Japan Credit Rating Agency Ltd has affirmed a Long-term Issuer Rating of A+ with a Stable outlook for Japanese gaming giant Konami Group Corporation, pointing to diverse earnings sources and “overall creditworthiness” of the group.
In a Thursday update, the ratings agency said Konami’s strength lies in the positioning of each of its business sectors, which including the manufacturing and sale of gaming machines and systems for casino facilities as well as Digital Entertainment in the form of mobile and console games, the manufacture of pachinko and pachislot machines and the operation of fitness clubs.
“With the group companies positioned as a leading firm in each business domains, diverse earnings sources are being secured,” it wrote. “The group as a whole maintains high earning capacity.”
While the ratings agency noted that Digital Entertainment remains Konami’s core business segment with “no signs of any changes to its stable business foundation,” it added, “In the other three businesses that had been affected by the COVID-19 pandemic, demand is recovering as economic activity returns to normal.
“Although there is a possibility that profit will somewhat fluctuate depending on the success of new titles’ sales, JCR believes that a high level of profit will continue to be secured. The financial base is robust.”
Konami, which reported an 11.6% increase in revenue to JPY253.1 billion (US$1.73 billion) in the nine months to 31 December 2023, including 6.3% growth in Gaming & Systems to JPY29.6 billion (US$202 million), is due to release its FY24 results on 9 May.
RelatedPosts
