Marvelous Inc. announced its consolidated financial results for the first quarter of the fiscal year ending March 2025, revealing a downturn in both revenue and profit. Sales for the quarter were ¥5.86 billion (US$41.4 million), a decrease of 15.6% year-over-year. Operating profit fell sharply by 87.7% to ¥65 million (US$459,000), ordinary profit dropped 57.9% to ¥373 million (US$2.6 million), and net profit declined 67.4% to ¥198 million (US$1.4 million).
The primary causes for this decline were the absence of new major consumer titles, resulting in upfront development costs, and decreased revenue from the replacement of amusement machine (AM) cabinets. Additionally, there was a reduction in the number of stage performances recorded during this period. However, the company did record a foreign exchange gain of ¥230 million as non-operating income, partially offsetting these losses.
In the Digital Contents Business, sales decreased by 22.6% to ¥3.201 billion (US$22.6 million), resulting in a segment loss of ¥46 million (US$325,000), compared to a profit of ¥114 million in the same period last year. Although titles like “Bikkuriman” and existing online games contributed to revenue, the lack of new core consumer titles and significant upfront development costs led to this loss.
The Amusement Business saw a 4.4% year-over-year sales decline to ¥1.6 billion (US$11.3 million), with segment profit down 25.0% to ¥480 million (US$3.4 million). This was attributed to the expenses associated with transitioning to new cabinets, despite only a slight dip in sales during the transition period.
In the Music and Video Business, sales fell by 6.7% to ¥1.004 billion (US$7.1 million), with segment profit dropping 56.6% to ¥87 million (US$613,000). This decrease was due to fewer stage performance titles recorded compared to last year and a reduction in related package sales.
Despite these first-quarter results, Marvelous has maintained its full-year earnings forecast for the fiscal year ending March 2025. The company expects sales to be between ¥29 billion and ¥32 billion (US$204.8 million to US$226 million), representing a 1.7% to 8.5% increase from the previous fiscal year. Operating profit is projected to be between ¥1.5 billion and ¥2 billion (US$10.6 million to US$14.1 million), while ordinary profit is expected to range from ¥1.5 billion to ¥2 billion, indicating a potential decrease of 50.0% to 33.4%. Net profit is forecasted to be between ¥1 billion and ¥1.4 billion (US$7.1 million to US$9.9 million).
