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

November 4, 2011

KONAMI CORPORATION

We hereby announce that our consolidated net revenues and consolidated operating income for the six months ended September 30, 2011 were ¥123,096 million (106.3 % of the same period in the previous year) and ¥20,185 million (250.8 % of the same period of the previous year), respectively.

Income before income taxes and net income attributable to KONAMI CORPORATION were ¥19,375 million (268.1 % of the same period in the previous year) and ¥11,462 million (273.4 % of the same period of the previous year), respectively.

Consolidated results for the second quarter increased considerably year-on-year due to the brisk progression of each business segments.

The Digital Entertainment business showed brisk sales in step with growth in social networking services (SNS) such as DRAGON COLLECTION and the total number of registered users for Konami Group’s social games surpassed 11 million users. The amusement arcade videogame MAH-JONG FIGHT CLUB, which adopted the e−AMUSEMENT Participation as a new business model in the previous period, and the popular card game series YU-GI-OH! TRADING CARD GAME showed strong performance.

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

In the Pachinko & Pachinko Slot Machines business, ONIHAMA GAIDEN HAYATO SHIPPU DEN, planned and produced by TAKASAGO ELECTRIC INDUSTRY CO., LTD., enjoyed favorable sales. KPE title MAGICAL HALLOWEEN 3 delivered a solid performance with sales volume reaching the highest level for Konami Group.

Due to the improved efficiency of the management of the facilities, the operating income of the Health & Fitness business was higher year on year. Although some of directly managed facilities had been closed due to the Great East Japan Earthquake, all directly managed facilities have resumed operations.

1. Consolidated Results of Operation

(Millions of yen)
 
Six Months ended
September 30, 2011
Six Months ended
September 30, 2010
Net Revenues
123,096
115,763
Operating Income
20,185
8,050
Income Before
Income Taxes
19,375
7,227
Net income attributable
to KONAMI CORPORATION
11,462
4,192
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2.Business Segment Information - Net Revenues

(Millions of yen)
 
Digital Entertainment
Gaming & Systems
Pachislot &
Pachinko Machines
Health & Fitness
Eliminations
Consolidated
Six Months ended
September 30, 2010
53,135
9,264
10,018
43,842
-496
115,763
Six Months ended
September 30, 2011
58,110
10,543
13,325
41,578
-460
123,096
% of previous year
109.4
113.8
133.0
94.8
92.7
106.3

3.Business Segment Information - Operating Income

(Millions of yen)
 
Digital Entertainment
Gaming & Systems
Pachislot &
Pachinko Machines
Health & Fitness
Corporate and Eliminations
Consolidated
Six Months ended
September 30, 2010
4,627
2,481
3,438
754
-3,250
8,050
Six Months ended
September 30, 2011
15,107
2,753
3,689
1,085
-2,449
20,185
% of previous year
326.5
111.0
107.3
143.9
75.4
250.8

4.Overview of the First Half ended September 30, 2011

Digital Entertainment Business

  1. SNS game "DRAGON COLLECTION" saw membership top 4 million players, remained the top-ranking GREE title for 50 straight weeks.
  2. "SENGOKU COLLECTION" earned popularity with membership surpassing 2 million players.
  3. Membership of "Professional Baseball Dream Nine," officially licensed by Nippon Professional Baseball, surpassed 2 million after being launched in April on GREE platform.
  4. The amusement arcade videogame "MAH-JONG FIGHT CLUB," which adopted the e-AMUSEMENT Participation enjoyed favorable sales.
  5. The popular card game "YU-GI-OH! TRADING CARD GAME" showed strong performance.

Gaming & Systems Business

  1. Solid sales of video slot machine "Podium."
  2. Steady increase of sales 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. "ONIHAMA GAIDEN HAYATO SHIPPU DEN," planned and produced by TAKASAGO ELECTRIC INDUSTRY CO., LTD., showed brisk sales. KPE title of "MAGICAL HALLOWEEN 3" delivered a solid performance with sales volume reaching the highest level for Konami Group.

Health & Fitness Business

  1. Added two new directly operated clubs (Izumi Fuchu and GRANCISE OSAKA) including a reconstruction, and 9 new contract-based clubs.
  2. With the reopening of Konami Sports Club Sendai Nagamachi, all directly managed facilities have resumed operations.

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