Bandai Namco Holdings Financial Highlights: Third Quarter Fiscal Year Ending March 31, 2017

Key insights

6 takeaways

01
Bandai Namco reported strong growth for the first nine months of FY2017, with net sales reaching 459.1 billion yen (a 108% increase) and operating income hitting 60.1 billion yen (a 132.9% increase).See it on page 1
02
The Network Entertainment segment was the primary growth driver, generating 280.4 billion yen in sales and 38.5 billion yen in operating income through network content and arcade machines.See it on page 1
03
The Toys and Hobby segment underperformed, with sales falling to 146 billion yen from 162 billion yen in the previous year due to fluctuations in major intellectual property performance.See it on page 1
04
Japan remains the company's core market, contributing 361.2 billion yen in sales and 49.5 billion yen in operating income, significantly outpacing international regions.See it on page 1
05
Despite regional challenges in Europe where sales declined to 28.8 billion yen, the company maintained its full-year forecast of 590 billion yen in net sales and 57 billion yen in operating income.See it on page 1
06
The company's business strategy continues to center on leveraging major intellectual properties like Dragon Ball and Mobile Suit Gundam across digital, software, and amusement facility operations.See it on page 2

Summary

Bandai Namco Holdings’ financial results for the third quarter of the fiscal year ending March 31, 2017, demonstrate strong growth across its consolidated operations. The company reported net sales of 459.1 billion yen for the nine-month period, representing a 108% increase compared to the same period in the previous fiscal year. Operating income also saw significant expansion, reaching 60.1 billion yen, a 132.9% increase year-over-year. These results reflect a robust performance, leading the company to maintain its full-year net sales forecast at 590 billion yen and operating income at 57 billion yen.

The Network Entertainment segment served as the primary driver of this growth, contributing 280.4 billion yen in sales and 38.5 billion yen in operating income. This segment benefited from strong performance in network content and arcade game machines. Conversely, the Toys and Hobby segment experienced a decline, with sales reaching 146 billion yen, down from 162 billion yen in the prior year, largely due to fluctuations in major intellectual property performance. The Visual and Music Production segment remained stable, contributing 40.9 billion yen to total sales.

Geographically, Japan remains the company's dominant market, accounting for 361.2 billion yen in sales and 49.5 billion yen in operating income. While the Americas showed growth in both sales and operating income, the European and Asian markets faced challenges, with European sales declining to 28.8 billion yen. The company’s strategy continues to rely on leveraging major intellectual properties, such as Dragon Ball and Mobile Suit Gundam, to drive engagement across its diverse business segments, including digital card sales, home video game software, and amusement facility operations.