August 5, 2014

KONAMI CORPORATION

KONAMI CORPORATION hereby announces that our consolidated net revenues and operating income for the first quarter ended June 30, 2014 were ¥48,606 million (106.6% of the same period in the previous year) and ¥3,191 million (213.5% of the same period in the previous year), respectively.

Income before income taxes and net income attributable to KONAMI CORPORATION were ¥2,624 million (122.4% of the same period in the previous year) and ¥1,361 million (145.6% of the same period in the previous year), respectively.

In Digital Entertainment business, steady sales of mobile games including DRAGON COLLECTION and World Soccer Collection series continued throughout the quarter with solid growth in the number of native app downloads, which resulted in an increase in revenues and operating income compared to the previous quarter.

In Health & Fitness business, we further developed the new pricing and membership plans we introduced in the prior fiscal year. These plans enable customers to select a pricing plan based on the number of times they use our facilities. We also made it easier for customers to use more than one facility. We intend to promote and spread services supporting the concept "Sustainable fitness."

In Gaming & Systems business, sales of products such as the "Podium" video slot machine and "Advantage" mechanical slot machine series continued steadily , mainly in the U.S. market, which led to the highest revenues and operating income ever recorded for the first quarter of any past year.

In Pachinko & Pachinko Slot Machines business, we released a new pachinko slot machine, "MAH-JONG FIGHT CLUB," which has continued to perform steadily in the market.

1. Consolidated Results of Operation (Millions of yen)
Net Revenues Operating Income Income Before Income Taxes Net income attributable to KONAMI CORPORATION
Three Months ended June 30, 2014 48,606 3,191 2,624 1,361
Three Months ended June 30, 2013 45,589 1,495 2,143 934
2.Segment Information - Net Revenues (Millions of yen)
Three Months ended June 30, 2013 Three Months ended June 30, 2014 % of previous year
Digital Entertainment 20,005 20,420 102.1
Health & Fitness 18,952 18,042 95.2
Gaming & Systems 6,094 6,817 111.9
Pachinko & Pachinko Slot Machines 693 3,474 500.5
Eliminations -155 -147 -
Consolidated 45,589 48,606 106.6
3.Segment Information - Operating Income (Millions of yen)
Three Months ended June 30, 2013 Three Months ended June 30, 2014 % of previous year
Digital Entertainment 1,677 3,373 201.1
Health & Fitness 336 -75 -
Gaming & Systems 1,217 1,275 104.8
Pachinko & Pachinko Slot Machines -486 -427 -
Corporate and Eliminations -1,249 -955 -
Consolidated 1,495 3,191 213.5
4.Overview of the First Quarter ended June 30, 2014 Digital Entertainment Business
  1. (1) Domestic launch of "WORLD SOCCER Winning Eleven 2014: Aoki Samurai no Chousen" and strong repeat sales of "METAL GEAR SOLID V: GROUND ZEROES"
  2. (2) Sales of mobile games driven by titles including DRAGON COLLECTION and World Soccer Collection series with solid growth in the number of native app downloads
  3. (3) Stable recurring revenues from "e-AMUSEMENT Participation" arcade games
  4. (4) Launched new Yu-Gi-Oh! TRADING CARD GAME series to go along with the new TV cartoon show
Health & Fitness Business
  1. (1) Focused on promoting the Konami Sports Club brand through TV commercials, etc.
  2. (2) Added 32 new contract-based clubs
Gaming & Systems Business
  1. (1) Maintained solid sales of the "Podium" video slot machine and "Advantage" mechanical slot machine series
  2. (2) Unveiled "Dungeons & Dragons," a slot machine based on the world-famous fantasy-themed role-playing game
  3. (3) Casino management system "SYNKROS" well-reputed among casino operators
Pachinko & Pachinko Slot Machines
  1. (1) Released pachinko slot titles "Kenka Matsuri" and "MAH-JONG FIGHT CLUB"
  2. (2) Launched the Konami Group's first ever pachinko machine title "CR PACHINKO MAGICAL HALLOWEEN"

*Statements made in this news release reflect information available on the date of its announcement, and is subject to change without prior notice.


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