Falcom reports lower profits, sharp uptick in digital; new Kiseki in summer ’13?

Falcom has reported results for the 10/2011-9/2012 fiscal year, with a 32% drop in net profit to ¥216m on sales of ¥1.27b (itself an 19% decrease). While sales in the retail games division declined 32% to ¥991m, sales of major titles Nayuta no Kiseki and Ys: Celceta were satisfactory, and management believes that the long-term decline in retail has now bottomed out.

Sales in the licensing division, covering platform revenues and digital distribution, increased sharply; the company reports a 3.5% increase in gross margin ratio attributable to cost savings vs. retail on a 73% sales increase to ¥280m.

Next year’s net profits are expected to increase 38% to ¥300m on a 34% increase in sales to ¥1.7b; forecast sales for the first half running through March 31st are only ¥161m, a clear indicator that the new Kiseki title planned for next year will ship in April or later.


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