The company achieved record-high sales of 217.3 billion yen in FY2025 Q2, up 1.2% YoY, with operating profit increasing by 0.7% YoY to 20.8 billion yen, primarily driven by Media & IP and Ad businesses.
02
An inappropriate accounting treatment at a consolidated subsidiary led to corrections of past annual securities reports and amendments of financial statements, with details released on May 15, 2025.
03
The Media & IP business saw significant growth, with sales up 14.4% YoY to 57.0 billion yen and operating profit increasing 6.5x YoY to 3.3 billion yen, through building a multi-layered revenue stream and investing in anime production.
04
The Ad business maintained a high sales increase rate, up 9.9% YoY to 117.5 billion yen, and operating profit increased by 8.7% YoY to 6.0 billion yen, with an operating profit margin of 5.1%.
05
Sales and profit in the game console game sector declined 23.4% YoY to 51.4 billion yen and 15.7% YoY to 15.3 billion yen respectively, despite a significant QoQ increase (34.6% in sales, 4.6x in OP) due to a game release in February 2024.
06
The company is expanding its AI agent service, initially developed for internal use (reducing report completion time from 1-2 days to 2 minutes), to external clients as of March 2025, offering customized AI agents in cooperation with Oracle.
07
The new game "SD Gundam G Generation ETERNAL," co-developed with Bandai Namco Entertainment Inc., was globally released on April 16, 2025, and the company is implementing external payment methods in apps like "Project SEKAI COLORFUL STAGE!" and "Princess Connect! Re:Dive" following the Act on Promotion of Competition for Specified Smartphone Software.
Insights
01
The company achieved record-high sales of 217.3 billion yen in FY2025 Q2, up 1.2% YoY, with operating profit increasing by 0.7% YoY to 20.8 billion yen, primarily driven by Media & IP and Ad businesses.
02
An inappropriate accounting treatment at a consolidated subsidiary led to corrections of past annual securities reports and amendments of financial statements, with details released on May 15, 2025.
03
The Media & IP business saw significant growth, with sales up 14.4% YoY to 57.0 billion yen and operating profit increasing 6.5x YoY to 3.3 billion yen, through building a multi-layered revenue stream and investing in anime production.
04
The Ad business maintained a high sales increase rate, up 9.9% YoY to 117.5 billion yen, and operating profit increased by 8.7% YoY to 6.0 billion yen, with an operating profit margin of 5.1%.
05
Sales and profit in the game console game sector declined 23.4% YoY to 51.4 billion yen and 15.7% YoY to 15.3 billion yen respectively, despite a significant QoQ increase (34.6% in sales, 4.6x in OP) due to a game release in February 2024.
06
The company is expanding its AI agent service, initially developed for internal use (reducing report completion time from 1-2 days to 2 minutes), to external clients as of March 2025, offering customized AI agents in cooperation with Oracle.
07
The new game "SD Gundam G Generation ETERNAL," co-developed with Bandai Namco Entertainment Inc., was globally released on April 16, 2025, and the company is implementing external payment methods in apps like "Project SEKAI COLORFUL STAGE!" and "Princess Connect! Re:Dive" following the Act on Promotion of Competition for Specified Smartphone Software.