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Konami profits fall by 40%

Drop comes despite sales increase for Metal Gear Solid and Pro Evo Soccer publisher

Konami has reported its financial results for the year ending March 31, 2009, noting that sales were up 4.2 per cent to JPY 310 billion (USD 3.26 billion), but profits fell by almost 41 per cent to JPY 10.9 billion (USD 114.5 million).

Sales in the videogames section of the business were strong on the back of the release last year of Metal Gear Solid 4 and Pro Evolution Soccer 2009, with headline revenues totalling JPY 187.6 billion (USD 1.97 billion) - up 4.9 per cent on the previous year and representing the strongest growth across the corporation.

The company cited "business structure improvements" costing JPY 11.1 billion (USD 116.6 million) as the main reason for the lower net income levels, while in the year ahead it will look to continued success in the Pro Evo Soccer and Dance Dance Revolution franchises across multiple platforms.

"Despite tough economical times, these figures show another tremendous year for Konami," said Kunio Neo, president for Konami Digital Entertainment GmbH. "We are delighted that the European figures have contributed greatly to the company's global profit, and look forward to another strong twelve months ahead."

The publisher made the most money in its home territory of Japan, with top line revenues there of JPY 224 billion (USD 2.35 billion), compared to JPY 44 billion (USD 462 million) in the US and JPY 37 billion (USD 389 million) in Europe.

The company's stock closed up 0.4 per cent at JPY 1635 (USD 17.16) at the end of trading on the Tokyo Stock Exchange today.