https://wccftech.com/konami-q1-results-profits-fall-due-to-research-development/

Konami (TYO:9766) is expecting a strong year. This is the major takeaway from their Q1 financial results, released two days ago. The reason behind this is also the reason the company has shown a fall in profits, despite growing revenue. Reportedly, this is as a result of increased spending on research and development in the company’s Digital Entertainment segment.

Revenue for the company has increased by 4.9% year-on-year, from ¥55.7 billion to ¥58.5bn. From this, the company has actually seen profits fall by 3.1% from ¥12.2bn to ¥11.8bn. The primary driving factor behind both the increase in revenue and also the decrease in profits is the Digital Entertainment (video games) segment. This segment saw growth in revenue of 4% from ¥28.9bn to ¥30.1bn, though profits fell from ¥10.4bn to ¥9.1bn, a fall of 13%.