Financial Highlights for the 3rd Quarter of the Fiscal Year Ending March 2007

The financial results for the third quarter of the fiscal year ending March 2007 reflect a period of consolidation and mixed performance for NAMCO BANDAI Holdings Inc. The company reported consolidated net sales of 330,517 million yen for the nine-month period, representing 95.7% of the previous year’s performance. Operating income reached 32,235 million yen, or 90.5% of the prior year’s results. These figures indicate a slight contraction in top-line growth compared to the same period in the previous fiscal year, though the company maintained profitability across its diversified business segments.

Performance varied significantly by business segment. The Toys and Hobby division remained the largest contributor to revenue, generating 135,399 million yen, while the Game Contents business recorded 100,223 million yen. The Amusement Facility business showed resilience, achieving a 5.4% increase in cumulative sales compared to the prior year. Conversely, the Visual and Music Content segment experienced a decline, with sales totaling 28,199 million yen. Geographically, Japan remained the primary market, accounting for 262,925 million yen in sales, while international operations in the Americas, Europe, and Asia demonstrated growth, with sales in these regions rising by 3.3%, 16.5%, and 14.9% respectively.

The company’s operational focus during this period included significant investment in research and development, which totaled 26,094 million yen, and capital expenditures of 15,317 million yen. In the Game Contents segment, the company sold 16.62 million units of home video game software, with key titles such as Dragon Ball Z Sparking! NEO and Tekken Dark Resurrection driving volume. The network business reported 4.76 million subscribers as of December 31, 2006. These results provide a snapshot of the company’s strategic efforts to balance its traditional toy and hobby strengths with expanding digital and international gaming footprints.