Bandai Namco reports record sales and rise in profits despite video game decline
But Digital segment beat all forecasts and expects 384% rise in profit next fiscal year
Bandai Namco has released its full-year financial results, showing a solid year for its overall business in the face of declines from its video games segment.
The Japanese publisher recorded record high net sales of ¥1.05 trillion ($6.74 billion) and saw full-year profit rise more than 12% to ¥101.4 billion ($651.4 million).
But while the Digital segment, which handles Bandai Namco's video game operations, saw both sales and profit fall year-on-year, all of its results were ahead of previous forecasts — by ¥5.2 billion ($33.4 million) in the case of profit.
The publisher expects a stronger performance from its video games business for the year ending March 31, 2023.
The numbers
- Net sales: ¥1.05 trillion ($6.74 billion, up 6%)
- Operating profit: ¥90.6 billion ($582 million, down 22%)
- Net profit: ¥101.4 billion ($651.4 million, up 12.3%)
Digital (incl. video games)
- Net sales: ¥372.6 billion ($2.39 billion, down -3.4%%)
- Profit: ¥6.2 billion ($39.8 million, down 87%)
The highlights
Bandai Namco reported "favourable sales" for its biggest home console releases, Armored Core 6 and Tekken 8, as well as strong contributions from its mobile apps, but noted that its PC online games fell short of their targets.
The publisher also noted that it recorded both a valuation loss and disposal loss during the fiscal year. This was due to a reevaluation of its title lineup in Digital, which was part of its current Mid-Term Plan to improve operating profitability.
Looking ahead, the publisher has strong expectations for Elden Ring's Shadow of the Erdtree DLC, which releases on June 21, and teased that it will release "several new titles" in the second half, which should improve its performance in the new fiscal year.
Most of the growth for the fiscal year ended March 2024 came from its Toys & Hobby segment, with sales of Gundam figures and new trading card games for One Piece and Dragon Ball cited as key successes.
Despite the declines in certain segments and overall operating profit, Bandai Namco beat its forecasts for total net sales, operating profit and net profit.
Looking ahead, the company expects to grow overall next year, although is forecasting a 20% drop in profits. However, its Digital profits are expected to increase by 384% year-on-year.
The forecast
- Net sales: ¥1.08 trillion ($6.9 billion, up 2.8%%)
- Operating profit: ¥115 billion ($738.7 million, up 27%%)
- Net profit: ¥81 billion ($520.3 million, down 20%)
Digital (incl. video games)
- Net sales: ¥370 billion ($2.38 billion, down -0.6%%)
- Profit: ¥30 billion ($192.7 million, up 384%)