Capcom Co Ltd (CCOEF) (Q1 2026) Earnings Call Highlights: Record-Breaking Quarter with 90. ...

Q: Could you provide an overview of Capcom's financial results for the first quarter of the fiscal year ending March 2026? A: Representative Director, President, COO, CHO, and CFO, Haruhiro Tsujimoto, reported that net sales were 45.52 billion yen, up 53.7% year-on-year. Operating income rose 90.8% to 24.597 billion yen, ordinary income increased 69.7% to 22.883 billion yen, and net income attributable to owners of the parent grew 72.8% to 17.238 billion yen. He noted this was a very strong first quarter, driven by growth in both the Digital Contents and Amusement Equipment businesses.

Q: What were the key drivers behind the significant increase in unit sales for the Digital Contents segment? A: President Tsujimoto explained that unit sales for the first quarter reached 14.16 million units, a massive increase from 9.53 million units in the same period last year. This was driven by strong sales of new titles like "Capcom Fighting Collection 2" and "Onimusha 2: Samurai's Destiny," as well as continued growth from catalog titles. He also highlighted that the release of "Devil May Cry" on Netflix in April helped boost sales of the game series, contributing to the segment's performance.

Q: Can you elaborate on the performance of the Amusement Equipment Business, particularly the new store openings? A: President Tsujimoto stated that net sales for the Amusement Equipment Business increased 107.4% year-on-year to 5.66 billion yen, with operating income of 941 million yen. The company opened three new stores in the first quarter, bringing the total to 56 stores. He attributed the growth to the diversification of the business, including the sale of prizes and the expansion of the store network, which has led to increased customer traffic and revenue.

Q: What is the status of Capcom's balance sheet, particularly regarding cash and deposits? A: CFO Tsujimoto reported that total assets decreased by approximately 19.7 billion yen from the end of the previous fiscal year to 293.241 billion yen. Net assets increased by about 7.2 billion yen to 233.579 billion yen, resulting in a self-capital ratio of 79.6%. He noted that the decrease in cash and deposits was mainly due to the sale of investment securities, including the sale of cross-shareholdings, and the purchase of treasury stock.

Q: How did the Pachinko and Pachislot business perform in the first quarter? A: President Tsujimoto explained that the Pachinko and Pachislot business saw net sales of 7.812 billion yen, up 56% year-on-year, with operating income of 4.91 billion yen, a significant increase from 3.8 billion yen last year. This growth was driven by the strong performance of the new title "Biohazard 5" and the continued popularity of "Street Fighter 6," which contributed to the segment's overall success.

Q: What are the main factors behind the increase in operating income for the Digital Contents segment? A: President Tsujimoto highlighted that the Digital Contents segment's operating income was 20.057 billion yen, up approximately 56% year-on-year. This was primarily due to the higher sales volume of new titles and catalog titles, as well as the favorable impact of the weak yen. He also mentioned that the segment benefited from the release of "Monster Hunter Bridge" at Universal Studios Japan, which helped raise brand awareness.

Q: Can you provide details on the company's share buyback and dividend policy? A: CFO Tsujimoto stated that the company repurchased approximately 8 million shares of its own stock during the first quarter, amounting to about 31.6 billion yen. This was part of the company's ongoing efforts to enhance shareholder returns. He also mentioned that the dividend forecast remains unchanged from the previous announcement, with a planned annual dividend of 50 yen per share.

Q: What is the outlook for the full fiscal year, and are there any changes to the earnings forecast? A: President Tsujimoto confirmed that there are no changes to the full-year earnings forecast for the fiscal year ending March 2026. The company expects to achieve its targets, including net sales of 190 billion yen and operating income of 65 billion yen, driven by the strong performance in the first quarter and the planned release of major titles in the second half of the year.

Q: How does Capcom plan to continue growing its Digital Contents business in the coming quarters? A: President Tsujimoto outlined that the company will continue to focus on expanding its catalog titles, which have shown strong repeat sales, and will release new titles such as "Monster Hunter Wilds" in the second half of the fiscal year. He also emphasized the importance of leveraging IP across multiple media, including games, films, and merchandise, to drive further growth.

Q: What was the impact of the sale of cross-shareholdings on the company's financial results? A: CFO Tsujimoto explained that the sale of cross-shareholdings, which was part of the company's policy to reduce strategic holdings, resulted in a gain that contributed to the increase in ordinary income. He noted that the sale of investment securities led to a decrease in cash and deposits, but it also improved the company's asset efficiency and financial flexibility.

Q: Can you discuss the performance of the Arcade Operations business and its future prospects? A: President Tsujimoto reported that the Arcade Operations business saw net sales of 5.66 billion yen, up 107.4% year-on-year, with operating income of 941 million yen. He attributed the growth to the opening of new stores and the introduction of new attractions, such as the "Monster Hunter Bridge" at Universal Studios Japan. He expects the business to continue growing as the company expands its store network and enhances customer experience.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .