Japanese entertainment distributor Happinet Corp. posted a 38% surge in operating profit to ¥6.52 billion ($43.5 million) for the six months through September, powered by strong sales of Pokemon and ONE PIECE trading cards that resonated with adult collectors.
The Tokyo-based company reported overall revenue growth of 4.7% to ¥168.5 billion ($1.12 billion), with its toy division leading the charge. Trading cards and Bandai’s Tamagotchi products helped boost toy segment profit by 37% to ¥4.51 billion ($30.1 million).
While the visual and music unit saw sales drop 13.9%, its profit more than tripled thanks to successful box office performances and growing overseas distribution. However, the gaming division struggled, with profit plunging 72% due to weak hardware sales and writedowns on new mobile apps.
The company’s capsule toy business continued to expand, benefiting from increased tourism, with its Gashacoco chain reaching 118 locations by September.
Despite the strong first half, Happinet maintained its conservative full-year forecast, projecting a 10.1% decline in operating profit to ¥7.8 billion ($52 million), suggesting potential headwinds in the second half of the fiscal year.
