularity among a wide base of users, as cumulative downloads exceeded 15 million, contributing to greater penetration and increased value for the Monster Hunter brand. In addition, the Company released Monster Hunter Puzzles: Felyne Isles (for iOS and Android) globally in June 2024, which has achieved over 1 million downloads.

As a result, the segment earned net sales of 125,128 million yen (up 4.4% year on year), and operating income of 65,172 million yen (up 8.9% year on year).

In Arcade Operations, in addition to trends in inbound tourism and post-COVID-19 out-of-home spending, consumer lifestyle habits are undergoing change. As such, factors such as steady operations at existing stores and store openings in new formats led to an increase in the number of visitors, which contributed to earnings expansion. Moreover, the Company worked to maximize the appeal of its brick-and-mortar stores and create synergies with other businesses by holding live events and other activities.

During the fiscal year under review, the Company opened Plaza Capcom Oyabe (Toyama Prefecture) in April 2024, and a new area at Plaza Capcom Ikebukuro (Tokyo) in May 2024. Additionally, the Company opened Capcom Store Annex Marine Pia Kobe (Hyogo Prefecture), a retail store that sells merchandise featuring the Company’s popular characters, in November 2024, as well as Capsule Lab Kobe Nankin-machi (Hyogo Prefecture), a capsule toy specialty store, in February 2025. Altogether, the Company opened 5 stores while closing 1 store, bringing the total number of stores to 53.

As a result, the segment earned net sales of 22,750 million yen (up 17.6% year on year), and operating income of 2,432 million yen (up 30.2% year on year).

In Amusement Equipments, the pachislo market remained solid, driven by customer demand for smart pachislo machines. Street Fighter V Chosensha no Michi, released in June 2024, sold 5 thousand units, while Onimusha 3, released in October 2024, sold 11 thousand units. Further, Monster Hunter Rise, released in November 2024, garnered acclaim from the market, leading to sales of 21 thousand units. Moreover, Resident Evil 5, released in March 2025, sold 12 thousand units, demonstrating the contribution of new models to earnings. Sales of Strike the Blood, which was released in March 2024, also grew.

As a result, the segment earned net sales of 15,613 million yen (up 73.1% year on year), and operating income of 6,701 million yen (up 62.8% year on year).

In Other Businesses, beginning in April 2024, the Company bolstered its structure by integrating internal organizations to facilitate collaboration with its eSports and Character businesses, with the aim of improving the brand value of its titles.

With this structure in place, the Company utilized its popular title Street Fighter 6 and began the global Capcom Pro Tour 2024 in June, while also holding the team-league Street Fighter League: Pro-JP 2024 in Japan from August, followed by league contests in the United States and Europe, leading to heated battles unfolding across these various competitions. In addition, the Company held championship tournaments, Capcom Cup 11 and Street Fighter League: World Championship 2024, at Japan’s famous National Sumo Arena, Ryogoku Kokugikan, in March 2025. The two events were a great success, drawing much attention for being the first time they were held in Japan, and attracting a total of 14,000 visitors and recording more than 10 million views online. Through such measures, the Company has aimed to further promote esports on a global scale.

Additionally, Mega Man: Start, part of the Amazon Prime Video animated series Secret Level, was made available for streaming worldwide in December 2024. The Company also focused on promoting various events and collaborations in conjunction with the 20th anniversary of the Monster Hunter series, as well as developing character merchandise for its popular titles, which progressed favorably. Other measures the Company has taken to enhance corporate value include opening Capcom Creation: Moving Hearts Across the Globe, an exhibition that began running in March 2025 and that showcases the Company’s game development process, etc.

As a result, the segment earned net sales of 6,111 million yen (up 45.4% year on year), and operating income of 2,484 million yen (up 181.2% year on year).

Total assets as of the end of the fiscal year ended March 31, 2025, increased by 69,505 million yen from the end of the previous fiscal year to 312,982 million yen. The primary increases were 41,592 million yen in cash on hand and in banks, 10,174 million yen in work in progress for game software, as well as 7,957 million yen in accounts receivable – trade.

Total liabilities as of the end of the fiscal year ended March 31, 2025, increased by 38,283 million yen from the end of the previous fiscal year to 86,678 million yen. The primary increases were 19,907 million yen in deferred revenue, 9,599 million yen in accrued income taxes, etc., as well as 1,095 million yen in provision for share awards.

Net assets as of the end of the fiscal year ended March 31, 2025, increased by 31,221 million yen from the end of the previous fiscal year to 226,303 million yen. The primary increases were 48,453 million yen in net income attributable to owners of the parent. The primary decreases were 16,835 million yen in dividends from retained earnings, and 594 million yen in cumulative translation adjustments.

Cash and cash equivalents as of the end of the fiscal year ended March 31, 2025, increased by 41,334 million yen from the end of the previous fiscal year to 150,426 million yen.

Cash flow positions of each activity and their factors are described below.

(Cash flows from operating activities)
Net cash gained from operating activities was 67,618 million yen (a 36,921-million-yen net cash gain in the previous fiscal year).
This was primarily due to funds increasing due to 65,651 million yen in net income before income taxes, and a 19,932 million-yen increase in deferred revenue etc., and funds decreasing due to a 10,169 million-yen increase in work in progress for game software, and 8,578 million yen in accrued income taxes, etc.

(Cash flows from investing activities)
Net cash used in investing activities was 7,273 million yen (5,962 million yen in the previous fiscal year).
This was primarily due to funds increasing due to 32,107 million yen in proceeds from withdrawal of time deposits, etc., and funds decreasing due to 32,258 million yen in payments into time deposits, and 5,846 million yen in payments for acquisitions of tangible fixed assets, etc.

(Cash flows from financing activities)
Net cash used in financing activities was 18,735 million yen (15,969 million yen in the previous fiscal year).
This was primarily due to funds decreasing due to 16,823 million yen in dividends paid by parent company, and 1,222 million yen in repayments of lease obligations, etc.