Marvelous Fiscal Year Ending March 31, 2025 Third Quarter Results Briefing Materials

Marvelous Inc.’s financial results for the third quarter of the fiscal year ending March 31, 2025, reflect a period of mixed performance characterized by a decline in net sales alongside an improvement in operating profit. For the nine-month period ending December 31, 2024, net sales reached 20,720 million yen, a 4.8% decrease compared to the same period in the previous fiscal year. This downturn was primarily driven by a reduction in the number of core consumer game releases and the underperformance of new titles. Conversely, operating profit rose to 1,566 million yen, a 12.6% increase, supported by a significant reduction in the cost of sales, which offset higher selling, general, and administrative expenses related to increased research and development investments.

The company operates across three primary segments: Digital Contents, Amusement, and Audio & Visual. The Digital Contents business, which includes consumer and online games, saw net sales fall to 9,985 million yen, though it achieved a segment profit of 715 million yen. The Amusement segment performed strongly, with net sales growing to 7,435 million yen, driven by overseas expansion and the introduction of new prize machines, despite higher replacement costs for hardware. The Audio & Visual segment reported net sales of 3,300 million yen, benefiting from stage performances and merchandise, though segment profit declined to 193 million yen due to lower distribution revenue and development costs for new intellectual property.

Looking ahead, the company anticipates that full-year net sales and profit will fall below initial projections. Consequently, the dividend forecast has been revised to 10 yen per share. The company continues to focus on its multi-segment strategy, balancing the development of new gaming titles with the expansion of its amusement and entertainment offerings.