The decline was driven by higher SG&A and cost of sales in the entertainment segment. Gross profit improved to ¥22,547 million, up 0.6% YoY.
The increase was supported by a positive non-operating profit of ¥3,737 million. Operating margin stood at 56% and ROE rose to 22.1%.
The segment generated ¥29,284 million in sales.
This was up from 46.2% in FY24. Japan remained the largest market with ¥19,438 million in Q3 FY25, followed by North America at ¥3,630 million and Europe at ¥1,949 million.
The rise aligned with new product launches and expanded online services. Capital expenditures for FY25 totaled ¥1,967 million, primarily in real estate and equipment.
Page 2 of the reportSpending was primarily in real estate and equipment. Depreciation expenses reached ¥1,776 million.
The company is managing cost pressures in traditional entertainment operations. Profitability ratios reflect efficient capital use with an operating margin of 56% and ROE of 22.1%.
Efficiency. Operating margin stood at 56% and ROE rose to 22.1%.
The consolidated financial data for FY2025 third quarter presents a mixed performance across the company’s core segments. Total sales reached ¥30,580 million in Q3 FY25, a 5.4% increase from the same period in FY24 but still below the ¥28,978 million recorded in Q3 FY22. Gross profit improved to ¥22,547 million, up 0.6% YoY, while operating profit fell to ¥17,044 million, a 15.5% decline driven by higher SG&A and cost of sales in the entertainment segment. Net profit for Q3 FY25 stood at ¥12,467 million, a 6.4% YoY increase, supported by a positive non‑operating profit of ¥3,737 million. Profitability ratios show operating margin at 56% and ROE rising to 22.1%, reflecting efficient capital use.
Geographically, Japan remains the largest market with ¥19,438 million in Q3 FY25, followed by North America at ¥3,630 million and Europe at ¥1,949 million. Overseas sales accounted for 51.0% of total revenue in FY25, up from 46.2% in FY24, indicating a strategic shift toward international expansion. The entertainment segment dominated sales at ¥29,284 million (95% of total), with console/PC and online/mobile channels contributing 60.5% and 71.2% of digital sales respectively.
Headcount increased from 2,384 to 2,531 employees by year‑end FY25, a 6.7% rise aligned with new product launches and expanded online services. Capital expenditures for FY25 totaled ¥1,967 million, primarily in real estate and equipment, while depreciation expenses reached ¥1,776 million. The data suggest a focus on sustaining growth through digital monetization and overseas market penetration, while managing cost pressures in traditional entertainment operations.