Results Briefing Materials: Q1 Fiscal Year Ending March 31, 2027

Marvelous Inc.’s results briefing for the first quarter of the fiscal year ending March 31, 2027, highlights a period of improved profitability despite a year-over-year decline in net sales. For the period of April through June 2026, the company reported net sales of 6,255 million yen, a 28.4% decrease compared to the same quarter in the previous year. However, operating profit surged to 1,042 million yen, representing a 427.9% increase. This performance was driven by the Amusement business, bolstered by strong international and domestic demand for Pokémon kids' amusement machines, and the Audio & Visual segment, which benefited from robust secondary anime licensing revenue and successful stage productions.

The Digital Content business saw a shift in performance, achieving profitability of 382 million yen compared to a loss in the prior year's first quarter. This improvement was attributed to solid sales of existing titles and repeat purchases, alongside a reduction in large-scale development costs. The company maintains a steady outlook for the remainder of the fiscal year, with plans to release three core console and online titles from the second quarter onward. The full-year forecast anticipates net sales of 30,000 million yen and an operating profit of 3,000 million yen, with an increased annual dividend of 15 yen per share.

A significant strategic development during this period is the dissolution of the capital and business alliance with Image Frame Investment (HK) Limited, a subsidiary of the Tencent Group. Following a review of the evolving global business environment, the company determined that a transition to a more flexible collaboration model with diverse partners is optimal. To support this shift and enhance shareholder value, the company is executing a capital policy that includes the acquisition and cancellation of treasury shares and the implementation of a cash-settled forward transaction agreement. Moving forward, the company remains focused on expanding proprietary intellectual property, strengthening global sales capabilities, and leveraging synergies across its amusement, digital, and media segments.