Namco Bandai Holdings Consolidated Financial Results: Fiscal Year Ended March 2009

Key insights

6 takeaways

01
Namco Bandai Holdings reported a 7.4% decline in net sales to 426.399 billion yen and a 33.1% drop in operating income to 22.348 billion yen for the fiscal year ended March 2009.See it on page 1
02
The Amusement Facility segment suffered the steepest decline, with sales falling 14% to 77.269 billion yen due to consistent year-on-year drops in same-store sales across Japan and the U.S.See it on page 4
03
The Toys and Hobby segment, the company's largest revenue driver, saw sales decrease by 8% to 165.725 billion yen, while the Game Contents segment fell 4.3% to 139.405 billion yen.See it on page 1
04
Despite the financial contraction, the company maintained high expenditure levels, investing 33.864 billion yen in research and development and 28.409 billion yen in advertising.See it on page 1
05
To improve operational efficiency, the company integrated its Network business into the Game Contents segment as part of a broader group reorganization.See it on page 1
06
Management projects a modest recovery for the fiscal year ending March 2010, targeting 430 billion yen in net sales and 22.5 billion yen in operating income through a focus on character-based intellectual properties and arcade restructuring.See it on page 1

Summary

Namco Bandai Holdings’ consolidated financial results for the fiscal year ended March 2009 reflect a period of contraction across its primary business segments. The company reported net sales of 426.399 billion yen, representing a 7.4% decline compared to the previous fiscal year. Operating income also saw a significant reduction, falling to 22.348 billion yen, a 33.1% decrease from the prior year. These results were driven by weakened performance in the Toys and Hobby, Amusement Facility, and Game Contents segments, alongside a challenging global economic environment.

The Toys and Hobby segment, a core revenue driver, generated 165.725 billion yen in sales, a 8% decline. The Game Contents segment, which includes home video game software and arcade machines, recorded 139.405 billion yen in sales, down 4.3%. The Amusement Facility business experienced the most pronounced decline, with sales dropping 14% to 77.269 billion yen, exacerbated by a consistent year-on-year decrease in same-store sales across both Japanese and U.S. markets. Geographically, Japan remained the company’s largest market, contributing 319.535 billion yen in external sales, followed by the Americas and Europe.

Despite the downturn, the company maintained significant investment levels, allocating 33.864 billion yen to research and development and 28.409 billion yen to advertising. The company also initiated a group reorganization, integrating the Network business into the Game Contents segment to streamline operations for the upcoming fiscal year. Looking ahead to the fiscal year ending March 2010, management projected a modest recovery, forecasting net sales of 430 billion yen and operating income of 22.5 billion yen, supported by a strategic focus on key character-based intellectual properties and a restructuring of its arcade facility footprint.