Marvelous Results Briefing Materials: First Half Fiscal Year Ending March 31, 2022

Marvelous Inc.’s financial results for the first half of the fiscal year ending March 31, 2022, demonstrate a period of mixed performance characterized by strong growth in the consumer game sector offset by declines in online gaming and audio-visual segments. The company reported net sales of 12,838 million yen, a 36.3% increase year-over-year, and an operating profit of 2,900 million yen, representing a 70.7% increase. This growth was primarily driven by the consumer game business, which saw sales more than double to 7,999 million yen due to the successful performance of titles such as Rune Factory 5 and the amusement-based Pokémon MEZASTAR.

Conversely, the online game business experienced a contraction, with sales falling to 2,955 million yen. This decline was attributed to the aging of long-term operational titles and heightened market competition, despite efforts to revitalize engagement through anniversary events and collaborations. The audio-visual business also faced challenges, reporting a significant profit decrease due to COVID-19-related restrictions on event attendance and stage performances, even as revenue saw a modest uptick from specific stage productions.

Looking ahead, the company maintains a cautious full-year forecast, projecting net sales of 24,000 million yen and an operating profit of 4,000 million yen. Strategic initiatives remain focused on global expansion and intellectual property development, supported by a capital and business alliance with Tencent. This partnership facilitates a 4.9 billion yen investment plan targeting the creation of new global-facing IPs, the enhancement of existing franchises, and the adoption of advanced network technologies. The company continues to prioritize a stable dividend policy, targeting a payout ratio of at least 30% to maintain financial flexibility for future growth.