Marvelous Inc. Fiscal Year Ended March 31, 2023 Results Briefing Materials

Marvelous Inc.’s fiscal year ended March 31, 2023, was characterized by a significant decline in profitability despite relatively stable net sales. The company reported net sales of 25,341 million yen, a marginal 1.5% decrease from the previous year, while operating profit fell by 54.1% to 2,488 million yen. This sharp contraction in profit was primarily driven by the underperformance of the online game title sakura ignoramus, which necessitated one-time asset amortization charges, alongside a lack of a robust global release lineup and challenging market conditions in Europe and North America.

Performance varied significantly across the company’s three primary business segments. The Amusement segment emerged as a strong performer, with net sales rising 23.9% to 7,801 million yen and segment profit increasing 56.4% to 2,786 million yen, bolstered by the continued success of the Pokémon MEZASTAR and Pokémon Ga-Olé franchises. Conversely, the Digital Contents segment experienced a downturn, with sales dropping to 14,138 million yen and segment profit plummeting to 779 million yen, reflecting the impact of the aforementioned game asset write-downs. The Audio & Visual segment saw a decline in sales to 3,400 million yen due to lower package product volume, though segment profit improved slightly to 537 million yen, aided by the recovery of live stage performances following the easing of pandemic-related restrictions.

Looking ahead to the fiscal year ending March 2024, the company projects a recovery in financial performance, forecasting net sales of 27,000 million yen and an operating profit of 3,500 million yen. Strategic initiatives for the coming year include the release of new titles such as LOOP8 and Fashion Dreamer, continued expansion of the Dolphin Wave online game, and a sustained focus on the Pokémon amusement machine series. The company maintains a stable dividend outlook, planning an ordinary dividend of 33 yen per share.