Bandai Namco Holdings Consolidated Financial Report: Third Quarter of the Fiscal Year Ending March 31, 2015

Key insights

7 takeaways

01
Bandai Namco reported strong growth for the first nine months of the fiscal year ending March 31, 2015, with net sales rising 11.2% to ¥409.18 billion and operating income increasing 11.4% to ¥47.64 billion.See it on page 2
02
The Toys and Hobby segment was the primary driver of financial performance, recording a 31.2% surge in sales fueled by the success of Mobile Suit Gundam and Yokai Watch.See it on page 5
03
The company has set a new mid-term financial goal to reach ¥60 billion in operating income by the 2018 fiscal year.See it on page 7
04
Effective April 2015, the company will undergo a structural reorganization, replacing existing segments with three new categories: Toys and Hobby, Network Entertainment, and Visual and Music Production.See it on page 15
05
The company’s long-term strategy focuses on an 'IP-axis' approach, prioritizing the global development and maximization of intellectual property value across all business units.See it on page 7
06
Despite overall growth, the Amusement Facility segment underperformed during this period, recording a slight increase in losses.See it on page 6
07
The company maintains a solid financial position with a 69.6% equity ratio and net income of ¥31.96 billion for the nine-month period.See it on page 2

Summary

Bandai Namco Holdings achieved robust financial growth during the first nine months of the fiscal year ending March 31, 2015, characterized by an 11.2% increase in net sales to ¥409.18 billion and an 11.4% rise in operating income to ¥47.64 billion. This performance was largely propelled by the Toys and Hobby segment, which experienced a significant 31.2% surge in sales. The success of both established franchises, such as Mobile Suit Gundam, and emerging intellectual properties like Yokai Watch served as the primary catalysts for this expansion. While the Content Business maintained its role as a vital revenue stream, the Amusement Facility segment struggled, recording a slight increase in losses during this period.

The company maintains a strong financial foundation, evidenced by an improved equity ratio of 69.6% and net income reaching ¥31.96 billion. To capitalize on this momentum and navigate global economic uncertainties, a new mid-term strategy has been established with the objective of achieving ¥60 billion in operating income by the 2018 fiscal year. This strategy centers on an IP-axis approach, prioritizing the global development and maximization of intellectual property value across all business units.

To facilitate these long-term goals, a comprehensive structural reorganization is scheduled for implementation in April 2015. This transition involves replacing existing business segments with three newly defined categories: Toys and Hobby, Network Entertainment, and Visual and Music Production. By streamlining operations into these focused divisions, the organization aims to enhance its agility and better support its overarching mission of international expansion and integrated IP management.