Marvelous Inc. Third Quarter Results Briefing Materials: Fiscal Year Ending March 31, 2015

Marvelous Inc.’s third-quarter results for the fiscal year ending March 31, 2015, demonstrate strong financial growth driven primarily by the company’s online game segment. For the cumulative nine-month period, net sales rose 24.2% to 18,208 million yen, while operating income increased 35.4% to 2,925 million yen compared to the previous year. This performance reflects a robust expansion in digital offerings, specifically native smartphone applications, which offset challenges in other business areas.

The online game segment served as the primary catalyst for growth, with segment sales increasing 168% and segment income rising 591% year-over-year. The success of the title "Logres of Swords and Sorcery: Goddess of Ancient," which surpassed 5 million cumulative downloads by December 2014, was a major contributor to these results. While the company faced temporary service disruptions with the launch of "Disney Magic Castle Dream Island," management remains optimistic about the segment's trajectory. Conversely, the consumer game business experienced a decline, attributed to weak package software sales and intense competition in the amusement console market. The audio and visual segment maintained steady performance, bolstered by successful stage productions and related merchandise sales.

Despite the volatility in the consumer game sector, Marvelous Inc. has maintained its full-year financial projections. The company anticipates double-digit growth for the third consecutive fiscal year, with total net sales forecasted at 25,000 million yen and operating income at 3,800 million yen. Future strategic initiatives focus on the continued development of native smartphone apps, international expansion of existing titles into markets such as Taiwan, Hong Kong, and Macau, and the upcoming release of new console software. The company continues to monitor macroeconomic conditions and industry trends that may impact these forward-looking projections.