Bandai Namco Holdings Consolidated Financial Report for the Third Quarter: Fiscal Year Ending March 31, 2019

Key insights

6 takeaways

01
Bandai Namco reported strong Q3 growth for the fiscal year ending March 31, 2019, with net sales reaching 528.76 billion yen (a 9.4% increase) and operating profit rising 30.7% to 69.86 billion yen.See it on page 1
02
The company upwardly revised its full-year projections, now anticipating 710 billion yen in net sales and 75 billion yen in operating profit.See it on page 7
03
The Network Entertainment segment, covering home video games and digital content, remained the primary revenue driver with 238.52 billion yen in sales.See it on page 5
04
The Toys and Hobby segment experienced a 66.3% surge in profit, fueled by high demand for mature-fan products like Gundam plastic models and Dragon Ball collectibles.See it on page 5
05
Real Entertainment and Visual and Music Production segments saw significant profit growth of 147.1% and 59.6%, respectively.See it on page 5
06
The company maintains a robust financial position with an equity ratio of 72.7% and total assets of 568.34 billion yen.See it on page 2

Summary

Bandai Namco Holdings reported strong financial growth for the third quarter of the fiscal year ending March 31, 2019, driven by the successful implementation of its "IP Axis Strategy" and a new organizational structure. For the nine-month period ending December 31, 2018, the company achieved net sales of 528.76 billion yen, a 9.4% increase year-on-year. Operating profit rose significantly by 30.7% to 69.86 billion yen, while profit attributable to owners of the parent grew by 30.9% to 53.50 billion yen. These results reflect the company's efforts to maximize the value of its intellectual property across global markets and diverse business segments.

The company operates under a five-unit structure—Toys and Hobby, Network Entertainment, Real Entertainment, Visual and Music Production, and IP Creation—all of which contributed to the positive performance. The Toys and Hobby segment saw a 66.3% surge in profit, bolstered by strong demand for mature-fan products like Gundam plastic models and Dragon Ball collectibles. The Network Entertainment segment, which includes digital content and home video games, remained a primary revenue driver with 238.52 billion yen in sales. Additionally, the Real Entertainment and Visual and Music Production segments reported substantial profit growth of 147.1% and 59.6%, respectively, compared to the previous year.

Reflecting these favorable results, the company upwardly revised its full-year consolidated projections. The updated forecast anticipates net sales of 710 billion yen and an operating profit of 75 billion yen for the fiscal year ending March 31, 2019. The financial position remains robust, with an equity ratio of 72.7% and total assets reaching 568.34 billion yen. The company continues to prioritize its mid-term plan, focusing on global business expansion and the integration of its total capabilities under the "ALL BANDAI NAMCO" concept.