Marvelous Results Briefing Materials: First Half Fiscal Year Ending March 31, 2020

Marvelous reported a decline in financial performance for the first half of the fiscal year ending March 31, 2020. Net sales reached 10,836 million yen, representing an 18.6% decrease compared to the same period in the previous fiscal year. Operating profit fell by 54.3% to 1,264 million yen, while profit attributable to owners of the parent dropped to 743 million yen. These results were primarily driven by lower sales in the online game segment, the absence of one-time income from software asset sales recorded in the prior year, and timing differences in revenue recognition for stage performance operations.

The company operates across three primary segments: Online Games, Consumer Games, and Audio & Visual. The Online Game business saw sales decline to 3,553 million yen as long-standing titles aged, though the company initiated efforts to bolster this segment with the September 2019 launches of Logres Stories and Girl Cafe Gun. The Consumer Game business generated 5,241 million yen, supported by the successful release of titles such as Rune Factory 4 Special and Daemon X Machina, alongside the continued popularity of the Pokémon Ga-Olé amusement machine. The Audio & Visual segment recorded 2,059 million yen in sales, impacted by the aforementioned revenue recognition timing for stage productions.

Despite the overall downturn, the company maintained a focus on structural reforms and the disposal of unprofitable titles to improve margins. Looking toward the second half of the fiscal year, management is prioritizing the promotion of new mobile titles and the release of several high-profile console games, including Bokujo Monogatari Saikai no Mineral Town and Control. The full-year forecast anticipates net sales of 26,000 million yen and an operating profit of 3,800 million yen, reflecting a cautious outlook amidst ongoing industry shifts.