Bandai Namco Holdings: Financial Highlights for the Third Quarter of the Fiscal Year Ending March 31, 2018

Key insights

6 takeaways

01
Bandai Namco reported net sales of 483.18 billion yen for the first nine months of the fiscal year ending March 31, 2018, a 5.2% increase year-over-year, though operating profit fell to 53.46 billion yen, or 88.9% of the previous year's performance.See it on page 1
02
The Network Entertainment segment drove growth with 285.33 billion yen in sales—a 9.4% increase—fueled by 148.1 billion yen in network content revenue.See it on page 1
03
The Dragon Ball franchise remains a critical asset, generating 65.4 billion yen in group-wide sales through the third quarter.See it on page 2
04
The Toys and Hobby segment experienced stagnant growth, recording 164.38 billion yen in sales.See it on page 1
05
Geographically, Japan remains the dominant market with 389.24 billion yen in sales, while Europe saw a 10.1% increase in sales and the Americas experienced a decline to 31.13 billion yen.See it on page 1
06
Amusement facility operations expanded to 287 total locations, an increase from 260 facilities in the prior year.See it on page 3

Summary

Bandai Namco Holdings’ financial results for the third quarter of the fiscal year ending March 31, 2018, reflect a period of steady growth driven by strong performance in its Network Entertainment segment. For the nine-month period, the company reported net sales of 483.18 billion yen, representing a 105.2% increase compared to the previous year. Despite this top-line growth, operating profit reached 53.46 billion yen, which was 88.9% of the prior year’s performance, indicating a shift in profitability margins across its diverse business units.

The Network Entertainment segment served as the primary revenue driver, contributing 285.33 billion yen in sales, a 109.4% increase year-over-year. This growth was largely supported by strong performance in network content, which reached 148.1 billion yen for the nine-month period. Conversely, the Toys and Hobby segment remained relatively flat, recording 164.38 billion yen in sales. The company’s intellectual property strategy remained central to its operations, with the Dragon Ball franchise emerging as a standout performer, generating 65.4 billion yen in group-wide sales through the third quarter.

Geographically, Japan remains the company’s dominant market, accounting for 389.24 billion yen in sales. While the European market showed positive momentum with a 110.1% increase in sales compared to the previous year, the Americas region experienced a decline, reporting 31.13 billion yen in sales. The company’s amusement facility operations saw an expansion in footprint, ending the third quarter with 287 total facilities, up from 260 in the prior year. These results underscore a strategic focus on leveraging high-value intellectual properties and digital content to maintain market share while navigating fluctuating performance in hardware and physical retail sectors.