Japan’s Konami Group is expected to continue generating healthy cash flow in the immediate future thanks to the post-COVID recovery of all business units – including Gaming & Systems – according to Japan Credit Rating Agency Ltd (JCR).
The update formed part of a Friday note from the ratings agency in which it affirmed Konami’s Long-term Issuer Rating at A+ with a Stable outlook. The gaming giant has, it explained, regained its earnings power across all business units post-COVID.
Konami operates four core business units, with Digital Entertainment – comprising the same of mobile games, console video games and card games – by far the largest, accounting for almost 70% of group-wide revenues in the nine months to 31 December 2024.
Its Gaming & Systems segment includes the manufacture and sale of slot machines and industry-leading casino management systems, the Amusement segment comprises the manufacture and sales of arcade games and pachinko/pachislot machines while Sports provides for the operation of sports clubs and public facilities.
In affirming Konami’s A+ rating, JCR said the company is a leader in each business field and has diverse sources of revenue.
“The company’s performance is strong, centered on its mainstay Digital Entertainment business,” it explained. “Given that the three businesses other than the Digital Entertainment business have also regained their pre-COVID-19 earnings power, JCR believes that the Group as a whole will continue to be able to generate a high level of cash flow. There are also no changes to the strong financial base. Based on the above, JCR has affirmed the rating with Stable outlook. The company’s ratings reflect the Group’s overall creditworthiness.”
Konami is due to report its financial results for the year ended 31 March 2025 on 8 May, with the most recent forecast suggesting it will achieve record-high operating of around JPY 100 billion (US$703 million) – up 24.6% year-on-year.
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