Capcom Raises Earnings Forecast Following Dragon’s Dogma 2 Boost
Capcom has released a new earnings forecast revealing that Dragon's Dogma 2 and Street Fighter 6 boosted expectations.
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Capcom Announces Revision of Full-Year Consolidated Earnings Forecast, Variances Between its Non-Consolidated Estimated Earnings and the Previous Fiscal Year’s Actual Results, and a Dividend Forecast Revision (Upward) | Press Release | CAPCOM
Based on recent operational results, Capcom Co., Ltd. (Capcom) has revised the full-year consolidated earnings forecast for the year ended March 31, 2024 (April 1, 2023 – March 31, 2024) that was announced on May 10, 2023. Further, while the company’s non-consolidated earnings forecast is not...
www.capcom.co.jp
1. Regarding revisions to the consolidated earnings forecast
i. Revisions to the consolidated earnings forecast for the fiscal year ended March 31, 2024
(April 1, 2023 to March 31, 2024)
(million yen)Scroll horizontally to view
| Net sales | Operating income | Ordinary income | Net income attributable to owners of the parent | Earnings per share (yen) | |
|---|---|---|---|---|---|
| Previous forecast (A) | 140,000 | 56,000 | 56,000 | 40,000 | 95.64 |
| Revised forecast (B) | 152,400 | 57,000 | 59,400 | 43,300 | 103.53 |
| Variance (B) – (A) | 12,400 | 1,000 | 3,400 | 3,400 | – |
| Variance (%) | 8.9 | 1.8 | 6.1 | 8.3 | – |
| (Reference) Previous year’s results (FY ended Mar. 31, 2023) | 125,930 | 50,812 | 51,369 | 36,737 | 87.36 |
ii. Reason for the revision
In our core Digital Contents business, in addition to Street Fighter 6, the latest title in the Street Fighter series, being met with broad acclaim globally, Dragons Dogma 2 was released in the fourth quarter and has performed favorably. Further, sales grew for catalog titles consisting primarily of past titles from major series due to their steady popularity. Altogether, this has led us to expect earnings for this business to exceed our plan.As a result, we expect net sales, operating income, ordinary income, and net income attributable to owners of the parent to all outperform our previously announced forecast.
CAPCOM RAISES EARNINGS FORECAST FOLLOWING DRAGON’S DOGMA 2 BOOST
In a new press release today, Capcom revised a full-year consolidated earnings forecast after the combined boost of Dragon’s Dogma 2 and Street Fighter 6.
Capcom’s new forecast for the year ending March 31st, 2024, increases the net income from 40 to 43.3 million yen. For the same fiscal year, Capcom says that “the full-year dividend forecast is ¥70 per share.”
The forecast does mention growing profits from catalog titles. But it notably adds that Dragon’s Dogma 2 “has performed favorably.”
Street Fighter 6 earned solid critic reviews and average user reviews on Metacritic. However, Dragon’s Dogma 2 had a very rough launch, facing widespread backlash over microtransactions.
Still, the game pulled through, ultimately selling 2.2 million units by the first week of April 2024. So, despite its divisive features, Capcom has confirmed again that Dragon’s Dogma 2 is selling effectively enough.
It’s unclear if this success will invite Capcom to continue similar launches in the Dragon’s Dogma series, or even for other titles.
More information about the revised earnings forecast might come up at the 45th Ordinary General Meeting of Shareholders. Today’s press release confirms the event is scheduled for June 2024.
Last month, Capcom also announced that it would increase the starting salary for new graduate hires beginning in Fiscal Year 2025. Both current employees and new hires in fiscal year 2024 can also expect one special payment. So, Capcom’s optimism seems well-founded, as the company also has room to invest in new employees.
