Bushiroad Summary of Consolidated Financial Results for the Fiscal Year 2022

Key insights

7 takeaways

01
Bushiroad reported net sales of 41.97 billion yen and an operating profit of 3.39 billion yen for the fiscal year ending June 30, 2022, marking a significant recovery from the previous period's 32.57 billion yen in sales and 344 million yen in operating profit.See it on page 1
02
Net profit attributable to owners of the parent reached 3.51 billion yen for FY2022, a substantial turnaround from the 284 million yen loss recorded in the previous fiscal year.See it on page 1
03
The company forecasts continued growth for FY2023, projecting net sales of 50 billion yen (a 19.1% increase) and an operating profit of 3.5 billion yen (a 3.2% increase).See it on page 3
04
The Music Department achieved record-high sales during the fiscal year, driven by both in-house IPs and external products such as 'HATSUNE MIKU: COLORFUL STAGE!'.See it on page 7
05
New Japan Pro-Wrestling Co., Ltd. saw a recovery in audience size and increased profitability in the fourth quarter, bolstered by the 'AEW x NJPW: FORBIDDEN DOOR' collaborative event held in Chicago.See it on page 7
06
To support its 'IP DEVELOPER' strategy, the company acquired an event hall in October 2021 and reopened it as 'HIKOSEN THEATER' in March 2022 to secure performance venues.See it on page 7
07
Operating cash flows were strong at 6.87 billion yen, supported by 1.18 billion yen in subsidy income, while investing activities utilized 4.44 billion yen, primarily for non-current assets and investment securities.See it on page 8

Summary

Bushiroad achieved a robust financial turnaround during the fiscal year ending June 30, 2022, reporting net sales of 41.97 billion yen and an operating profit of 3.39 billion yen. This performance represents a significant recovery from the previous year, shifting from a net loss of 285 million yen to a net profit of 3.51 billion yen. The company’s growth was primarily fueled by the successful execution of its IP Developer strategy, which saw record-high sales in the Trading Card Game department and strong contributions from the Merchandise and Music divisions. While mobile gaming faced stagnation due to intense market competition, the company successfully diversified its portfolio by expanding into console gaming.

The financial health of the organization is further underscored by strong operating cash flows of 6.87 billion yen. These results were achieved despite the adoption of new revenue recognition accounting standards, which necessitated a 657 million yen reduction in retained earnings but ultimately provided a modest boost to operating and ordinary profits. To support its long-term growth trajectory, the company secured 6 billion yen in new capital through private bond placements and bank borrowing. This liquidity is intended to facilitate the transition into a new organizational structure, which will consolidate operations into Entertainment and Sports and Healthcare segments starting in fiscal year 2023.

Looking forward, the company has established an ambitious medium-term plan targeting 100 billion yen in sales by fiscal year 2026. This strategy prioritizes global market expansion and the continued scaling of the Trading Card Game business. By leveraging its established intellectual properties across diverse media formats, the company aims to sustain its current momentum and solidify its position as a multifaceted global entertainment provider.