Bushiroad Summary of Consolidated Financial Results for the Full-Term of the Fiscal Year 2021

Key insights

6 takeaways

01
Bushiroad reported a net loss of 284.9 million yen on 32.57 billion yen in net sales for the 11-month fiscal year ending June 30, 2021, marking a decline from the previous year's 1.55 billion yen profit.See it on page 1
02
The company's Trading Card Game division achieved record-high sales, providing a stable core despite the underperformance of mobile gaming assets and pandemic-related restrictions on live events.See it on page 4
03
To strengthen liquidity, the company raised approximately 4.99 billion yen through the issuance of bonds with subscription rights to shares.See it on page 5
04
Management implemented a 2 billion yen share buyback program and announced a 2-for-1 stock split scheduled for October 2021 to bolster shareholder value.See it on page 18
05
Financial projections for the 2022 fiscal year anticipate a return to profitability with forecasted net sales of 36.7 billion yen and an operating income of 1.3 billion yen.See it on page 2
06
The company is prioritizing an 'IP Developer' strategy focused on international expansion and digital transformation to recover from pandemic-driven financial pressures.See it on page 4

Summary

Bushiroad’s financial performance for the 11-month fiscal year ending June 30, 2021, reflects a period of significant transition and external pressure. The company recorded net sales of 32.57 billion yen but suffered a net loss of 284.9 million yen, a stark reversal from the 1.55 billion yen profit achieved in the prior year. This downturn was primarily driven by the restrictive impact of the COVID-19 pandemic on live event operations and the underperformance of specific mobile gaming assets. Despite these headwinds, the company’s Trading Card Game division reached record-high sales, underscoring the resilience of its core physical product lines.

To navigate these fiscal challenges and bolster investor confidence, the company secured its liquidity position by raising approximately 4.99 billion yen through the issuance of bonds with subscription rights to shares. Furthermore, management initiated proactive measures to enhance shareholder value, including a share buyback program capped at 2 billion yen and a 2-for-1 stock split scheduled for October 2021. These financial maneuvers are intended to stabilize the company’s market standing while it continues to execute its long-term IP Developer strategy, which emphasizes international expansion and digital transformation.

Looking toward the 2022 fiscal year, the company anticipates a robust recovery as pandemic-related constraints ease. Projections indicate a return to profitability, with forecasted net sales of 36.7 billion yen and an operating income of 1.3 billion yen. By leveraging its diversified portfolio and focusing on digital growth, the organization aims to restore its pre-pandemic performance levels and solidify its position within the global entertainment and gaming sectors.