Marvelous Inc. Fiscal Year Ending March 31, 2024 Third Quarter Results Briefing Materials

Marvelous Inc.’s third-quarter results for the fiscal year ending March 31, 2024, reflect a period of revenue growth tempered by significant profit contraction. While net sales rose to 21,760 million yen—an 18.2% increase year-on-year—operating profit fell by 43.8% to 1,390 million yen. This divergence is primarily attributed to the underperformance of several new consumer game titles, which failed to recover their associated development costs, alongside increased operational expenses.

The company operates across three primary segments: Digital Contents, Amusement, and Audio & Visual. The Digital Contents business, despite achieving 12,137 million yen in net sales, recorded a segment loss of 300 million yen due to the sluggish performance of titles such as Loop8, Frederica, and Fashion Dreamer. Conversely, the Amusement business demonstrated resilience with a 9.2% increase in net sales to 6,602 million yen, driven by the sustained popularity of Pokémon arcade machines in both domestic and international markets. The Audio & Visual segment also saw growth, with net sales rising 43.8% to 3,019 million yen, benefiting from a post-pandemic recovery in ticket and merchandise sales for stage performances.

Reflecting these results, the company has revised its full-year forecast downward. The updated projection for operating profit is now 2,000 million yen, a decrease from the initial forecast of 3,500 million yen, citing the ongoing impact of weak consumer game sales. The financial data provided covers the period from April 1, 2023, to December 31, 2023, and highlights a strategic focus on managing development costs and leveraging established intellectual property to stabilize future performance.