Namco Bandai Holdings Financial Highlights: Third Quarter of the Fiscal Year Ending March 2010

Key insights

6 takeaways

01
Namco Bandai Holdings reported a net loss of 11.7 billion yen for the first nine months of the fiscal year ending March 2010, with operating income plummeting to 4.7 billion yen, just 23.7% of the previous year's performance.See it on page 1
02
Consolidated net sales for the nine-month period reached 282.8 billion yen, representing an 89.6% performance compared to the same period in the prior fiscal year.See it on page 2
03
The Amusement Facility segment saw the steepest decline, with net sales falling to 49.2 billion yen (83.2% of the prior year) as the company aggressively reduced its facility count from 1,561 to 1,200 locations.See it on page 4
04
Core business segments underperformed across the board, with Toys and Hobby sales reaching 108.9 billion yen (90.8% of prior year) and Game Contents sales reaching 104.7 billion yen (91.9% of prior year).See it on page 1
05
While Japan remained the primary revenue driver at 213.4 billion yen, international performance was mixed, with the Americas market dropping sharply to 62.6% of the prior year's revenue, while European and Asian markets achieved growth.See it on page 1
06
Financial pressure was compounded by rising internal costs, as the company increased investments in R&D to 30.5 billion yen and personnel expenses to 29.6 billion yen during the reorganization.See it on page 1

Summary

Namco Bandai Holdings’ financial results for the third quarter of the fiscal year ending March 2010 reflect a period of significant contraction across its primary business segments. The company reported consolidated net sales of 282.8 billion yen for the nine-month period, representing an 89.6% performance compared to the same period in the previous fiscal year. Operating income experienced a sharper decline, falling to 4.7 billion yen, or 23.7% of the prior year’s results, while net income dropped into a deficit of 11.7 billion yen.

The downturn was broad-based, affecting all major divisions. The Toys and Hobby segment, a core pillar of the business, saw net sales reach 108.9 billion yen, or 90.8% of the previous year’s figures. The Game Contents segment, which includes arcade machines and home video game software, reported net sales of 104.7 billion yen, or 91.9% of the prior year. The Amusement Facility business also struggled, with net sales totaling 49.2 billion yen, or 83.2% of the previous year, as the company reduced its total number of facilities from 1,561 to 1,200.

Geographically, Japan remained the primary revenue driver, contributing 213.4 billion yen, though this was only 89.9% of the previous year’s performance. International markets showed mixed results; while the Americas saw a significant decline to 21.2 billion yen (62.6% of the prior year), the European and Asian markets demonstrated growth, reaching 35.3 billion yen and 12.9 billion yen, respectively. The company’s financial position was further impacted by increased R&D and personnel investments, which rose to 30.5 billion yen and 29.6 billion yen, respectively, as the group navigated a challenging global economic environment and internal reorganization.