Happinet has announced its consolidated financial results for the first quarter of the fiscal year ending March 2025, showing a slight increase in sales alongside substantial growth in profits. The company reported sales of 82.538 billion yen (US$586 million), marking a marginal 0.1% rise from the same period last year. However, operating profit surged by 50.3% to 3.278 billion yen (US$23.2 million), ordinary profit increased by 48.6% to 3.474 billion yen (US$24.6 million), and net profit jumped 63.6% to 2.388 billion yen (US$16.9 million).
The toys and amusement businesses were key drivers of profitability. The toys segment saw sales rise by 10.7% to 37.829 billion yen (US$268.6 million), bolstered by the popularity of trading cards such as “Pokemon” and “ONE PIECE,” as well as increased sales of character toys. Meanwhile, the amusement business grew sales by 30.5% to 12.057 billion yen (US$85.6 million), benefiting from the expansion of Gashacoco capsule toy shops and a robust capsule toy market.
Conversely, the visual and music sector faced a 21.4% drop in sales to 13.923 billion yen (US$98.9 million), attributed to the lack of a major hit product. However, segment profits rose 53.8% due to increased overseas sales and box office revenues from invested visual works.
The video game business also struggled, with a 12.4% decline in sales to 18.547 billion yen (US$131.6 million), impacted by sluggish hardware and software sales.
Looking ahead, Happinet projects a challenging fiscal year, with expected sales of 330 billion yen (US$2.34 billion), down 5.8% from the previous year, and net profit anticipated to decrease by 24% to 5 billion yen (US$35.4 million). The company has achieved 25% of its sales target and nearly half of its net profit goal as of this quarter.
