Marvelous Inc. Fiscal Year Ending March 31, 2023 First Half Results Briefing Materials

Marvelous Inc.’s financial results for the first half of the fiscal year ending March 31, 2023, reflect a period of transition characterized by a year-over-year decline in both revenue and profit. The company reported net sales of 11,546 million yen, representing 89.9% of the previous year’s performance, and an operating profit of 1,774 million yen, which is 61.2% of the prior year’s figures. This downturn is primarily attributed to a reactionary decline in game software sales following an exceptionally strong performance in the same period of the previous fiscal year.

The company operates across three primary segments: Digital Contents, Amusement, and Audio & Visual. The Digital Contents business experienced a significant contraction, with sales falling to 6,038 million yen and segment profit dropping to 598 million yen. Conversely, the Amusement business served as a key growth driver, achieving 4,070 million yen in sales and a 171% increase in segment profit, bolstered by the record-breaking performance of the Pokémon MEZASTAR arcade machines. The Audio & Visual segment saw a decrease in net sales to 1,438 million yen due to a reduction in large-scale stage performances, though segment profit improved to 364 million yen, aided by government subsidies and operational efficiencies.

Despite the overall decline in operating profit, the company recorded a non-operating gain of 671 million yen, largely driven by favorable foreign exchange impacts on foreign currency deposits. Marvelous Inc. maintains a cautious outlook for the remainder of the fiscal year, providing a range-based forecast for net sales between 25,000 and 28,800 million yen. Strategic priorities for the second half include the management of the new online title Dolphin Wave and the release of several consumer game software titles in the fourth quarter to stabilize earnings.