Marvelous Results Briefing Materials: First Half of Fiscal Year Ending March 31, 2019

Marvelous Inc.’s financial results for the first half of the fiscal year ending March 31, 2019, demonstrate a period of growth in both revenue and profit, driven primarily by strong performance in the Consumer Game and Audio & Visual segments. Net sales reached 13,314 million yen, representing a 20.9% increase year-over-year, while operating profit rose 56.8% to 2,767 million yen. This growth was bolstered by the successful release of new domestic software titles, robust amusement business operations, and the recognition of special revenue from the sale of software assets.

The company’s performance across its three core segments was mixed. The Consumer Game Business served as the primary growth engine, with sales increasing 63.4% to 5,716 million yen. Conversely, the Online Game Business experienced a slight decline, with sales falling 2.1% to 4,478 million yen due to the underperformance of new titles released in the previous fiscal year and a softening in long-seller revenue. The Audio & Visual Business maintained stability, recording a 5.5% increase in sales to 3,125 million yen, supported by successful stage productions and secondary usage rights.

To address challenges in the Online Game segment and improve future efficiency, the company initiated structural reforms, including organizational restructuring to accelerate decision-making and a review of personnel systems to compress fixed costs. Looking toward the full fiscal year, the company maintains a conservative outlook, forecasting net sales of 25,000 million yen and an operating profit of 4,500 million yen. Strategic initiatives for the second half of the year focus on the release of new titles, the expansion of existing intellectual property into overseas markets, and the introduction of new amusement machines to sustain momentum.