Marvelous Consolidated Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2023

Marvelous Inc.’s consolidated financial results for the third quarter of the fiscal year ending March 31, 2023, reflect a period of mixed performance across its diversified entertainment portfolio. For the nine-month period ending December 31, 2022, the company reported net sales of 18,412 million yen, representing a 2.9% decline compared to the same period in the previous year. Profitability metrics also saw a downturn, with operating profit falling 20.7% to 3,176 million yen, ordinary profit decreasing 16.2% to 3,509 million yen, and profit attributable to owners of the parent dropping 17.9% to 2,410 million yen.

The company’s business segments experienced varying levels of success. The Amusement business emerged as a strong performer, with net sales rising 28.5% and segment profit surging 60.7%, largely driven by the popularity of the Pokémon MEZASTAR machine. Conversely, the Digital Contents business faced challenges, recording a 9.4% decline in sales and a 53.1% drop in profit due to a limited release schedule in the consumer division and write-downs on underperforming mobile titles. The Audio and Visual segment saw a 28.0% decrease in net sales, though segment profit increased by 189.9% due to the impact of government subsidies for live entertainment, despite ongoing disruptions from COVID-19-related performance cancellations.

The financial position of the company remains stable, with total assets reaching 37,842 million yen and an equity ratio of 78.3% as of December 31, 2022. In response to these results and current market conditions, the company has revised its full-year consolidated earnings and dividend forecasts. These figures are based on J-GAAP standards and reflect the company’s ongoing multi-content, multi-use, and multi-device strategy aimed at navigating a competitive and evolving global entertainment landscape.