Japanese entertainment distributor Happinet Corp. raised its second-quarter profit forecasts by as much as 81%, crediting strong sales from collectible lottery prizes and merchandise tied to Nintendo’s recently launched Switch 2 console.
The Tokyo-based company revised its half-year outlook through September, increasing revenue projections to ¥194 billion ($1.31 billion) from ¥180 billion, representing a 7.8% boost from earlier estimates. Operating profit expectations jumped 45% to ¥8.4 billion ($56.8 million), while net income forecasts surged 81% to ¥6.5 billion ($43.9 million).
Happinet attributed the upward revision primarily to robust performance from BANDAI SPIRITS’ “Ichiban Kuji” lottery system, where customers pay between ¥700-1,000 per ticket for guaranteed anime and gaming collectibles. The lottery format has gained widespread popularity at convenience stores across Japan, though specific sales figures weren’t disclosed.
The company also cited strong demand for Nintendo Switch 2-related products in its video game division. Nintendo’s latest console launched in June, marking the successor to the original Switch that debuted in 2017. Happinet serves as a key distributor for Nintendo and Sony gaming hardware in Japan.
Additional growth came from capsule toy sales in the amusement segment, according to the revision announcement. Happinet operates vending machines that dispense small collectible toys, a business that has seen increased foot traffic as pandemic restrictions ease.
Despite the positive second-quarter outlook, Happinet declined to adjust full-year forecasts, citing uncertainty around the crucial Christmas and year-end shopping season. The period typically accounts for a significant portion of annual toy and gaming sales.
Shares of Happinet have traded in a narrow range around ¥5,140 on the Tokyo Stock Exchange, with the stock showing minimal volatility in recent sessions. The company has maintained steady performance as Japan’s entertainment industry recovers from pandemic-related disruptions.
The earnings revision reflects broader strength in Japan’s collectibles market, where limited-edition merchandise continues to attract dedicated consumer spending despite economic headwinds.
