Marvelous Inc. swung to profit for the fiscal year ended March 2025 despite declining sales, as the Japanese game publisher weathered a lighter release schedule and took steps to write down underperforming assets.
The Tokyo-based company reported sales fell 5.2% to ¥27.96 billion ($195.7 million) and operating profit declined 24.7% to ¥1.82 billion. Net income reached ¥818 million, recovering from a ¥517 million loss in the previous year.
Revenue suffered from fewer major consumer game releases, with November’s “FARMAGIA” title significantly underperforming sales expectations. The company also cited decreased income from stage and visual productions in its audio-visual business, which swung to a segment loss.
The amusement segment provided a bright spot with 15.8% revenue growth to ¥10.45 billion, driven by strong performance of “Pokemon Frenda” machines, which saw over 10 million dispensed items in just one month after its July 2024 launch.
Marvelous recorded impairment losses on struggling overseas amusement cabinets, particularly its NARUTO-themed machines in China that failed to meet revenue targets.
Looking ahead, the company forecasts a robust 25.2% revenue increase to ¥35 billion for fiscal 2026, with net income projected to surge 71% to ¥1.4 billion.
