Happinet Corp. reported a 27% jump in operating profit as surging sales of Pokemon and One Piece trading cards offset weakness in its video game division.
Operating profit rose to ¥9.78 billion ($65.2 million) in the nine months through December, while revenue increased 4% to ¥283.2 billion. Net income dropped 7.2% to ¥5.51 billion after the Tokyo-based distributor took a ¥1.35 billion writedown on mobile gaming software.
The toy division, which accounts for 46% of total sales, saw profits surge 38% as trading card games remained popular. The company’s amusement unit benefited from increased tourism, with its Gacha Coco capsule toy shops expanding to 127 locations.
Video game sales slumped 16% due to weak hardware demand and absence of hit titles. The segment’s profit plunged 80% after accounting for gaming app development costs.
Happinet maintained its full-year forecast for operating profit of ¥11.1 billion on sales of ¥360 billion. The company has achieved 88% of its annual profit target with one quarter remaining in the fiscal year.
