Marvelous Fiscal Year Ending March 2025: First Half Results Briefing Materials

Marvelous Inc.’s financial results for the first half of the fiscal year ending March 2025 reveal a period of contraction, characterized by decreased sales and profit compared to the same period in the previous year. Net sales for the six-month period ending September 30, 2024, totaled 12,877 million yen, a 8% decline from the 13,999 million yen reported in the prior year. Operating profit fell significantly to 592 million yen, down from 1,153 million yen, while profit attributable to owners of the parent dropped to 78 million yen.

The decline in performance is primarily attributed to a lack of new core consumer game releases in both domestic and international markets. Additionally, profitability was impacted by a 656 million yen increase in research and development expenses, driven by changes in accounting estimates, and upfront costs associated with the replacement of amusement machines. Non-operating expenses also included 368 million yen in foreign exchange losses resulting from the appreciation of the yen.

Performance varied across the company’s three primary business segments. The Digital Contents segment saw net sales drop to 6,246 million yen, while the Amusement segment experienced a slight increase in sales to 4,388 million yen, despite lower segment profits due to machine replacement costs. The Audio & Visual segment reported higher sales of 2,242 million yen, bolstered by stage performance revenue, though segment profit declined due to development costs for new intellectual property.

Despite these results, the company maintains its full-year forecast for the fiscal year ending March 2025, citing the anticipated concentration of core consumer title launches in the second half of the year. Strategic efforts continue to focus on global expansion, evidenced by the August 2024 establishment of a Singapore-based subsidiary to serve as the Asian headquarters for the amusement business.