Marvelous Fiscal Year Ending March 31, 2024 First Half Results Briefing Materials

Marvelous Inc. reported its financial results for the first half of the fiscal year ending March 31, 2024, reflecting a period of revenue growth tempered by declining profitability. For the six-month period ending September 30, 2023, the company achieved net sales of 13,999 million yen, a 21.2% increase compared to the same period in the previous year. Despite this top-line growth, operating profit fell by 35% to 1,153 million yen, and profit attributable to owners of the parent decreased by 33% to 1,110 million yen.

The company operates across three primary segments: Digital Contents, Amusement, and Audio & Visual. The Digital Contents business, which includes consumer and online games, saw net sales rise to 8,015 million yen, driven by new title releases and the performance of existing mobile titles like Dolphin Wave. However, segment profit dropped significantly due to the sluggish commercial performance of specific consumer game titles and increased development expenditures. The Amusement segment maintained steady growth with net sales of 4,271 million yen, supported by the continued popularity of the Pokémon series, while the Audio & Visual segment reported 1,712 million yen in sales, bolstered by stage performances and animation-related revenue.

Management attributes the profit decline to a combination of underperforming software launches and rising operational costs. Despite these challenges, the company maintains its full-year forecast for the fiscal year ending March 2024, projecting net sales of 27,000 million yen and an operating profit of 3,500 million yen. The company expects profitability to be weighted toward the second half of the fiscal year, contingent upon the release schedule of upcoming titles and continued momentum in its amusement and entertainment divisions.