The Japanese toys and video games giant Bandai Namco Group has revealed that it recorded huge profits and sales in the first quarter of the year. The gaming giant disclosed the Bandai Namco sales report in its consolidated financial results for the first quarter of the fiscal year ending March 31, 2023, April 2022, to June 2022, released today.
The firm recorded 216,241 million yen in sales, up 21.5% year-on-year, and an operating income of 443. While 193 million yen, up 64.3% year-on-year, ordinary profit of 51.274 billion yen, up 78.3% year-on-year, and final profit of 37.019 billion yen, up 77.0% year-on-year. Meanwhile, the gaming firm has projected a total sales of 880 billion yen in the next fiscal year.
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According to the data, the sale of home video game software climbed dramatically year over year by 54.6% to 40.5 billion yen. To 11,444,000 copies, software sales climbed 13.7% year over year. Despite the lack of significant new releases, worldwide re-sales of previous-term releases like “ELDEN RING” performed well.
Meanwhile, 16.6 million copies of the book have been sold globally. The company’s overall repeat sales rose by 34.1% annually to 10.9 million units. Because development expenditures are recorded before the previous term, repeat sales of previously launched titles have a higher profit margin than new titles. The segment profit of the online firm that creates games improved as a result of an increase in repeat business.
Toys and Hobby
In the Toys and Hobby division, the gaming giant reported net sales of 94,872 million yen (up 14.2% year over year) and segment profit of 14,363 million yen (down 0.9% year over year). “Gunpla,” collector figures, and character lotteries, which cater to the high-target sector (adults), did well both in Japan and abroad. Additionally, toys-related goods, including trading card games, candy, and capsule toys, rose in popularity.
IP and Amusement
Net sales for the IP product were 15,686 million yen, down 10.2% from the previous year, while sector profit was 1,085 million yen, down 66.3%. The company created IP-related video works such as the “Love Live!” and “Mobile Suit Gundam” series. It had a minimal impact on profitability as a model. The same period last year, when IP-related licensing revenue was significant, saw lower licensing revenue.
While the segment profit for the amusement business was 2,113 million yen and net sales were 23,022 million yen, up 51.2% annually (segment loss of 662 million yen in the same period last year). The outcome was the best. Despite the effects of COVID-19 spreading throughout Asia, domestic and international amusement center business recovered, with domestic amusement center sales at currently open outlets increasing by 27.1% annually.
However, the company reported sales for other operations of 7,027 million yen (up 5.6% annually), while segment profit was 131 million yen (down 10.9% annually). It consists of businesses that handle logistics for group enterprises as well as other management tasks, and it works to manage these group support-related tasks effectively.
Next Fiscal Year Projection
According to the gaming giant, they anticipate total sales of 880 billion yen (down 1.0% annually), operating income of roughly 100 billion yen (down 20.3% annually), and ordinary income of 101 billion yen (down 20.3% annually) for the entire fiscal year ending in March 2023. Net profit fell by 24.5% to 70 billion yen, and EPS fell by 24.4% to 318.22 yen.
Sales are progressing at a pace of 24.6%, operating profit is at 44.4%, ordinary profit is at 50.8%, and net profit is at 52.9% versus the full-year target for March 2023. The corporation has amended its mid-term prognosis upward with a high pace of progress, but they haven’t changed it this time. Follow TechGenyz for more updates.