Marvelous Results Briefing Materials: Fiscal Year Ended March 31, 2022

Marvelous Inc.’s fiscal year 2022 results, ending March 31, 2022, demonstrate a period of overall growth despite mixed performance across its primary business segments. The company reported net sales of 25.7 billion yen, a slight year-on-year increase of 0.8%, and an operating profit of 4.6 billion yen, representing a 4.2% increase. This financial performance was largely driven by the success of the consumer game segment and the amusement machine Pokémon MEZASTAR, which helped offset declines in the online game business and the ongoing operational challenges faced by the live entertainment sector due to the COVID-19 pandemic.

The consumer game segment served as the primary growth engine, with net sales rising to 15.5 billion yen, a 7% increase. Key contributors included the global release of Rune Factory 5, which surpassed 500,000 units shipped, and the continued popularity of amusement hardware. Conversely, the online game segment struggled as aging titles faced increased competition and new releases failed to meet performance expectations, leading to a 17% decline in segment sales. The audio and visual business saw a 13.2% increase in sales, bolstered by strong animation package sales, even as stage performances remained constrained by pandemic-related restrictions.

Looking toward the fiscal year ending March 2023, the company is implementing a structural reorganization of its business segments into three new categories: Digital Contents, Amusement, and Live Entertainment. Strategic initiatives include the global launch of new titles such as DEADCRAFT and LOOP8, continued expansion of the Pokémon amusement franchise, and a robust lineup of animation and stage productions. Due to the persistent uncertainty surrounding the pandemic, the company has opted not to disclose full-year earnings forecasts for the upcoming period, maintaining a cautious approach while continuing its policy of stable dividend distribution.