Ellie Gibson
15:27 (BST)
08/11/2005
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Konami to restructure following revenue dip
Japanese giant to merge gaming divisions into single subsidiary
Konami has published six month earnings figures which reveal a 2 per cent drop in revenues and announced plans to restructure operations at the end of the financial year.
For the half-year ending September 30, Konami posted revenues of 11.87 billion Yen (USD 951 million). The figure for the same period last year stood at 114.01 billion yen (USD 970 million).
Konami is confident that its fortunes will improve as the year progresses, however, forecasting year-end revenues of 270 billion yen (USD 2.3 billion) - a 4 per cent increase on last year's figure. Titles such as Winning Eleven, Pro Evolution Soccer, Suikoden V, along with PSP and PS2 instalments in the Metal Gear Solid series, are expected to boost profits.
Konami also announced restructuring plans which will see its Japanese gaming divisions merging with foreign operations to become a single subsidiary. Konami has already begun the restructuring process by dividing operations into three segments, under the headings Health & Fitness, Gaming & System and Digital Entertainment. The latter incorporates Computer & Videogames, Toy & Hobby, Amusement, Online and Multimedia operations.
Konami said the restructuring programme is designed to create more management transparency and efficiency, and to improve profits by making it easier to ascertain the performance of each division. Konami will continue to be listed on the stock market.
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