Revision Consolidated/Dividend Forecast 03.2027

Konami sharply raised its FY2027 earnings and dividend forecasts on strong digital game sales.

What the company is saying

Konami Group Corporation has revised its consolidated earnings and dividend forecasts for the fiscal year ending March 31, 2027, citing business performance ahead of initial expectations. The company now projects revenue of 583,000 million yen, business profit of 200,000 million yen, operating profit of 193,000 million yen, and profit attributable to owners of the parent of 135,000 million yen, all significantly above both the previous forecast and FY2026 actuals. The announcement attributes this outperformance to strong results in core Digital Entertainment titles, specifically eFootball™ and Yu-Gi-Oh!, although no segment-level figures are provided. The dividend forecast is also raised to an annual total of 299.00 yen per share, up 75.00 yen from the prior forecast, with a revised year-end dividend of 187.00 yen per share. The company reiterates its policy of targeting a consolidated payout ratio above 30%. The tone is confident and data-driven, with clear period comparisons and quantified changes. Kimihiko Higashio (President and CEO) and Junichi Motobayashi (Executive Officer, Finance) are named as responsible executives.

What the data suggests

The revised forecast represents a 15.4% increase in revenue and a 33.7% increase in profit attributable to owners of the parent compared to the previous forecast, with revenue now expected at 583,000 million yen and profit at 135,000 million yen. Business profit and operating profit are both raised by 50,000 million yen to 200,000 million yen and 193,000 million yen, respectively, each up over 33% from prior guidance. Basic earnings per share is now forecast at 995.90 yen, up from 745.08 yen previously. Actual FY2026 results were 493,677 million yen in revenue and 100,013 million yen in profit attributable to owners, so the new forecast implies substantial year-on-year growth. The dividend increase to 299.00 yen per share (from 221.50 yen actual in FY2026 and 224.00 yen in the previous forecast) is immediate for the current fiscal year. The company’s explanation for the upward revision is strong performance in its digital games, but without segment or product-level financials, the exact contribution from eFootball™ and Yu-Gi-Oh! cannot be independently verified. Overall, the numbers show a clear and material improvement in both operational and shareholder returns.

Analysis

The announcement is a revision of full-year forecasts for the fiscal year ending March 31, 2027, which is approximately five months away from the current date. The tone is positive, reflecting significant upward revisions to revenue, profit, and dividend forecasts, all of which are supported by detailed numerical disclosures. The majority of key claims are forward-looking (projections for FY2027), but these are grounded in actual performance trends for the six months ended September 30, 2026, and are compared against both previous forecasts and FY2026 actuals. There is no evidence of exaggerated or promotional language; the narrative is proportionate to the disclosed figures. No large capital outlay or long-dated, uncertain returns are mentioned, and the dividend increase is immediate for the current fiscal year. The only minor gap is the qualitative attribution of outperformance to specific titles without segment-level numbers, but this does not constitute hype.

Risk flags

• ●The upward revision is based on recent strong performance in core digital titles, but no detailed segment or product-level breakdown is provided. If momentum in these titles slows or competitive dynamics shift, actual results may fall short of the new forecasts.
• ●Currency fluctuations, particularly involving the Japanese yen, U.S. dollar, and Euro, are cited by management as a risk factor that could materially affect reported results, given the company’s international operations.
• ●The announcement references a policy of targeting a payout ratio above 30%, but actual dividend payments remain subject to final year-end results and board approval, introducing some execution risk.
• ●The company’s growth strategy includes potential further acquisitions and integration of new businesses, which can introduce operational and financial integration risks if not managed effectively.

Bottom line

Konami’s sharp upward revision to its FY2027 earnings and dividend forecasts signals strong recent momentum in its digital entertainment business, with headline numbers now well above both prior guidance and last year’s results. The immediate increase in the annual dividend to 299.00 yen per share is a tangible benefit for shareholders and reflects management’s confidence in near-term performance. While the narrative credits eFootball™ and Yu-Gi-Oh! for the outperformance, the lack of segment-level financial detail leaves some uncertainty about the sustainability and breadth of the growth. Execution risks remain around currency volatility and the integration of potential acquisitions, but the overall financial trajectory is positive and the disclosures are comprehensive for headline metrics. The most important takeaway is that Konami expects to deliver materially higher profits and dividends in the current fiscal year, with the next key data point being actual results as the fiscal year closes.

Announcement summary

(LSE:KNM) Konami Group Corporation announced a revision of its consolidated earnings forecast and dividend forecast for the fiscal year ending March 31, 2027. The revised consolidated earnings forecast for FY2027 projects revenue of 583,000 million yen, business profit of 200,000 million yen, operating profit of 193,000 million yen, profit before income taxes of 193,000 million yen, profit attributable to owners of the parent of 135,000 million yen, and basic earnings per share of 995.90 yen. This represents an increase from the previous forecast of 505,000 million yen in revenue, 150,000 million yen in business profit, 143,000 million yen in operating profit, 143,000 million yen in profit before income taxes, 101,000 million yen in profit attributable to owners of the parent, and 745.08 yen in basic earnings per share. The changes amount to increases of 78,000 million yen in revenue, 50,000 million yen in business profit, 50,000 million yen in operating profit, 50,000 million yen in profit before income taxes, 34,000 million yen in profit attributable to owners of the parent, and 250.82 yen in basic earnings per share. The percentage increases are 15.4% for revenue, 33.3% for business profit, 35.0% for operating profit, 35.0% for profit before income taxes, and 33.7% for profit attributable to owners of the parent. For the year ended March 31, 2026, actual results were revenue of 493,677 million yen, business profit of 143,583 million yen, operating profit of 135,891 million yen, profit before income taxes of 140,667 million yen, profit attributable to owners of the parent of 100,013 million yen, and basic earnings per share of 737.80 yen. The revision is attributed to strong performance in core titles in the Digital Entertainment business, including eFootball™ and Yu-Gi-Oh!, and business performance trends ahead of the initial forecast for the six months ended September 30, 2026. The company also revised its dividend forecast for FY2027, increasing the annual dividend per share to 299.00 yen, with a second quarter end dividend of 112.00 yen and a revised year-end dividend of 187.00 yen. This is an increase of 75.00 yen per share compared to the previous forecast of 224.00 yen annual dividend. For the year ended March 31, 2026, actual dividends were 83.00 yen at the second quarter end, 138.50 yen at year end, and 221.50 yen annual total. The company maintains a basic policy to emphasize payment of dividends as a target for more than 30% in the consolidated payout ratio. Kimihiko Higashio is the Representative Director, President and Group CEO. Junichi Motobayashi is Executive Officer, General Manager, Finance Division.

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