GEO Holdings Co., Ltd. announced a 6.2% decline in sales for the first quarter of the fiscal year ending March 2025, totaling 100,147 million yen (US$703.1 million). The company also reported a significant drop in profits, with operating profit down 24.6% to 4,366 million yen (US$30.6 million), ordinary profit down 22.5% to 5,481 million yen (US$38.4 million), and net profit falling 26.5% to 3,547 million yen (US$24.9 million).
The decrease in sales and profits was primarily attributed to a decline in new product sales, particularly in home game consoles and game software. This decline was in stark contrast to the previous year’s strong performance, which was bolstered by favorable hardware sales and major new title releases.
Conversely, the reuse category showed impressive growth, with sales increasing 17.7% year-on-year to 46,439 million yen (US$326.0 million). This growth was driven by a weak yen, increased inbound demand, and expanded global operations. Reused communication devices, such as smartphones, also performed well, with sales rising 17.8% year-on-year to 19,226 million yen (US$134.9 million).
For the fiscal year ending March 2025, GEO Holdings expects slight sales growth of 0.5% to 436 billion yen (US$3.1 billion) but anticipates a significant decrease in profits. The company projects operating and ordinary profits to fall by 28.6% and 36.0%, respectively, and net profit to drop 45.0% to 6 billion yen (US$42.1 million), reflecting continued challenges in the new product market.
