Marvelous Fiscal Year Ended March 2024 Results Briefing Materials

Marvelous Inc.’s fiscal year ended March 31, 2024, reflects a period of revenue growth tempered by profitability challenges and significant accounting adjustments. The company reported net sales of 29.49 billion yen, a 16.4% increase year-on-year, driven by new consumer game releases, strong amusement business performance, and a recovery in stage performance ticket and goods sales. Despite these gains, operating profit declined slightly to 2.41 billion yen, and the company recorded a net loss of 2.44 billion yen, largely due to extraordinary losses stemming from a revision in accounting estimates for game development assets.

The digital contents segment, which includes consumer and online games, generated 15.43 billion yen in sales but saw a sharp decline in segment profit to 474 million yen. This underperformance was attributed to three new original titles failing to meet sales expectations. Consequently, the company has shifted its accounting policy for game development expenses, moving from capitalization to expensing these costs as research and development starting in April 2024, except for specific series titles with high revenue recovery potential. Conversely, the amusement business remained a key profit driver, contributing 3.11 billion yen in segment profit behind the success of Pokémon arcade machines in both domestic and international markets.

Looking toward its 30th anniversary in 2027, the company has outlined a medium-term plan focused on rebuilding its consumer game business, expanding overseas market share, and fostering its own intellectual properties. The strategy emphasizes a shift toward higher-quality global releases and a reduction in the number of new titles to focus on core franchises. For the fiscal year ending March 2025, the company projects net sales between 29 billion and 32 billion yen, with operating profit forecasted between 1.5 billion and 2 billion yen, reflecting continued upfront investments in new business initiatives.