Marvelous Inc. Fiscal Year Ended March 31, 2025 Results Briefing Materials

Marvelous Inc.’s fiscal year ended March 31, 2025, was characterized by a decline in overall financial performance, with net sales falling to 27,963 million yen, a 5.2% decrease from the previous year. Operating profit also contracted to 1,817 million yen, representing a 24.7% decline. These results were primarily driven by a reduction in core consumer game releases, a sales slump in new titles, and increased expenses related to research and development. Despite these challenges, the company returned to profitability regarding net income, largely due to the absence of significant extraordinary losses recorded in the prior year.

The company operates across three primary segments: Digital Contents, Amusement, and Audio & Visual. The Digital Contents business saw sales drop to 12,898 million yen, though segment profit improved significantly due to cost efficiencies. Conversely, the Amusement business experienced growth, with sales rising to 10,446 million yen, bolstered by the expansion of overseas operations and new prize machine releases. The Audio & Visual segment faced a downturn, recording a segment loss of 49 million yen due to reduced distribution revenue and asset write-offs related to anime content.

Looking ahead to the fiscal year ending March 2026, the company has set aggressive growth targets, projecting net sales of 35,000 million yen and an operating profit of 2,000 million yen. Management has withdrawn its previous medium-term plan, opting instead to disclose targets on a single-year basis while focusing on a revised pipeline that prioritizes core series titles and multi-platform development. The company intends to increase its dividend to 12 yen per share, reflecting a commitment to shareholder returns despite the ongoing transition in its strategic investment approach.