Marvelous Inc. Third Quarter Results Briefing Materials: Fiscal Year Ending March 31, 2023

Marvelous Inc.’s third-quarter results for the fiscal year ending March 31, 2023, reflect a period of mixed performance characterized by growth in amusement operations offset by a decline in consumer game revenues. The company reported net sales of 18,412 million yen, representing 97.1% of the previous year’s figures, while operating profit reached 3,176 million yen, or 79.3% of the prior year’s performance. Despite these year-over-year declines, the company demonstrated positive momentum in the third quarter specifically, with net sales and operating profit showing sequential growth compared to the second quarter.

The company’s business segments experienced divergent outcomes. The Amusement business emerged as a primary growth driver, with net sales rising to 6,047 million yen—a 128.5% increase—largely fueled by the continued success of the Pokémon MEZASTAR arcade machines. Conversely, the Digital Contents segment saw a decline in both sales and profit, impacted by a limited release schedule for consumer titles and struggling performance in North American and European markets. While the new online title Dolphin Wave contributed positively to earnings, these gains were partially mitigated by write-downs on existing online game assets. The Audio & Visual segment also faced challenges, with revenue falling to 2,099 million yen due to the cancellation of stage performances during the seventh wave of COVID-19, though segment profit improved due to the receipt of government subsidies.

Looking ahead, the company maintains its revised full-year forecast, anticipating net sales of 25,900 million yen and an operating profit of 4,000 million yen. Future growth strategies center on the release of new consumer software, including BOKUJO MONOGATARI Welcome! WONDERFUL LIFE and Rune Factory 3 Special, alongside the continued development of new online titles and the expansion of its amusement machine footprint. The company plans to maintain its ordinary dividend at 33 yen per share.