Consolidated Results for the First Quarter ended June 30, 2011 (Prepared in Accordance with U.S. GAAP)

August 4, 2011

KONAMI CORPORATION

We hereby announce that our consolidated net revenues and consolidated operating income for the first quarter ended June 30, 2011 were ¥54,915 million (103.3 % of the same period in the previous year) and ¥7,024 million (244.0 % of the same period of the previous year), respectively.

Income before income taxes and net income attributable to KONAMI CORPORATION were ¥6,706 million (273.5 % of the same period in the previous year) and ¥4,043 million (319.7 % of the same period of the previous year), respectively.

Consolidated results for the first quarter is consistent with our full year earnings forecast, while our year-on-year profit increased considerably due to the strong sales generated by our social games.

In the Digital Entertainment business, social games "DRAGON COLLECTION" and "SENGOKU COLLECTION," which were launched last fiscal year, continued to increase their membership. "Professional Baseball Dream Nine", released just in time for the professional baseball season-opening, is also increasing its membership.

In the Gaming & Systems business, we continued to maintain a record high net revenues and operating income for the first quarter despite the appreciation of the yen. Our video slot machine "Podium" showed brisk sales.

Although some of the products releases were delayed due to the effects of the Great East Japan Earthquake, the Pachinko & Pachinko Slot Machines business progressed favorably.

Due to the improved efficiency of the management of the facilities, the operating income of the Health & Fitness business was higher than that of the same quarter of the previous year.

1. Consolidated Results of Operation

(Millions of yen)
 
Three Months ended
June 30, 2011
Three Months ended
June 30, 2010
Net Revenues
54,915
53,183
Operating Income
7,024
2,879
Income Before
Income Taxes
6,706
2,452
Net income attributable
to KONAMI CORPORATION
4,043
1,265

2.Segment Information - Net Revenues

(Millions of yen)
 
Digital Entertainment
Gaming & System
Pachislot &
Pachinko Machines
Health & Fitness
Eliminations
Consolidated
Three Months ended
June 30, 2010
25,016
4,346
2,665
21,428
-272
53,183
Three Months ended
June 30, 2011
26,102
5,098
3,722
20,258
-265
54,915
% of previous year
104.3
117.3
139.7
94.5
-
103.3

3.Segment Information - Operating Income

(Millions of yen)
 
Digital Entertainment
Gaming & System
Pachislot &
Pachinko Machines
Health & Fitness
Corporate and Eliminations
Consolidated
Three Months ended
June 30, 2010
2,347
1,151
948
149
-1,716
2,879
Three Months ended
June 30, 2011
6,059
1,235
735
283
-1,288
7,024
% of previous year
258.2
107.3
77.5
189.9
-
244.0

4.Overview of the First Quarter ended June 30, 2011

Digital Entertainment Business

  1. SNS game "DRAGON COLLECTION" saw membership top 3 million players, remained the top-ranking GREE title for 37 straight weeks, and launched its smartphone version in June.
  2. "SENGOKU COLLECTION" earned popularity with membership surpassing 1.5 million players.
  3. Membership of "Professional Baseball Dream Nine," officially licensed by Nippon Professional Baseball, surpassed 1 million after being launched in April on GREE platform. On its game ranking, the game maintained second place for 11 consecutive weeks, following DRAGON COLLECTION in first place.
  4. J.League-licensed "FOOTBALL ALLSTAR'S," and Nippon Professional Baseball-licensed "BASEBALL ALLSTAR'S" were released as the first title of the Digital Game Card series, a new product that combines the fun of trading cards and social games.

Gaming & System Business

  1. Solid sales of video slot machine "Podium."
  2. Steady increase of income from participation fees.
  3. Expanded sales network and extended partnership with official distributors in Central and South American, European and Asian markets.

Pachinko & Pachinko Slot Machines Business

  1. Launched "ONIHAMA GAIDEN HAYATO SHIPPU DEN," planned and produced by TAKASAGO ELECTRIC INDUSTRY CO., LTD.

Health & Fitness Business

  1. Added two new directly operated clubs (Izumi Fuchu and GRANCISE OSAKA) including reconstructions, and 8 new contract-based clubs.
  2. Reopened Ebina and Kawasaki facilities that were closed due to the effect of the Great East Japan Earthquake. (The Sendai Nagamachi facility, the last remaining facility affected by the Earthquake, was reopened on August 1, 2011.)

*Statements made in this news release reflect information available on the date of its announcement, and is subject to change without prior notice.