Consolidated Results for the First Quarter ended June 30, 2012(Prepared in Accordance with U.S. GAAP)

August 2, 2012

KONAMI CORPORATION

We hereby announce that our consolidated net revenues and consolidated operating income for the first quarter ended June 30, 2012 were ¥49,128 million (89.5 % of the same period in the previous year) and ¥5,380 million (76.6 % of the same period of the previous year), respectively.

Income before income taxes and net income attributable to KONAMI CORPORATION were ¥4,645 million (69.3 % of the same period in the previous year) and ¥2,715 million (67.1 % of the same period of the previous year), respectively.

Each business segments achieved their targeted plan, resulting in the steady progression of business performance of the result for the first quarter.

The Digital Entertainment business showed brisk sales in step with growth in social games such as DRAGON COLLECTION and the total number of registered users for Konami Group's social games surpassed 23 million users. In amusement video games, several titles have generated steady results, including MAH-JONG FIGHT CLUB ultimate version, a title adopting the e-AMUSEMENT Participation system, under which user’s playing fees are shared with arcade operators. Our popular card game YU-GI-OH! TRADING CARD GAME also performed strongly.

Due to the improved efficiency of the management of the facilities, the operating income of the Health & Fitness business increased year on year.

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

In the Pachinko & Pachinko Slot Machines business, we released our popular series sequel SPYGIRL2 as a new product.

1. Consolidated Results of Operation

(Millions of yen)
 
Three Months ended
June 30, 2012
Three Months ended
June 30, 2011
Net Revenues
49,128
54,915
Operating Income
5,380
7,024
Income Before
Income Taxes
4,645
6,706
Net income attributable to
KONAMI CORPORATION
2,715
4,043

2.Segment Information - Net Revenues

(Millions of yen)
 
Digital Entertainment
Health & Fitness
Gaming & Systems
Pachislot &
Pachinko Machines
Eliminations
Consolidated
Three Months ended
June 30, 2011
26,102
20,258
5,098
3,722
-265
54,915
Three Months ended
June 30, 2012
22,820
19,717
5,205
1,553
-167
49,128
% of previous year
87.4
97.3
102.1
41.7
-
89.5

3.Segment Information - Operating Income

(Millions of yen)
 
Digital Entertainment
Health & Fitness
Gaming & Systems
Pachinko &
Pachinko Slot Machines
Corporate and Eliminations
Consolidated
Three Months ended
June 30, 2011
6,059
283
1,235
735
-1,288
7,024
Three Months ended
June 30, 2012
5,192
682
1,029
404
-1,927
5,380
% of previous year
85.7
241.0
83.3
55.0
-
76.6

4.Overview of the First Quarter ended June 30, 2012

Digital Entertainment Business

  1. SNS game "DRAGON COLLECTION" saw membership top 6.5 million players, maintained the top-ranking position on GREE.
  2. "SENGOKU COLLECTION" received the Platinum Prize award at the Mobage Award 2011, which recognizes outstanding content and we are accelerating multimedia releases including serialization in manga form in Shogakukan Inc.’s Weekly Shonen Sunday.
  3. Arcade videogame "MAH-JONG FIGHT CLUB" which adopted the e-AMUSEMENT Participation enjoyed favorable sales.
  4. Popular card game "YU-GI-OH! TRADING CARD GAME" showed strong performance.

Health & Fitness Business

  1. We introduced a new concept, "Total Health Partner," with the aim of establishing ourselves as a leading provider of new health-themed services, not only providing places for exercise but also addressing the wide range of health needs of all of our customers, from children to senior citizens.
  2. Launched, "Active Check," a new service that evaluates an individual's physical fitness based on ultrasonographic and muscular strength measurement data to provide exercise guidance.
  3. Added eleven new contract-based clubs

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

  1. Launched our popular series sequel "SPYGIRL2," as a new product.
  2. Released "SEVEN BAR 30" as a remake of a previous hit title.

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