GENDA Inc. announced robust financial results for the first quarter of the fiscal year ending January 2025, reporting a significant increase in sales and profits. The company achieved sales of 24.685 billion yen, marking a 105.7% rise compared to the same period last year. Operating profit increased by 23.2% to 2.059 billion yen, while ordinary profit rose by 22.3% to 2.015 billion yen. However, net profit saw a decrease of 22.8%, amounting to 1.223 billion yen.
The impressive growth in sales and profits is attributed to the organic expansion in game centers and karaoke operations, as well as better-than-expected post-merger integration (PMI) activities. Sales from existing game centers increased by 7%, and karaoke sales grew by 12%, bolstered by the recovery in foot traffic and a surge in inbound tourism following the easing of COVID-19 restrictions.
Entertainment Platform Business:
The Entertainment Platform Business segment, which now includes amusement, food & beverage (F&B), and newly added karaoke, reported sales of 21.508 billion yen, up 80.9% year-on-year. Segment profit rose by 48.7% to 3.154 billion yen.
In February 2024, GENDA acquired Shin Corporation, adding 368 karaoke facilities to its portfolio. This acquisition has significantly contributed to group synergies, including collaboration projects with other group companies. The domestic amusement business, led by GENDA GiGO Entertainment, also performed well due to increased urban foot traffic and successful M&A activities.
Entertainment and Content Business:
This segment saw sales of 3.751 billion yen, a dramatic increase from 154 million yen in the same period last year. Segment profit surged by 906.4% to 145 million yen. Key contributors include the Character Merchandising (MD) business and the Contents & Promotion business. Fukuya and Ares Company expanded their product supply to group and external customers, while Gaga, a film distributor, released several successful films.
Business Outlook:
For the fiscal year ending January 2025, GENDA forecasts sales of 100 billion yen, representing a 79.5% increase from the previous fiscal year. The company expects operating profit to reach 7 billion yen (up 30.3%), ordinary profit to hit 6.6 billion yen (up 26.5%), and net profit to grow to 4.3 billion yen (up 2.9%).
The progress rates against these targets are 24.7% for sales, 29.4% for operating profit, 30.5% for ordinary profit, and 28.4% for net profit. GENDA’s strategic expansions and successful integration of acquisitions position it strongly for continued growth in the coming quarters.
