Capcom’s Q1 net income up 290% Y-over-Y to $16.6M

By Kathleen De Vere Comment

Capcom’s 2012/2013 fiscal year is off to a booming start, with the company reporting net sales of 18.6 billion yen ($238 million), up 55.8 percent year-over-year, and a net income of 1.3 billion yen ($16.6 million), an increase of 290.2 percent year-on-year.

The company highlighted the strength of its digital content division, which saw net sales increase 78.8 percent year-over-year to 13.7 billion yen ($175.3 million) and operating income of rise 175.6 percent year-over-year to 2.4 billion yen ($30.7 million).

Capcom’s mobile and social games contributed heavily to its earnings, with the Mobage title Minna to Monhan Card Master and the GREE title Resident Evil: Outbreak Survive both maintaining steady sales. Four of Capcom’s Japanese mobile social games have now surpassed 4.9 million users.

The company’s Beeline brand also continued to do well, having now passed 65 million downloads, up from the 56 million downloads Capcom reported in Q4 2011. The unit has been extremely successful turning well-known brands into some of the most popular (and profitable) titles on iOS and Android — particularly its flagship title Smurfs Village, which still accounts for most of Beeline’s 65 million downloads. Capcom reports both Smurfs Village and Snoopy’s Street Fair have brought the company steady fees.

Capcom’s mobile content sales hit 2.9 billion yen ($37.1 million) during Q1, an increase of 141.6 percent over Q1 2011’s 1.2 billion yen in sales. Overall, Capcom is predicting mobile content sales to hit 12.0 billion yen ($153.5 million) for its 2012/2013 fiscal year.

The company is forecasting a record high fiscal year target, with net sales of 105 billion yen ($1.34 billion) for the fiscal year, with net income of 9.8 billion yen ($125.4 million). Capcom finished its previous 2011/2012 fiscal year with 82 billion yen ($1.04 billion) in sales and 6.7 billion yen ($85.7 million) in net income.