Bushiroad FY2022 Q3 Financial Results: Briefing Material

Key insights

6 takeaways

01
Bushiroad has revised its full-year projections upward to ¥40 billion in net sales and ¥4.1 billion in ordinary profit after reaching 103.5% of its initial ordinary profit forecast by Q3.See it on page 17
02
The company’s year-on-year net sales growth is primarily driven by strong performance in its Live IP business and sports division.See it on page 4
03
The Trading Card Game department is a key revenue driver, bolstered by the success of Shadowverse EVOLVE and the expansion of English-language product lines.See it on page 20
04
A ¥418 million foreign exchange gain significantly contributed to the company's bottom-line results during the third quarter.See it on page 16
05
The Digital IP segment saw a temporary profit decline due to changes in product release schedules and updated revenue recognition accounting standards.See it on page 4
06
Bushiroad is executing an 'IP Developer 2.0' strategy, utilizing a 'One-Stop Media Mix' model to integrate production, distribution, and cross-platform promotion across eight core business segments.See it on page 32

Summary

Bushiroad’s fiscal year 2022 third-quarter performance demonstrates significant growth, characterized by a year-on-year increase in net sales fueled primarily by the strength of its Live IP business and sports division. While the Digital IP segment experienced a temporary decline in profit due to shifts in product release cadences and updated revenue recognition accounting standards, the company’s overall financial health remains strong. Ordinary profit has already reached 103.5% of the initial full-year forecast, prompting an upward revision of annual projections to ¥40 billion in net sales and ¥4.1 billion in ordinary profit.

This positive trajectory is supported by the robust performance of the Trading Card Game department, particularly the success of Shadowverse EVOLVE and the expansion of English-language product lines. Additionally, the company benefited from a ¥418 million foreign exchange gain, which bolstered bottom-line results. These financial gains are underpinned by a diversified operational model that spans TCGs, professional wrestling, digital media, and emerging healthcare initiatives, reflecting a broad geographic and sectoral reach.

Central to this success is the IP Developer 2.0 strategy, which seeks to transform eight core business segments into sustainable, high-value intellectual properties. By utilizing a One-Stop Media Mix model, the company integrates internal production, global distribution, and cross-platform promotion to maximize the lifecycle and reach of its assets. This holistic approach ensures that both proprietary and external IPs are leveraged across multiple entertainment channels, solidifying the company’s position as a multifaceted media entity capable of maintaining profitability through a consistent schedule of live events, animation broadcasts, and strategic product releases.