Bandai Namco announced its full-year results, showing a strong year for its overall business despite a decline in its video game division.
Japanese publishers record record net sales Sales were 1.5 trillion yen ($6.74 billion), and full-year profit rose more than 12% to 101.4 billion yen ($651.4 million).
However, although both sales and profits of Bandai Namco's digital division, which handles video game business, decreased compared to the same period last year, all of its business results exceeded previous expectations, with profits exceeding expectations by 5.2 billion yen ($33.4 million). .
The company expects its video game business to perform even better in the year ending March 31, 2023.
numbers
- Net sales: 1.5 trillion yen ($6.74 billion, 6% increase)
- Operating income: 90.6 billion yen ($582 million, down 22%)
- Net income: 101.4 billion yen ($651.4 million, 12.3% increase)
Digital (including video games)
- Net sales: 372.6 billion yen ($2.39 billion, -3.4%% decrease)
- Profit: 6.2 billion yen ($39.8 million, down 87%)
highlight
Bandai Namco reported “strong sales” for its biggest console releases, Armored Core 6 and Tekken 8, as well as strong contributions from mobile apps, but noted that PC online games were below target.
The company also pointed out that it had recorded valuation losses and disposal losses during the period. This is due to a review of the title lineup in the digital field as part of the current medium-term plan in order to improve operating profit margins.
Looking ahead, the publisher has high hopes for Elden Ring's DLC Shadow of the Erdtree, which will be released on June 21st, and plans to release “several new titles” in the second half of the year. The company hinted that this should improve its performance in the new financial year.
Most of the growth in the fiscal year ending March 2024 came from the Toys & Hobbies division, with major successes being sales of Gundam figures and new trading card games “One Piece'' and “Dragon Ball.''
Bandai Namco's total net sales, operating income, and net income exceeded expectations, despite declines in some segments and overall operating income.
Looking ahead, the company expects overall growth next year, but profits to decline 20%. However, digital profits are expected to increase 384% year over year.
prediction
- Net sales: 1.08 trillion yen ($6.9 billion, 2.8%% increase)
- Operating income: 115 billion yen ($738.7 million, +27%%)
- Net income: 81 billion yen ($520.3 million, down 20%)
Digital (including video games)
- Net sales: 370 billion yen ($2.38 billion, -0.6%% decrease)
- Profit: 30 billion yen ($192.7 million, 384% increase)
