Marvelous First Half Results Briefing Materials: Fiscal Year Ending March 31, 2016

Marvelous Inc. reported strong financial growth for the first half of the fiscal year ending March 31, 2016, characterized by significant year-over-year increases in both net sales and operating income. Net sales reached 16.4 billion yen, representing a 144.4% increase compared to the same period in the previous fiscal year, while operating income rose to 2.8 billion yen, a 196.0% increase. These results were driven by robust performance across all three primary business segments: Online Games, Consumer Games, and Audio & Visual.

The Online Game segment served as a primary growth engine, bolstered by the enduring popularity of the title "Logres of Swords and Sorcery," which surpassed 7 million cumulative downloads. Despite a substantial increase in advertising expenses to support this title, the segment achieved higher profit margins. The Consumer Game segment benefited from strong new product releases and repeat sales, particularly through the company's U.S. subsidiary, alongside a recovery in the amusement machine business. Simultaneously, the Audio & Visual segment saw success through thriving stage performances and solid sales of anime package products.

Reflecting these positive trends, the company maintained an optimistic full-year forecast, projecting net sales of 35 billion yen and operating income of 6 billion yen. This outlook is supported by a pipeline of new title launches and international expansion efforts, including the introduction of key online titles in Taiwan, Hong Kong, and Macau. The company also emphasized its commitment to shareholder value, evidenced by the execution of a share buyback program in September 2015, which involved the acquisition of 1.6 million shares. The overall financial position remains stable, with management focused on sustaining growth through continued investment in core intellectual properties and flexible capital policies.