Koei Tecmo posts Q1 loss, plans share offerings to meet TSE criteria

Koei Tecmo Holdings reported consolidated financial results for the three months ended June 30, 2025, with net sales of JPY 14,800m, operating profit of JPY 3,574m, and profit attributable to owners of parent of JPY 6,072m. These results reflect a decrease compared to the same period in 2024.

The company also announced a disposal of 14,740,000 treasury shares via public offering and a secondary offering of 7,000,000 shares by selling shareholders KOYU HOLDINGS CO., LTD. (6,053,500 shares) and Kankyo Kagaku Co., Ltd. (946,500 shares). An additional secondary offering of up to 3,260,000 shares via over-allotment and a third-party allotment of 3,260,000 treasury shares to the Underwriter are also planned.

These measures aim to satisfy the Tokyo Stock Exchange’s continued listing criteria for the Prime Market, specifically addressing the "tradable share ratio" criterion, which the company did not meet as of March 31, 2025 (29.9% against a 35.0% requirement). The estimated net proceeds of up to JPY 34,458,880,000 from the offerings will be allocated to personnel expenses, strengthening the human capital of the company group's entertainment business by March 2028.