Marvelous Inc. First Half Results Briefing Materials: Fiscal Year Ending March 31, 2015

Marvelous Inc.’s first-half results for the fiscal year ending March 31, 2015, demonstrate a period of strategic transition characterized by robust growth in digital gaming offset by contraction in traditional consumer software. The company reported a 18.8% increase in net sales to 11,387 million yen and a 6.2% rise in operating income to 1,449 million yen compared to the same period in the previous year. This performance highlights a successful pivot toward mobile-centric revenue models, which effectively mitigated the underperformance of the company’s legacy consumer game and amusement segments.

The online game business emerged as the primary growth engine, with segment sales rising 154% to 6,117 million yen. This surge was driven largely by the strong performance of native mobile applications, specifically the title "Logres of Swords and Sorcery: Goddess of Ancient," which reached four million downloads during the period. Conversely, the consumer game business faced headwinds, with segment sales declining to 3,430 million yen due to weak package software sales and intense competition in the amusement console sector. The audio and visual business remained stable, bolstered by the consistent popularity of stage performances and related DVD sales.

Despite the volatility across segments, the company maintained its full-year earnings forecast, projecting 25,000 million yen in net sales and 3,800 million yen in operating income. Management’s strategy for the remainder of the fiscal year focuses on sustaining momentum in the online sector through continued television advertising and the launch of new native app titles, while simultaneously attempting to stabilize the consumer game division through the release of key intellectual property titles. These results reflect a broader industry shift toward high-engagement mobile gaming as the primary driver of corporate profitability.