Marvelous Results Briefing Materials: Fiscal Year Ended March 31, 2021

Marvelous reported a significant increase in profitability for the fiscal year ended March 31, 2021, driven primarily by the strong performance of its consumer game segment. The company achieved an operating profit of 4,414 million yen, representing an 80.2% increase over the previous fiscal year. This growth was largely fueled by the successful releases of titles such as Tensui no Sakunahime and Bokujo Monogatari: Olive Town to Kibo no Daichi, which saw robust global shipments.

The company’s performance across its three primary business segments was mixed. The consumer game business served as the primary growth engine, with net sales rising to 14,474 million yen. The online game business also improved its profit margins by focusing on long-term titles and eliminating unprofitable projects, despite a slight decline in overall segment sales. Conversely, the audio and visual business faced severe headwinds due to the COVID-19 pandemic, which negatively impacted stage performance attendance and ticket sales, resulting in a significant year-over-year decline in both revenue and profit.

Operational initiatives for the upcoming fiscal year focus on maintaining momentum for existing game titles and launching new projects, including Rune Factory 5 and No More Heroes 3. The company continues to monitor the amusement sector, which showed signs of recovery in the fourth quarter of the 2021 fiscal year. Due to the ongoing uncertainty surrounding the pandemic and its potential impact on future operations, the company has opted not to disclose full-year earnings forecasts for the fiscal year ending March 2022. Marvelous maintains a dividend policy targeting a payout ratio of 30% or higher, emphasizing the balance between shareholder returns and the retention of reserves for future business expansion.