Konami reported a 3% YoY drop in gaming & systems revenue, totaling $122M for the six months ending September 2024, due to declines in casino gaming machines.
Konami Holdings Corp., the Tokyo-based gaming and entertainment conglomerate, reported a 3% year-on-year decline in its gaming and systems segment revenue for the six months ending in September 2024. The division, which focuses on casino gaming machines and casino management systems, recorded revenue of $122 million for the period.
The slight dip in revenue highlights ongoing challenges faced by Konami’s gaming division, which services global casino operators and is a key segment for the company’s North American business.
According to the firm’s half-year financial report, the decline comes amid heightened competition and shifting trends in the casino gaming market. In its report, Konami acknowledged that demand within the global gaming market has experienced uneven recovery patterns since the COVID-19 pandemic,
especially within North America, a core market for the company. While Konami’s gaming products have maintained a strong presence in the industry, growth has been tempered by rising operational costs and a slowdown in capital expenditure among casino operators.
Despite this, Konami emphasized that it remains committed to innovation and expanding its reach in the gaming and systems sector.
The company’s gaming and systems segment provides a wide range of casino products, including slot machines and casino management systems used to streamline and enhance the casino guest experience. This sector is crucial to Konami’s broader strategy, especially in North America, where it faces major competitors like Aristocrat Leisure, IGT, and Scientific Games.
Looking ahead, Konami indicated it would focus on developing new gaming products and enhancing its systems technology to capture a larger share of the market and adapt to evolving consumer preferences. The company reaffirmed its commitment to maintaining high standards in product innovation and customer satisfaction to reinforce its position within the competitive gaming industry.
Konami’s casino gaming and systems division has shown a moderate revenue trend over recent years, with fluctuations based on industry dynamics and market conditions. In the fiscal year ending March 2023, the segment saw a notable increase, with revenue reaching around $257 million, up about 3% year-on-year. This growth was supported by the popularity of its DIMENSION slot cabinet series and the expansion of its Synkros casino management system, especially in North America and Australia, where investments in casino technologies remained robust.
For the first half of fiscal year 2024, revenue from this segment reached $122 million, a slight decline of around 3% compared to the same period the previous year. However, Konami remains optimistic for the full fiscal year, forecasting growth in line with the continued expansion of Synkros installations and the anticipated success of new slot cabinet designs. The company is targeting a revenue of roughly $270 million for fiscal year 2024, reflecting expectations of a 20% profit increase from the previous year.
Konami has focused on strengthening its market position with innovative cabinets and is actively responding to changing market demands with new game titles and upgraded technology in its offerings.
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