All data are based on the daily closing price as of October 9, 2024

Happinet Reports Strong Profit Growth Despite Flat Sales in Q1

Robust performance in toys and amusement segments offsets challenges in video game and visual sectors
Japan
h 7552.TSE Mid and Small Cap 2000 Games 75 Entertainment 100
Share this on

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.

Share this on
Jakota Newsletter

Stay ahead in the JAKOTA stock markets with our roundup of vital insights

Icon scroll to top