The Gaming and Systems segment of Japan’s Konami Holdings Corp fell to a loss of JPY1.24 billion (US$11.9 million) in the six months to 30 September 2020, down from a profit of JPY1.65 billion (US$15.8 million) over the same period in 2019 on global casino closures during COVID-19.
Segment revenue in the first half of Konami’s financial year fell 51.9% to JPY7.15 billion (US$68.6 million), which the company attributed to the suspension of “virtually all of its operations” within the gaming business due to casino facilities closing globally.
1H21 revenue included revenue from the sale of slot machines as well as revenue from profit share agreements with operators, with Konami having introduced its SYNKROS casino management system to major operators in the North American and Australian markets and executed new contracts.
However, the company refrained from offering any full year forecasts given ongoing uncertainty around COVID-19.
“Although business gradually resumed from the end of May, it will take time for the market to fully recover under this severe business environment due to certain business restrictions and continued travel restrictions,” it said.
Group-wide, Konami reported mixed results with the Amusement and Sports segments also suffering declines but its main Digital Entertainment segment reporting a 31.8% increase in revenue to JPY88.27 billion (US$846.6 million).
Konami’s total revenue for the six month period fell 4.1% year-on-year to JPY116.07 billion (US$1.11 billion) and profit attributable to owners of the parent by 9.3% to JPY13.79 billion (US$132.3 million).