Konami Gaming Revenue Slips as Profit Margin Tightens

Konami Group Corp reported mixed results across its casino focused business during the first nine months of financial year 2026, as stable demand in key regions met slower ordering activity and external cost pressure.

Good to Know

• Konami gaming and systems revenue reached JPY28.71 billion through December
• Operating profit declined sharply despite steady North America demand
• Full year revenue outlook remains unchanged, while profit guidance moved lower

Konami Gaming Division Sees Revenue Dip Through December

Konami Group Corp recorded revenue of about JPY28.71 billion, or US$187.4 million, from its gaming and systems division for the nine months ending December 31. The segment includes casino slot machines, casino management systems, and related technology.

That total represented a 5.7 percent year on year decline from JPY30.44 billion in the prior period, according to a Thursday financial update. Operating profit for the segment reached JPY1.82 billion, down 61.4 percent compared with the same period last year.

Operating margin also narrowed. The gaming and systems business posted a margin near 6 percent, compared with roughly 15 percent one year earlier.

Stable Casino Markets Meet Slower Ordering Activity

Konami Group described both the North American and Australian casino markets as stable during the reporting period. Competition among slot machine manufacturers continued to create frequent product refresh cycles and new placement opportunities. The group stated alongside its earnings release.

“In the gaming market, the North American and the Australian markets remained stable. The markets continue to experience the constant introduction of new products by competing slot machine manufacturers providing new placement opportunities.”

Despite steady end market conditions, Konami cited headwinds tied to United States tariff measures and customer hesitation ahead of an upcoming new cabinet launch, which affected ordering behavior.

Technology Expansion Remains a Focus

The gaming and systems division continues to invest in technology deployment across casino floors. Konami highlighted new installations of its Synkros casino management system across several properties. Konami Group stated:

“Synkros, our casino management system, has been newly installed at several casino facilities, including those in California in the U.S., as well as at cruise ships. We expanded the feature of Synk Vision, the player facial recognition solution for slot machines, to table games. This will further improve convenience for both casino operators and players.”

The expansion of Synk Vision into table games reflects a broader effort to integrate player tracking and operational tools across more areas of casino floors.

Growth Outside Traditional Casino Floors

Beyond core casino placements, Konami reported progress in what it described as specialty markets in North America. The company received orders for historical horse racing products in Kentucky and Wyoming, along with video lottery terminal orders in Illinois.

Konami Group operates its casino gaming activities outside Japan through Konami Australia Pty Ltd and United States based Konami Gaming Inc, supporting both established and emerging regulated markets.

In October last year, the group also introduced Konami Online Interactive, positioning iGaming as a third business pillar within Konami Gaming operations.

Outlook Adjusted as Group Results Improve

For the full financial year ending March 31, 2026, Konami maintained its revenue forecast for the gaming and systems division at JPY43.0 billion. However, the group lowered its operating profit outlook for the segment to JPY5.0 billion from a prior estimate of JPY7.5 billion.

Across the entire company, performance remained stronger. Group wide revenue for the nine months through December 31 increased 13.6 percent year on year to nearly JPY353.02 billion.

Total group profit reached approximately JPY74.35 billion, reflecting a 17.8 percent year on year increase.

Konami revised its full year projections upward, citing momentum in digital entertainment. The company now expects full year profit of JPY86.0 billion on revenue of JPY468.0 billion, representing increases of 14.7 percent and 8.8 percent compared with earlier guidance.

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